Kincardine to borrow from itself for natural gas study

Section: 
News

 

By Barb McKay

 

Kincardine will pay its share of funds required to complete a feasibility study and business case to bring natural gas to the region, but will borrow the money from itself rather than spend it out of the municipal operating surplus.

 

The cost to complete the study and business case is estimated to cost $255,000 and will be shared by the three participating municipalities – Kincardine, Huron-Kinloss and Arran-Elderslie. Kincardine’s share is $85,000. An additional $110,725 has already been spent for work carried out by AMEC in 2013 with Bruce Telecom to look into the possibility of the company being a natural gas distributor and handling administration. The municipality will get that money back when the sale of Bruce Telecom is finalized.

 

Councillor Maureen Couture said she would rather see the municipality borrow the money at a reasonable rate rather than spend it out of the surplus.

 

“I agree,” said deputy mayor Anne Eadie. “We assume there is a business case to go forward with this so the money we spend will be paid back. It has to be for-profit.”

 

Council agreed take the money from the municipal operating surplus as a loan at a rate of prime plus one per cent.