County councillors took the first step toward adding another $1 million in debt yesterday by passing first readings of two borrowing bylaws.
The bylaws, both of which received first reading unanimously, will permit the county to borrow just more than $1 million to purchase three new graders and one new tandem plow truck that are proposed to be paid back over the next few years.
The graders are by far the most expensive at an estimated $1.2 million, of which $750,000 of the cost will come from the new debt. The sale of older graders and smaller amounts of reserves and current tax dollars will also be used.
The tandem plow truck is meant to help the county keep up with snow clearing demands for its expanding network of paved roads and will add to the county's fleet rather than simply replace aging equipment. This $250,000 purchase is entirely funded with new debt.
The plan to add the new equipment was in the county budget approved in December, but the Municipal Government Act requires that, before a county actually orders such equipment, a borrowing bylaw be passed.
The new debt adds to borrowing the county has already taken on over the past few years, which the county now estimates at $16.6 million, well below the county's near $50-million debt limit.
Coun. Ken McGillis said the recent inclement weather was a clear sign the county needs good equipment to keep the roads clear.
He said he was still concerned about the county’s increasing debt levels and a lack of reserves to fund the major purchases.
Coun. Tom Flynn said the decision made sense to him and the budget process already put it in motion.
“I think that is something that we have to do; it is part of what we approved in the budget.”
Coun. Karen Shaw said she would like to see the county consider a mix of different manufacturers when the graders are actually purchased to get some long-term information about quality and condition.
Administration told Shaw the process will be open to a full tender process and that is one of the options council can consider.
Councillors gave their OK for a new agreement with Thorhild County to give them a bylaw officer once a month.
The new agreement extends previous agreements and is meant as a bridge while Thorhild builds its own bylaw officer program.
The arrangement will give Thorhild one bylaw officer for seven hours per month. Sturgeon will be reimbursed.
Pat Mahoney, the county’s director of protective services, told council the change would have very little impact on the county’s enforcement ability or budget.
