PORT HAWKESBURY: Town Council approved a borrowing resolution totalling $262,500 for its wastewater plant.
During the regular monthly meeting of Port Hawkesbury Town Council on Sept. 7, finance director Erin MacEachern said there is a balloon payment due in October. She said refinancing requires two resolutions: one a temporary borrowing resolution which goes to the Minister of Municipal Affairs for approval to refinance; the second is pre-approval of a debenture giving Municipal Finance Corporation the ability to sell debentures on behalf of the town.
“We are looking to refinance this the same as the financing of the existing debenture so there’ll be no increased cost of debt financing,” she told council.
MacEachern said this will allow the town to continue paying $52,500 annually for the next five years. She said the town will be able to keep the principle payment low.
“Interest rates are very good right now, so we feel this is the best way to move forward,” MacEachern noted.
In response to a question from Town Councillor Jason Aucoin, the finance director said this makes sense.
“From a cash flow perspective, it’s okay for this one – where the interest are low – to pay it off over the five-year period, instead of pulling it all out of your bank account right,” she added. “I absolutely recommend we continue to move forward under the same financing schedule that we had for the original 15 years of this debenture.”
Council unanimously approved both resolutions.