“The municipal has 15 active debentures on the books at this time.” Treasurer Crozier said.
The total debentures amounted. 1,006817 dollars payment, and the amount outstanding was $8,660.660, with the date of maturity for the debt coming
He also said Olmstead Jeffrey Lake Road was coming to be budgeted in 2023 with $2, 500,000, which he estimated that would be a 113,000 payment
He said that principal payment, which was paying back the debt and owning the equipment, which he estimated at $686,000.
He said the interest lay in the 4.7% range.
“How is the amount we’re allowed to carry in debentures calculated?” Mayor Nicholson said.
“It’s called the annual repayment limit, it’s based on the 1,617,000. They’ll come out and say it’s based on the previous years limit. How it gets calculated by own-person levy. It basically comes out to the bottom line that says ‘this is how much we think you should pay’. The last time we did it, I think it came out to 1.7 million, as debentures come in, that may change. We just spoke to two items that were roughly 326,000, but you should note that are amounts coming off every year.”
“I understand the province does recognize municipalities carry debt and offers some incentives.” Mayor Nicholson said.
“Debt is a viable opportunity, and it has impact on the financial health.” Crozier said. “If a municipality has no debt on its book and apply for grant after grant, it doesn’t look good on their debt financing. If we use debt, it looks like we are using every available option to finance.”
Councillor Olmstead asked if interest rates could be added, to show the interest adding from 4,27, to 4.7.
“I could probably add it in brackets.” Crozier said. “Some of them were lower than that. Some had much higher than that. Some have really fluctuated over the years.”
There were no other questions on debentures.
