Council approves fire hall borrowing
The city has the go-ahead to now borrow $6.7 million to build a new fire hall at the top of Two Mile Hill.
The city has the go-ahead to now borrow $6.7 million to build a new fire hall at the top of Two Mile Hill.
In late March, city council passed third reading of the bylaw that will see it borrow $6.7 million of the $10.7 million it's estimated to cost to construct the 2,732-square-metre structure.
Along with meeting the needs for a fire hall, the building will include a meeting room for emergency measures officials and a room built specifically for computer equipment housing much of the city's data.
Under the borrowing bylaw, the city will pay back the loan from the Royal Bank over 20 years. While the final interest rate will be set at the signing of the agreement, current indications peg it at 6.09 per cent, making the annual payment more than $580,000.
While that part of the deal would take effect after construction, the initial loan would see the city draw the money at three points during construction at interest-only payments at prime, currently at three per cent.
Comments (1)
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Francias Pillman on Apr 8, 2009 at 12:25 pm
More debt. Raised taxes every year, who cares. This town can't afford anymore useless projects. But hey the majority have spoken. How about you borrow money to prevent the embarrassment of the lack of snow removal this past year? Oh wait thats logic, and might improve access to the city. I can't wait for the next election. But sadly the debt will be there for years, wow what a legacy buckway.