BWG’s debt: good way to go or cause for concern?

By Meade Helman AWARE News Network January 21 2013 

The biggest item on the agenda was the Finance Department’s report on the Town’s Debt. Councillor Lamb and Councillor Simpson are both concerned about how frequently the town uses debt and the fact that there are no contingency plans in case cash doesn’t come in or rates increase. 

Mayor White lectured the room on the importance of debt and how you only could buy big things by borrowing. He made it clear he was not only unconcerned, he thought it was a good way to go. Especially since the debt of things like the Rec Centre comes out of Development Charges.

EDITORIAL COMMENT: I have been told that it takes $4 mil to service our debt  on an annual basis. That is over 1/5 of the annual budget. The economy slowing and the DC money not roiling in is a real possibility. Look at the towns in California that had that same philosophy. They now have libraries with no books and police stations with no police, and bridges to nowhere. Whether it comes from taxes or development charges, it is all coming out of our pockets and our council should be frugal. You can sell a house or a car if you debt burden gets too great. What do you do with Dissette or the rec centre?

–Deputation by Sierra Planning and Management on stimulating industrial development by eliminating development charges for  a period of time. Local business man Ken Simpson praised the idea.

EDITORIAL COMMENTS: Aren’t those the funds we are using to pay debt obligations?

–Council held two Special Meetings since November and three in December.

EDITORIAL COMMENT: Why are we having so many lawsuits and HR problems? Why are they having more closed door meetings than council meetings? Do we have that many lawsuits and HR problems?

 On the plus side, the sound system was adjusted so observers could hear the proceedings. After years of residents’ complaints, the new clerk, Rebecca Murphy, took action. Thank you Ms. Murphy.