After unanimously passing recommendations at committee-of-the-whole earlier this month, Council will vote June 24 on whether they will take on some $33 million in new debt.
The money, if approved will be split up. The centre police station renovations and the Wilson St. parkade would each receive $15.1 million, fare boxes on transit would be allocated $1.3 million for replacements and new fuel tanks for Guelph’s operations facility would need $1.6 million.
The loan term would be 20 years and will add to the city’s consolidated $96 million in debt and loans, which is down from the nearly $111 million that the city had at the end of 2017. The city has more in its reserve funds than it owes — some $217.7 million sat in the accounts in 2018.
As part of approving the new debt, Council would also need to approve spending $417,000 in 2019 for servicing the new loan, a number that will cost an additional $862,000 every year, according to reporting by Guelph Politico on the meeting.
A repayment schedule found that the city will have paid $43.8 million on the loan once it is fully repaid in 2039 — costing taxpayers over a third of the money borrowed in interest.