During Wednesday's town council meeting, council moved one step closer to potentially saving $500 000 in what could be a cost-saving, tax-cutting move.
The official motion passed was a motion to repeal the Borrowing Bylaw No.22-07 through the Repealing Bylaw No.23-09. Government lingo aside, this comes down to canceling pre-planned debt the Town was going to take on for capital projects.
In early 2022, the Town was going to borrow $537 000 over a 15-year period to fund two 2022 capital projects, being sidewalk improvements and the annual asphalt paving program. However, town administration said there is enough capital grant funding in the Municipal Sustainability Initiative (MSI) grant funds for both of these projects. Because of this, the Town no longer needs to borrow this money.
This move is expected to save the cost approximately $125 000 to $150 000 in borrowing costs over the next 15 years. Had the town borrowed the $537 000, it's expected that would've resulted in an additional 0.3% tax increase, but that has been avoided due to the necessary funds being available through the MSI grants.
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