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Council agrees to borrow $2 million for new town hall
District of Elkford council April 23 approved the borrowing of $2 million from the Municipal Finance Authority of B.C. (MFA) for the construction of a new town hall facility.
Council approved Municipal Security Issuing Resolution for Loan Authorization Bylaw No. 802, 2017 to help fund the estimated $2.495 million project that will begin construction later this year.
Because the district does not have any existing debt it falls within the Ministry of Municipal Affairs’ “approval free liability zone” and elector approval, such as an Alternative Approval Process (AAP), is not required, explained district director of financial services Marilyn Rookes in a report to council.
The term of the loan cannot exceed 30 years as per the Community Charter and the bylaw is based on a 20-year term, Rookes noted.
The loan will be at an estimated interest rate of 3.31% and the district’s annual payment (principal and interest) is estimated to be about $140,631.42.
The district must submit the Municipal Security Issuing Resolution to the Regional District of East Kootenay (RDEK) by May 23 in order for a board of directors to vote on consent of the loan on the MFA’s behalf. A vote is expected June 7/8.
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