GUELPH – The Upper Grand District School Board (UGDSB) has approved the activation of a loan of up to $18.6 million at the Royal Bank of Canada (RBC).
This is in addition to an existing $19-million RBC line of credit for the board’s operating expenses.
The new loan will support the construction of the new elementary school in Fergus and was approved during a board meeting on Jan. 14.
The schools’ construction is funded by the Ministry of Education, but the board pays construction costs throughout the process and is reimbursed by the ministry twice a year.
Chief financial officer Glen Regier said the RBC financing will “allow us some additional finance flexibility for that time difference between when we incur the expenses associated with the construction costs and when we receive reimbursement from the ministry.”
Approved ministry funding includes interest costs for loans, he added.
