The City of Yorkton has solidified its borrowing to pay for its recently completed Fire Hall.
Yorkton Council unanimously supported a motion at its June 28 meeting which will see the City borrow $7.3 million from the Canadian Mortgage and Housing Corporation over a 15-year term with a fixed interest rate of 3.83 per cent.
The annual payment will be $648,789.
In April Council had authorized administration to advertise and request financing proposals to borrow $7,500,000 over 15 years to fund the construction of the fire hall.
Initially the City received four proposals from financial institutions.
However in January 2009 the federal government introduced a Municipal Infrastructure Lending Program for housing-related infrastructure with financing through CMHC, which was broad enough in scope to cover the Fire Hall.
The project cost of the fire hall was just over $8 million, with the City qualifying for a loan of $7.3 million. The difference of $200,000 could be absorbed by having only a half-year payment this year.
