Pugwash Borrowing Receives County Support
The Village of Pugwash has crossed two hurdles in its bid to borrow money.
The Village wants to borrow $90,000 to pay its final bills for the construction of the Harbourfront Centre in Eaton Park. That total represents extra construction costs for design modifications, unforeseen expenses, and a shortfall of revenue which is yet to be received.
Provincial law requires villages to jump through a few hoops in borrowing. The Village Commission had to seek approval from the electors, which was granted at a recent public meeting. The second step required a loan guarantee from the Municipality of Cumberland. Council granted that yesterday but not without some questions and a little comic relief.
The county’s Director of Finance presented the request and was asked why the village didn’t simply go it alone? Andrew MacDonald said, “I wondered the same thing.” MacDonald said in all his time in Cumberland he could not recall such a request and he added, “Maybe we have never had a village borrow money before.”
Once it was confirmed to be a legal requirement of the province, council agreed to the guarantee. However, MacDonald generated a few smiles when he noted the county collects the taxes for the village so there is no fear the debt will be paid.
Pugwash faces one final challenge as the Minister of Municipal Affairs must give his consent before a loan is issued. The province’s Municipal Finance Corporation is the likely first choice as a lender, but with permission, the village can work with any of the banks.
Tracey Mundle, Chair of the Commission, noted the village anticipated receipt of outstanding federal funding and a substantial HST return, leaving an actual debt of about $48,000. Mundle’s letter to the council said, “We expect to find funding in the next few months to cover this amount too.” That was a revelation as there had been no mention of any pending sources of funding at the public meeting in Pugwash or at any other Commission meeting.
The Village Commission, having twice postponed its October meeting, gathers on Monday when details of any potential funding may be announced.
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