TAS
Senior Member
I wonder if Andrew Knack may be considering a bid for mayor with Sohi definitely out now.
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- Thread starter Airboy
- Start date
Gus Haynes
Active Member
Knack confirms he's considering it: https://edmontonjournal.com/news/lo...e-for-amarjeet-sohis-federal-liberal-campaign
If the choice is Knack or Cartmell, I'll take Knack without hesitation.
If the choice is Knack or Cartmell, I'll take Knack without hesitation.
Gronk!
Senior Member
Knack in a heartbeat for me.
Cartmell is proving himself to be a douche canoe with his anti-Sohi rhetoric.
Gus Haynes
Active Member
Cartmell's warm embrace of the UCP's trojan horse partisan invasion of municipal elections is reason enough not to vote for him, although many other valid reasons also exist.
itom987
Active Member
I agree, Knack is my choice as well.
policyenthusiast
Active Member
Caterina comments on LinkedIn the same way my grandma does on Facebook.
policyenthusiast
Active Member
Working on writing a letter which is so obvious that I feel like I must be missing something. If anyone can shoot this down, please do:
By sourcing funds from other investing bodies, the City of Edmonton can secure funding with fewer “strings attached” at a lower interest rate than that provided by the Government of Alberta by issuing municipal bonds to pay for infrastructure projects. Bonds could potentially be issued at a higher rate of investor return than those sold by the Government of Canada while simultaneously saving the City money on debt servicing.
The financially opportune value difference is shown by the chart below, as the potential for City savings and investor profit exists at any point above the red line and below the blue.
For example, a 10-year City of Edmonton bond issued at 3.5% would deliver 21.95% higher returns than federal bonds for investors, while also saving the City $48,372 per million dollars spent on a capital project (assuming monthly payments).
On March 26th, 2024 the City of Calgary issued its first municipal bond. The 10-year borrowing rate from the Province was 4.86%, and the City offered municipal bonds at 4.2% interest. The interest from investors was immediate and overwhelming, as asset managing parties sought to diversify their bond holdings by purchasing these higher-yield bond products. This process is projected to save Calgary $1,600,000 per year for the next 10 years compared to provincial borrowing.
Am I stupid? Is the City stupid?
By sourcing funds from other investing bodies, the City of Edmonton can secure funding with fewer “strings attached” at a lower interest rate than that provided by the Government of Alberta by issuing municipal bonds to pay for infrastructure projects. Bonds could potentially be issued at a higher rate of investor return than those sold by the Government of Canada while simultaneously saving the City money on debt servicing.
The financially opportune value difference is shown by the chart below, as the potential for City savings and investor profit exists at any point above the red line and below the blue.
For example, a 10-year City of Edmonton bond issued at 3.5% would deliver 21.95% higher returns than federal bonds for investors, while also saving the City $48,372 per million dollars spent on a capital project (assuming monthly payments).
On March 26th, 2024 the City of Calgary issued its first municipal bond. The 10-year borrowing rate from the Province was 4.86%, and the City offered municipal bonds at 4.2% interest. The interest from investors was immediate and overwhelming, as asset managing parties sought to diversify their bond holdings by purchasing these higher-yield bond products. This process is projected to save Calgary $1,600,000 per year for the next 10 years compared to provincial borrowing.
Am I stupid? Is the City stupid?
edm13
Active Member
I can provide some insight here. Prior to 2021, when municipalities borrowed through the province via ACFA, they would borrow at the rate that the province was able to borrow at. So this was a great and efficient way for them to borrow. However in 2021, the province started adding a spread to the rate, which gave Calgary the incentive to go out and start their own bond program to issue in their own name. Edmonton also considered this I believe, but luckily, the province will be removing that spread starting April 1. See article below. There are a lot of costs to setting up your own bond program, and it sucks that Calgary did all that just to see the province go back, so I’m not sure what they will do going forward. But even if the province didn’t reduce the spread, you would really need to consider if it is worth the time and effort and risk to issue in your own name. First off, municipalities would typically borrow for a higher rate than the province. Then like I said, there are costs to manage the program, likely need to hire people. You need to set up a sinking fund to now match the liability, given the bullet structure of the bond. Currently, loans through ACFA are amortizing. Hopefully that gives some additional insight
'A welcome surprise': Province announces return to low-interest loans for local authorities
The Government of Alberta says that it will reverse a previous rate hike on capital project loans to local authorities, a policy that is expected to save municipalities millions.
www.ctvnews.ca
TAS
Senior Member
I always appreciate Salvador's posts and her efforts at providing better literacy in municipal affairs.
City has $34 billion worth of infrastructure- more than a third of that is roads/bridges.
City has $34 billion worth of infrastructure- more than a third of that is roads/bridges.
policyenthusiast
Active Member
From Troy Pavlek:
- Nicholas Rheubottom is running in Ipiihkoohkanipiaohtsi and confirmed to be running with Tim Cartmell's Party
- Stephen Hammerschmidt, in o-day'min is very likely also running with Tim Cartmell's Party
- A couple sources tell me Jennifer Rice filed her notice of intent using her Chinese name, Chun Feng, which would mean she is confirmed to be seeking re-election, and it won't be under Tim Cartmell's banner (but likely will be with PACE)
- Sukhjot Buttar has filed their notice of intent
Gus Haynes
Active Member
Troy Pavlek asked a great question: What are we calling the candidates running under Tim Cartmell's party? Tiny Tims? Timbits?
bodsbods9090
Senior Member
David A
Senior Member
Just when I thought I had heard of everything! Some people are shameless. If I was running against her, I would definitely repeatedly mention both her old name and her new name.
policyenthusiast
Active Member
