Nanaimo city council approved $13.3 million in borrowing from the Municipal Finance Authority of British Columbia for 2013 as the first part of long-term borrowing to pay for the $65-million water treatment facility.
The second phase of borrowing will include a $9.2-million loan in 2014 to, according to a city report, help spread out the impact on water user rates when the repayments begin. The loan rate will be set when the transaction takes place in October, but is estimated to be about 3.2 per cent with an amortization period of 20 years.
The balance of the facility will be paid through federal and provincial grants, development cost charges and water user fees.