City Looks to Long Term Loans for Some Capital Projects
Prince George, B.C.- There are five different capital projects for which the City of Prince George would like to borrow money to complete.
Council will be asked this evening to approve a method for gaining elector support not for the amount of money to be borrowed, but for the lengthy terms of the loans.
Here are the five projects, the amount to be borrowed, length of term and annual debt servicing costs:
|Project||Amount||Length of Loan||Annual Debt Servicing costs|
|Mobile Equipment replacement
|2nd Ave Parkade Upgrade
|Plaza Parkade Upgrade
|$1,170,000||20 years||$ 77,004|
|Kin 3 Arena Floor Replacement
|$1,050,000||20 years||$ 69,106|
|Willowcale/Haggith Creek Upgrade||$1,800,000||20 years||$118,468|
If all five loans are approved, the City’s debt servicing costs for these projects will be $939,500 in each year of the first ten years until the Mobile Equipment Replacement loan is paid, and $443,926 for each year in the next decade to pay off the other loans.
Under the Community Charter, municipalities are required to have elector support for any loans with terms longer than 5 years.
The two options for gaining that support are a referendum ( at an estimated cost of $60-$70 thousand), or the alternate approval process. Under the Alternate Approval process, 10% of the electorate must register opposition to the project in order to prevent the loan. The cost of this process is under $3,000 with the costs largely for advertising the process.