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Borrowing bylaws passed to get Prince Rupert water system repairs started

The city said it might need funding through utility fees to secure much-needed federal funding.
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The two bylaws allow the city to raise funds through utility fees if necessary. (Photo/City of Prince Rupert)

City of Prince Rupert passed two borrowing bylaws at the Aug. 16 council meeting, giving the city the ability to hike property taxes for water system infrastructure if needed.

The city said it needs to borrow $45 million to confirm $82 million of the much-desired federal funding needed to complete major repairs on the water and sewage infrastructure. The province of B.C. has already given the city $65 million to begin permanent repairs on the pipes.

Residents were able to vote against the motion, with 47 and 48 doing so before the Aug. 16 deadline, much below the 1000 needed to block the bylaws.

The city said it is “edging closer to having the funds needed,” though it stressed the importance of moving quickly to finally get long-term work started on the water system.

Raising utilities is a “last resort”, as the city said it is exploring other borrowing options through grants and loans. However, these grants are only prospective, and Ottawa needs assurance of funds, according to the city.

As pipes continue to burst, Mayor Herb Pond highlighted the urgent need for borrowing the $45 million.

“Already this August, we’ve seen ten water main breaks and 21 water service leaks. For comparison, there are communities that see less than that in a year,” Pond said.

The work currently being done all over the city is only temporary, meaning the high costs are “throw-away money” until the permanent work begins, according to Pond.

Pond said there was an estimated $500,000 spent in the last two weeks, none of which will solve any long-term problems in the water system.



About the Author: Seth Forward, Local Journalism Initiative

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