County learns of debenture of $7 million for itself, two others

County councillors learned Feb. 23 that borrowing $7 million for projects will cost an average of 3.11 per cent over various times for several projects.

The county is borrowing $2 million for ten years at a rate of 2.86% on an installment, and another $1.7 million for 10 years with a portion of the principal amount refundable at the end of the tenth year.

That one carries an interest rate of 3.19%.

Erin and Mapleton have piggybacked on the county’s borrowing power.

Erin borrowed $2.1 million for its Hillsburgh fire station, amortized over 20 years, at 3.19%, with the same terms as the county’s $1.7-million debenture.

Mapleton  borrowed $1.2 million with those exact same terms, also at 3.19%.

That money will be used for the township’s work on its sewage lagoon.

Treasurer Craig Dyer told council there is still some paperwork to be signed, but the funds should be available to the three municipalities by March 6. Lower tier municipalities use the county’s borrowing power because it usually provides them with a lower interest rate because of the county’s high credit rating.