$11M wa­ter loan

The Glengarry News - - Garrynews - BY STEVEN WAR­BUR­TON News Staff

North Glen­garry coun­cil will bor­row up to $11 mil­lion to help pay con­trac­tors work­ing on the Maxville Wa­ter Project.

The town­ship’s Di­rec­tor of Fi­nance/Trea­surer, Kim Champigny, said that the loan is nec­es­sary be­cause the fed­eral gov­ern­ment – which has com­mit­ted to pay­ing $15 mil­lion of the project’s $30 mil­lion price tag – is op­er­at­ing on a claim-based ba­sis.

“This means to get the full $15 mil­lion, you must spend $30 mil­lion,” she told coun­cil at a spe­cial meet­ing on Fri­day af­ter­noon. “The town­ship must pay for costs up­front and sub­mit for re­im­burse­ments on a quar­terly ba­sis.”

She added that the re­im­burse­ments take be­tween six to eight weeks, lead­ing to cash flow short­ages that must be fi­nanced on a short-term ba­sis.

For ex­am­ple, ex­penses paid in April, May and June have not been re­im­bursed. It is pre­dicted that the peak re­quire- ment will oc­cur in July of 2019 with a need of close to $11 mil­lion.

“Right now, we are wait­ing for $3.5 mil­lion,” she said. “We sub­mit­ted a claim on Oct. 5 and we still don’t have money in our ac­count.”

She says the gov­ern­ment has told her the funds likely won’t come in un­til Jan­uary.

For his part, Mayor Jamie Mac­Don­ald has con­tacted Glen­garry-Prescott-Rus­sell MP Fran­cis Drouin to see if he could ex­pe­dite the process. How­ever, the mayor says that the funds still may not come in un­til the new year.

This short-term fi­nanc­ing will re­sult in in­ter­est pay­ments of about $180,000, which will be con­sid­ered in wa­ter sys­tem’s 2019 op­er­at­ing bud­get.

At the end of the project, based on the re­sults of dis­cus­sions with the prov­ince for ad­di­tional fund­ing, the mu­nic­i­pal­ity will be forced to bor­row ei­ther $3.5 mil­lion or $7.5 mil­lion.

PHOTO SDG COUN­TIES

BOWL RAISED: The in­stal­la­tion of a new wa­ter tower in Maxville was capped off with the rais­ing of the bowl to the top of the reser­voir last week.

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