At the council meeting on Tuesday, Dec 3rd 2013, Council
will consider reading bylaw 1326 2013 Loan authorization for $5 million to
cover the town’s portion of the New Building Canada Fund (NBCF) grant
application. I would like council to consider delaying the reading of the bylaw
until after the staff has been given the opportunity to investigate alternative
sources of funds to satisfy the town’s contribution under the NBCF grant. Only
then will council have the data to make informed decisions on the amount and timing of any short-term borrowing that may or
may not be required.
Step 1: Reallocation from the 5-year plan capital budget
Staff should identify all of the water, sewer and road
projects from the list of capital projects in the 5-year plan and determine if
those projects would qualify under the NBCF. These projects could then be added
to the list of NBCF projects and the capital re-allocated to satisfy the town’s
contribution for the NBCF.
Step 2: Reserve Allocation
If insufficient funds are identified in step 1, then the
staff should determine if the addition of funds from the water, sewer and road
reserves would be enough to satisfy the town’s contribution to the NBCF.
Step 3: Leasing and short term borrowing
After steps 1 and 2 have been exhausted then the staff
should determine how much capital could be preserved and reallocated to the
NBCF by the use of leasing and short-term financing for larger capital items such
as trucks, graders and plows in the 5-year budget.
Step 4: Long term borrowing
After steps 1,2 and 3 have determined how much of the town’s
contribution can be funded by reallocation of funds from existing capital, council
will the be able to make an informed decision as to the amount and timing of
any long term borrowing to satisfy the town’s contribution under the NBCF grant
application.
The opinions expressed in this Blog are my personal
opinions and may not represent the opinions of other councillors nor the opinions
of council.
