Kitimat council unanimously approved the first of three readings for a temporary borrowing bylaw on Jan. 20, setting the stage for the district to secure funds for its new water treatment system efficiently and cost-effectively.
“This bylaw enables the district to save on interest,” said Sue-Lin Tarnowski, Kitimat’s director of finance. “We just pay interest on the amounts that we use, instead of the whole $13.5 million.” Tarnowski also noted the advantage of near-immediate access to funds through temporary borrowing, rather than through through the Municipal Finance Authority (MFA), which only has a semi-annual long-term borrowing schedule.
The proposed bylaw, officially titled the District of Kitimat Water Treatment System Temporary Borrowing Bylaw No. 2062, 2025, provides flexibility during the project’s construction phase. The district can draw on borrowed funds as needed, avoiding interest on unused portions. Upon project completion, the temporary balance will convert to long-term debt, allowing the district to assess reserves and repay part of the borrowed sum to lower long-term interest costs.
Council had previously adopted the loan authorization bylaw in October 2024, which permits borrowing up to $13.5 million. Tarnowski emphasized that the temporary borrowing mechanism would align funding needs with project timelines, reducing financial inefficiencies.
Councillor Terry Marleau sought clarification on the request, leading Tarnowski to explain the operational and financial benefits of the temporary approach.
A 2017 Public Health Engineering report identified multiple deficiencies in the district’s water treatment system, highlighting failures to meet British Columbia’s Surface Water Treatment Objectives. The planned upgrades will address these issues with enhanced filtration, chemical conditioning, and UV disinfection systems.
The project carries a total estimated cost of $24.4 million. Funding includes a $5.99 million grant from the Canada-British Columbia Investing in Canada Infrastructure Program, along with contributions from district reserves and the Northwest BC Regional Funding Agreement. The temporary borrowing bylaw approved by council will cover the remaining funding shortfall.
The new facility is set to be constructed on district-owned land above the 200-year flood level, ensuring its resilience and sustainability. Once completed, it is expected to deliver long-term improvements to water quality and increase capacity to support future population growth.
Final adoption of the borrowing bylaw is expected after its third reading and further consideration at future meetings.
