The City of Prince George will borrow roughly $1.78 million, primarily to replace some of its mobile equipment fleet, following a vote by city council on Monday.
The 15-year loan will be used to purchase new mobile heavy equipment, new floor scrubbers and an SUV for the bylaw services department. The floor scrubbers and new SUV will account for $92,000 of the total borrowing.
In a report to city council, city director of finances Kris Dalio estimated the loan would increase the city’s annual debt servicing costs by $186,833 per year, equivalent to a 0.16 per cent increase in the city’s tax levy.
“It’s something we have to do and we need a reliable city fleet to provide the services,” Coun. Brian Skakun said.
The city used the alternative approval process – rather than go to referendum – to approve borrowing the money.
Under the alternative process,Prince George voters opposed to the city borrowing the money had until March 31 to submit a counter-petition to the city. Only 112 people submitted a valid counter-petition, a report to city council said. The threshold to defeat the proposed borrowing was 5,570 counter petitions, equal to 10 per cent of the voters in the city.
“We can see the electorate brought in 112 votes of the 5,570 needed, so it’s a message that there is not opposition to this,” Coun. Garth Frizzell said.
With interest rates expected to rise in the coming year, now is the time to secure the loan, he added. The city borrows from the B.C. Municipal Finance Authority, which provides loans to local governments at rates below the commercial banking sector.
