Council approves borrowing $2.8M for replacement equipment

City council approved a bylaw to borrow $2.8 million on Monday to be used to replace city vehicles and equipment.

The loan, which may be for up to 10 years, required the city to engage in the alternative approval process because the term of the loan is for longer than five years. 

article continues below

However, the city only received 28 signatures from residents opposing the loan, city general manager of administrative services Walter Babicz said. The threshold of signatures required to trigger a referendum on the issue is 10 per cent of the city's registered voters, or 5,846 signatures, he said.

The majority of the loan – $2.3 million of the $2.8 million – is for the replacement of city mobile equipment, with funding for a parks water truck, general maintenance van and  janitorial floor scrubbers making up much of the rest. The bylaw also includes $35,00 for the purchase of a fire services rescue watercraft and $65,000 for a fire services wildland rescue utility vehicle.

City manager Kathleen Soltis said the money borrowed under the bylaw has to be used for the purposes laid out in the alternative approval process. The debt will increase the city's debt serving costs by $327,000 per year, calculated at three per cent interest.

However, Soltis said the actual borrowing rate will be less than three per cent.

"It's a very good rate," she said. "It's a very good deal."

Read Related Topics

Comments

NOTE: To post a comment you must have an account with at least one of the following services: Disqus, Facebook, Twitter, Google+ You may then login using your account credentials for that service. If you do not already have an account you may register a new profile with Disqus by first clicking the "Post as" button and then the link: "Don't have one? Register a new profile".

The Prince George Citizen welcomes your opinions and comments. We do not allow personal attacks, offensive language or unsubstantiated allegations. We reserve the right to edit comments for length, style, legality and taste and reproduce them in print, electronic or otherwise. Comments that contain external links will not be permitted. For further information, please contact the editor or publisher, or see our Terms and Conditions.

comments powered by Disqus

Wearing a face mask POLL

If a local business informed you that you had to wear a face mask before entering, would you?

or  view results

Sign Up For Our e-Newsletter!

Popular Citizen

Lowest Gas Prices in Prince George
Prince George Gas Prices provided by GasBuddy.com