STEPHENVILLE, N.L. — FRANK GALE
THE WESTERN STAR
STEPHENVILLE, N.L. — After two years owing little to nothing, the Town of Stephenville is planning to borrow $1.2 million.
Coun. Mark Felix, chair of the town’s finance committee, says taxpayers will get plenty of bang for the bucks council approved to request from lenders.
The money is to be spent on capital works projects and the town's plan is to leverage its borrowed funds so it basically gets eight dollars in cost-shared funding for every dollar it spends.
The town has carried virtually no debt for almost two years. Felix said this money, being borrowed from the Royal Bank of Canada, is at a good interest rate over a five-year term with a five-year amortization.
Projects to be carried out through this borrowing will include West Street paving, Carolina Avenue bridge refurbishment, a well field generator, Ramp area paving, fire station engineering and the town’s allocation for gas tax projects.
Mayor Tom Rose said this year has been significant for capital works in Stephenville. He said council is borrowing for the projects that couldn’t be completed this year as the engineering couldn’t be done in time and it’s too late in the year for paving.
Rose said the projects will serve the town well next year. With the gas tax fund doubled this year, some projects at an 80/20 split with the province and others cost-shared at one-third each by the municipality, provincial and federal governments, this $1.2 million will result in a lot of work.
“Our debt load was pretty well non-existent," the mayor said. "It’s a good day for Stephenville."
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Stephenville to borrow $1.2 million for capital works projects
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