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NATION REPAYS OVERDRAFT ON SPORTSPLEX LOAN
Council was called to discuss a discre- pancy in the amount approved for the loan, and the amount that the project did cost when it was finished. Initially, the project was estimated to cost $10,462,082, which is the amount that IO approved for the loan. However, the project drew a total of $11,672,942 by the time it was completed at the beginning of 2023, meaning that The Nation overdrew from the loan in the amount of $1,210,860. In addition, council discussed the conver- sion of the short-term loan to a long-term loan. As of July 2023, the lending rates at IO stood at 4.65 per cent on a 20-year loan and 4.67 per cent on a 25-year loan. However, according to the report, “it is likely that by the time the IO loan closes, the rate will be much higher” due to “yet another recent increase in prime rate (which is now at five per cent) and the Bank of Canada possibly planning another in a month…” IO loans are locked in at the contracted rate for the full term of the loan, rather than be refinanced every few years. Thus, the administration recommended that council obtain quotes from other financial institu- tions prior to locking in the loan from IO. “While the rate for the initial term may be higher, the municipality may gain the long term when the loan is refinanced in a few years if interest rates have dropped,” the report concluded. In the meantime, the report also recom- mended that council approve repayment of the overdraft amount to IO.
Le nouveau dôme sportif de Limoges s’est avéré plus coûteux que le budget que le conseil de La Nation avait approuvé pour le projet. -photo d’archive
CHRISTOPHER SMITH christopher.smith@eap.on.ca
Ontario and had to pay over $1 million back. The Nation municipal council met on August 14 to discuss the status of a pro- gress loan taken out in January 2022 with
Infrastructure Ontario (IO). The short-term loan was meant to fund the construction of the Sports Complex and was meant to be converted to a long-term loan once construction was completed.
The Nation Municipality overdrew from its approved loan from Infrastructure
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