qathet Regional District directors have approved more long-term borrowing to pay for the resource-recovery centre and transfer station.
At the November 27 regional board meeting, directors gave first three readings and final adoption to a bylaw to borrow $6.4 million over a 20-year term to pay off short-term borrowing the regional district had taken out to cover construction costs for the centre.
On first and second reading of the bylaw, City of Powell River director Cindy Elliott said the bylaw needed to be in place for the security issuing with the Municipal Finance Authority of British Columbia (MFA), which issues the money to the regional district.
On third reading, Electoral Area B director Mark Gisborne said the money has been spent and a number of board members feel a variety of ways about costs for the project.
“Just like we all know, you’ve got to pay the bills,” said Gisborne.
He asked if the bylaw passed, would it pay some of the bills?
qRD manager of financial services Linda Greenan said bills have already been paid through short-term borrowing, so this bylaw will just replace the short-term borrowing with long-term borrowing. The board then unanimously adopted the bylaw.
At the November 6 finance committee meeting, directors discussed the relative merits of the term of the loan, having been provided recommendations for 30-year, 25-year and 20-year amortization. The committee recommended a 20-year term, which would result in higher taxation, but a net savings in interest of up to $2.6 million, comparing a 30-year to a 20-year term.
The finance committee unanimously carried the recommendation that the board approve up to $6.4 million over a 20-year term, to be taken out for the fall 2025 MFA issue. The regional district will continue to pay the interest for short-term borrowing for the resource recovery centre until the long-term borrowing is taken out.
There is still $2.5 million in borrowing that will have to be taken out by the regional district to cover costs that exceeded the original estimates for the project.
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