Municial Treasurer Cécile Maisonneuve presented council with a proposal to pay for the new Hydrovac truck without having to worry about interest payments. The truck cost more than $550,000 when purchased in March this year.
The original plan was to get an Infrastructure Ontario loan with a repayment period of five years at 1.77 per cent interest each year. The total interest payment would amount to $25,553.50.
Maisonneuve noted that the municipality has almost $2 million in its general sewer reserve fund and almost $550,000 combined in its St-Isidore and Limoges water reserve funds.
She proposed the municipality borrow the money for the Hydrovac truck from itself using the reserve funds and avoid the interest payment. The internal loan could be paid back through future municipal budgets and the money saved would equal the price for a new utility vehicle for the water and sewer department that is included in the proposed 2022 budget plan.
Council approved Maisonneuve’s proposal.
