Some good news for Wood Buffalo just in time for tax season.
Council approved of a motion to pay a significant portion of Wood Buffalo’s total debt.
Financial Services reported the region was in excellent financial shape needing only to pay the committed drawn debt totalling $310 million.
The news delights Mayor Don Scott, who marvels at what the RMWB saves in the early payment.
“We’re an excellent financial shape, we have significant reserves, and we’re going to pay down a large portion of our debt and that’s going to save us $58 million.”
According to Linda Ollivier of Financial Services, the total debt position is $421 million.
Committed drawn debt amounts to $265 million with another $156 million in future yet committed undrawn debt.
Paying $310 million covers the principal, interest, and around $35 million in penalties for pre-payment.
Despite the penalties, the payment would save the Municipality $58 million.
“This is a great municipality in great financial shape.” Mayor Scott said. “As a matter of fact, when I spoke to [Financial Services] they said ‘excellent’ financial shape.”
The Municipality receives funding from alternative sources such as grants, donations, user fees, and capital reserves.
The figures for payment before the end of the first quarter of 2019 come from the Alberta Capital Financial Authority.
However, with the first quarter ending soon, Legislative Services suggested the motion finishes with “as soon as possible, thereafter.”
Council also debated the feasibility plan for Shell Place and the feasibility of an app for public transportation.
Facts and figures
- The Alberta Capital Financial Authority holds the committed drawn debt.
- The committed undrawn debt of $156 million should be paid down by 2021.
- The average interest rate rage is 4.6 per cent, ranging between 1.78 and 8.88 per cent.
