Town to borrow $3M

Shannon LeClair
Times Reporter

 

The 2015 Town of Strathmore budget was brought to council for final approval at the Dec. 3 council meeting. The total operating budget is $28,354,000, and the total capital spending projected is $10,853,000, which will see 29 initiatives completed in 2015.
In the past the town has borrowed money from the Credit Union. Once was for the expense of the Aquatic Centre expansion in 2010, and the outstanding principal as of Nov. 6 was at $1,302,060. The second was in 2011 to purchase a parcel of land adjoining Kinsmen Park, which was sitting at an outstanding principal of $1,418,470.
The budget was prepared on the basis of the loans being paid out before 2015, with unrestricted surplus money. Including interest the amount to be paid is $2,720,530.
“Also included is funding by borrowing $3 million from the Alberta Capital Finance Authority on a 15 year basis at three per cent and that will be directed towards the Lakeside Blvd reconstruction,” said Mel Tiede, director of corporate services.
The Lakeside Blvd road project, which would include surface and underground improvements, was deferred to 2015 after council decided that putting out the tender in January may result in a better price, and will give the contractor more time to get the work done in the case of possible delays.
“We did decide to pay out the two outstanding loans and use surplus to do that. We also felt it was important enough to take on the two major road projects so that we would borrow money at a lower rate than previously. I just wanted to clarify that in case anybody was wondering what we were doing,” said Councillor Pat Fule.
Tiede did mention the loans will be paid off in December and that the town will not be borrowing until mid-year, which would mean saving the interest on that dollar amount for a period of six to seven months.