The city of Williams Lake will use financial reserves in order to reduce the interest it pays on debt remaining from the construction of the Williams Lake fire hall.
Council voted unanimously in support of a plan to pay out a little over $2 million in debt still remaining on the construction of the fire hall, which was completed in 2011.
A loan taken out for the fire hall in 2006 at a rate of 1.28 per cent has a little over $2.3 million still owing on it, and is up for a rate reset on April 9, 2025. The city can request an early repayment option before the rate reset in order to avoid a higher interest rate, estimated to be between 2.95 per cent and 3.45 per cent.
Chief Financial Officer (CFO) for the city Vitali Kozubenko provided a report giving council the pros and cons of early repayment using reserve funds.
While the repayment will result in drawing down the reserves in the short term, the move could save the taxpayers between $895,325 and $1,047,075 at the forecast higher interest rate.
"This community is very fortunate to have the staff they have," said Mayor Surinderpal Rathor, as he thanked the CFO for coming up with the idea for saving the city some money.
The replacement fire hall, relocated from the downtown core location next to city hall, cost the city $7,028,034 in 2011. The city had budgeted $6.5 million for the project and saw cost overruns of $528,035. These overages prompted city staff at the time to develop a framework to help eliminate cost overruns on future capital projects.
This is only part of the city's $4,797,483.87 in total debt owing as of 2025. This is long-term debt borrowed on 20 year terms through the Municipal Finance Authority of B.C.
With files from City: Fire hall overrun no impact on 2011 budget
