No pain for taxpayers is anticipated with the borrowing of $4.4 million to help finance the construction of a transit hub/innovation centre on Railway St.
In addition to these funds, the $10.5 million project will be funded by a $4.6 million in provincial GreenTrip grant, $1.5 million in Municipal Sustainability Initiative capital funding.
Last night, town council gave first reading to the debenture bylaw, confident the cost of servicing the debt will be covered by rental income from the property.
Katherine Van Keimpema, senior manager of corporate services, says this is a model form of borrowing.
"This debt will not be funded from tax dollars," she told council. "It will be funded form the rental revenue anticipated from the rental property component of the building."
The principal and interest payments on the 30-year debenture are estimated to cost $214,150 per year, based upon a 2.672 per cent interest. Because interest rates do fluctuate and the payment schedule won't be finalized until the date proceeds with the loan, the bylaw authorizes borrowing at an interest rate not exceeding five per cent.
Believing it makes sense, town councillor Alex Reid put the motion on the floor for the borrowing.
"This is not only positive in a financial sense but I think in terms of the overall vision for the town, I think this is a great vision that we need to support and move forward."
The proposed debenture bylaw now needs to be advertised. Residents have the option, within 15 days from the date of the last publication of the notice, to petition council for a vote on the borrowing bylaw.
The green light would be given for the borrowing 30 days after the passing of the final reading. That reading is anticipated to take place on Feb. 10.
The town wants to proceed with the construction of the building this spring.