Peachland council is in the midst of considering a temporary borrowing bylaw to give the district more flexibility in funding a new protective services building.
The move would extend the deadline for borrowing $17.5 million beyond November 2027, giving staff and council more time to manage project costs without rushing into long-term debt. The borrowing was approved by 74 per cent of Peachland residents in 2022.
Under current Municipal Finance Authority (MFA) rules, the authority to borrow expires five years after a loan authorization bylaw is passed. That means Peachland has until November 2027 to secure funds unless a temporary borrowing bylaw is approved.
A temporary borrowing bylaw would allow the district to delay taking out funds until they are needed, avoiding interest payments in the meantime. Once the money is withdrawn, the district would have another five years to convert it into long-term debt.
Staff hope that by collecting parcel taxes, as discussed during the referendum, they can reduce the amount that needs to be borrowed. Parcel taxes are $50 for 2024, $100 for 2025 and $250 planned for 2026. This could lower interest costs in the long term.
鈥淚f we鈥檙e in a position where we can extend this out a little longer without having interest costs or repayment schedules until then, I think is something we actually need to do,鈥� Councillor Alena Glasman said at council鈥檚 Tuesday (Jan. 28) meeting.
Council gave three readings to the temporary borrowing bylaw at the meeting, with adoption to be considered at a future meeting.
