Council has decided it will use cash from reserves rather than borrow money to complete sidewalks for the downtown revitalization project in Drayton.
Chief Administrative Officer Patty Sinnamon told council there are three options for funding the work after the township failed to obtain a Community Adjustment Fund grant, but a decision must be made soon.
She explained the Drayton Festival Theatre got a Trillium grant of $100,000, and the township obtained a Rural Economic Development Grant of $163,000 from the Ministry of Agriculture, Food and Rural Affairs, but Mapleton still needs $291,450 to finish the sidewalks and related work.
Further, that work has to be done by March 31; and on top of that, because of other projects, it should be done this fall. She offered three options:
– use reserves that have a current balance of $620,470;
– use the 2010 gas tax revenues that are so far uncommitted; or
– obtain a debenture through Wellington County with repayment to begin starting next year.
She said of the last option, if council chooses it, staff would have to notify the county quickly so the debenture can be issued this fall.
“Time is running out,” Sinnamon told council, adding the committee is meeting this week and wants to consider the streetlight project that is part of the revitalization plan.
She said it makes no sense to install those and then have to rip them up for new sidewalks at a later date.
Councillor Dennis Craven said he is not in favour of options two or three.
Finance Director Mike Givens pointed out the county has no plans for a fall debenture. Municipalities in Wellington can borrow money through the county because its top credit rating gets them all a better interest rate.
Mayor John Green said there may be “other financial situations come up in the next five or six weeks – that may also require funding decisions.”
Sinnamon pointed out the grant money will have to be returned if the work is not done by March 31, and said it would be a shame to lose that grant cash.
Councillor Mike Downey asked Givens, “as a financial person” what he would do.
Givens replied, “I am dead averse” to borrowing when the township has reserves it has been creating over the past three years.
“I would use them and replenish that reserve,” he said.
Green said the township has been putting cash into reserves for the last three years, and using that money would mean no direct impact on taxpayers.
Council unanimously agreed to take the money from its reserves to fund the project.
