Meaford’s treasurer says the municipality’s long-term debt now stands at $8.2-million which is well within the province’s mandated debt ceiling.
Darcy Chapman says the province allows municipalities to incur long-term debt to pay for infrastructure as long as the annual repayment doesn’t exceed 25% of their net revenue.
“Meaford’s 2016 Annual Repayment limit from the province states that the municipality is using 6.6% of its net revenue to service its debt," says Chapman.
Chapman also says the Ministry of Municipal Affairs’ most recent Annual Repayment Limit shows that Meaford would be able to undertake additional debt of up to $42.7-million at an interest rate of 5% over 20 years.
