Reworking the Chamber of Commerce loan

Sharon McLeay
Times Contributor

 

The Town of Strathmore has granted the Strathmore Chamber of Commerce more wiggle room in their budget, and on March 1 approved a motion to defer the Chamber’s 2017 payment to the town, to 2021.
A past Strathmore chamber board took out a $30,000 loan in 2013 for a seven-year term and agreed to pay $4,285 per year interest free. That board had trouble meeting payment schedules, but the current board has rebounded and is stepping up to meet its financial responsibilities.
On reviewing the books, the outstanding balance on the loan is $17,144. To make payments and assist the chamber, Strathmore town council granted that all Strathmore business fees of Strathmore Chamber of Commerce members be available to the chamber to place against the loan. A 12 per cent penalty is levied on payments in default.
Strathmore town council wanted to assist the Chamber of Commerce further, as they see the chamber’s current efforts adding benefit to the community. The March 1 decision will free up some money and lend the chamber some cash flow for new events in town.
“All these things are value added for the community. Council is obligated to support business in this community, and with what the chamber has been doing lately, they are providing a business advantage in the community that I have not seen in my tenure,” said Strathmore town councillor Denise Peterson. “It is a value added that pays back far more than that small amount.”
Town administration brought back the details of the loan and two options for council to consider: defer the 2017 payment and keep the $4,285 annual payment until 2021; or, extend the loan over eight years, decreasing the payment to $2,143 annually for the eight-year term and waiving the 2017 fee.
Coun. Bob Sobol commented that waiver would not be the best solution and wasn’t, in his opinion, what the board required or residents support, and the money needed to be recouped in some manner.
“I have never been as impressed with the Chamber of Commerce as I am today. They are serious and on target, they are focused on what I believe a Chamber of Commerce should be focused on. I am impressed with this group of people,” said Sobol. “However, when this loan was made so many years ago, it was a decision made by council with the same idea in mind of council supporting our local Chamber of Commerce. In retrospect, this was not the best decision we have ever made, although it was made with the best of intentions. The fact that this chamber acknowledges that and has been very clear that they want to take responsibility, and this is their issue and they want to deal with it, I would not support waiving the payment.”
Coun. Rocky Blokland gave another alternative.
“The Chamber of Commerce board was looking for a combination of both A and B here. It’s on a revival streak and we are moving forward. The biggest problem the chamber has is cash flow,” he said.
Blokland added that they would prefer a deferment rather than extending the length of the loan and never requested a waiver.
Mayor Michael Ell said supporting the chamber creates jobs and is an investment in town growth.
“If we have a strong Chamber of Commerce, we have a strong business community,” said Ell.