New Tec debt grow, record number of homes approved in Alliston
New Tecumseth Free Press Online July 14 2010
In the span of about 11 minutes it took to hold Monday night’s New Tecumseth council meeting – the last until Aug. 23 – the Town went deeper into long term debt, and councillors approved development plans totalling more than 2,800 new homes when built-out in Alliston.
On the debt side, New Tecumseth has a $36 million line of credit with the TD Bank (not the one in Alliston) to pay for expanding the regional wastewater treatment plant on the 14th. This project’s cost is the reason development charges (DCs) increased by about 50 per cent.
It represents the single largest amount the Town has ever borrowed and the plan is to repay the obligation with development charges generated by the thousands of new homes, commercial and industrial construction approved and on the books.
As of Monday night’s decision, the Town has borrowed $32 million from the credit line, and before it’s over, anticipates raising that to $35 million. Once the project is completed, New Tecumseth and TD Bank will lock in the final amount and long term debenture will be issued.
During that same 11 minute stretch, council authorized borrowing about $2 million at a rate of 3.91 per cent from the Ontario Infrastructure Projects Corporation, to pay for the Tottenham Community Centre expansion. The obligation is 20 semi-annual payments of $125,466.85 – total interest is $448,837.
In addition to these new debts, New Tecumseth has six long term loans that cost $1.41 million annually to sevice – maturity range is between 2010 and 2036. The largest component is the $11.59 million issued Sept. 1, 2006 at 5.54 per cent – presently only the interest payments of $642,372 are being made – pay for the multi-use recreation centre in Alliston. That will grow in 2012 to just under $1 million when principle is added. The highest by interest rate is the 1993, $6.3 million debenture for the Alliston sewage plant, at 9.5 per cent. It matures in 2013 and costs $556,700 to service.
The other new record set by council Monday night, is on the residential development side where three separate proposals were approved including 1,875 new homes at Hwy 89 and 10 Sideroad and the 14th Line (Belterra); 770 new houses in west end Alliston (Rizzardo Bros); and 157 new homes east of Boyne Street (Mattamy Homes).
Collectively they represent the single largest approval of new homes in New Tecumseth, and estimated to add more than 7,000 people to the population. Built-out the developments will generate more than $90 million in development charges, and millions more in building permit fees.