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Northumberland County could pay off remaining loan amount

By Valerie MacDonald, Northumberland Today

Northumberland County Director of Finance Glenn Dees is asking council to pay off, and not re-finance, the remaining cost from the construction of the county headquarters pictured behind him.
VALERIE MACDONALD/Northumberland Today file photo

Northumberland County Director of Finance Glenn Dees is asking council to pay off, and not re-finance, the remaining cost from the construction of the county headquarters pictured behind him. VALERIE MACDONALD/Northumberland Today file photo

NORTHUMBERLAND - 

Northumberland County councillors will be asked Wednesday to take almost $6-million out of county reserves to pay off the remaining loan for building the county headquarters 10 years ago.

The edifice is located next to its long-term care facility near Highway 401 and Burnham Street.

Instead of refinancing the $5,827,100.40, which will be the remaining amount of the loan as of Sept. 28 of this year, the payout will save about $153,000, states a report from the county’s finance director Glenn Dees.

“The county acquired an unsecured loan on Sept. 18, 2007 in the amount of $9,728,500 for financing the construction of the county headquarters building,” Dees’ report states. “The loan is closed, so prepayments are not permissible. The loan is being amortized over a 25-year period at an interest rate of 4.93%, and a term of 10 years maturing on Sept. 18, 2017.”

The refinancing of the county building loan does not qualify under the more attractive Infrastructure Ontario borrowing rates and the availability of using its own funds, through the county’s corporate services reserves built up over the years due to “efficiencies” provides an alternative, the report states. It is recommending the remaining loan be paid out from this source.

Councillors will also hear a presentation from the local health unit at the same council session about the lack of public funding for oral hygiene and asking them to support a motion asking the provincial government to “include oral health as part of the government’s primary care transformation initiatives.”

Part of the written presentation states that about “every nine minutes a person in Ontario arrives at a hospital emergency room with a dental problem but can only get painkillers or antibiotics, and this costs the health care system at least $31-million annually with no treatment of the problem.”

vmacdonald@postmedia.com

Twitter.com/NT_vmacdonald