New council kicks off term with debenture approval 0
COLLINGWOOD- The new Colling- wood council kicked off its first session with a business-like 23-minute meeting that dealt exclusively with municipal debentures.
Under the guidance of new mayor Sandra Cooper, the council approved four debenturing bylaws relating to the downtown revitalization project, the municipal library and the reconstruc- tion of First Street.
The council unanimously approved the debentures that included$3.4 mil- lion for the widening of First Street;$2.7 million for the municipal portion of the downtown revitalization;$750,000 for the same project that will be paid by the BIA; and$7.2 million for the new library and municipal offices on Simcoe Street.
The BIA portion of the downtown project will be repaid over 20 years at an interest rate of 4.3 per cent, the council heard.
The organization has been planning for that expense for the last five years and it will not represent a tax increase for members.
The library debenture is also for 20 years at the same interest rate.
The town's portion of the downtown revitalization will be made over 10 years at 3.55 per cent.
The debenture for the First Street work is at the same interest rate and term.
The first payment on those deben- tures will be in June 2011.
Originally a payment was to be made this fall but the former council deferred it.
That decision leaves the new council on the hook for funding an additional million dollars to compensate for the deferral, said new Deputy-mayor Rick Lloyd.
He questioned how the town intended to pay that, and whether increased assessments for 2011 will be of help in finding that money.
Councillor Ian Chadwick said the town realistically needed to find$2 mil- lion dollars to compensate for the shares the school boards and the county will take out of tax revenue.
That matter is to be debated during the upcoming budget process.