O’Leary council has decided to purchase a new tanker for the town’s fire department.
While tenders still have to go out, estimated cost for the new vehicle will be $250,000, which will be financed over the next 15 years.
Payment for the new tanker will be cost shared between the town and the local fire district committee. The fire department will be donating $25,000 towards the tanker as well.
It’s a big purchase for the town, especially coming on the heels of council helping the fire department purchase a new pumper in 2019.
“Talking to the fire department, it looks like the next purchase for the next truck in this community, will be 20 years from now,” said Mayor Eric Gavin.
Councillor Joey Dumville made a motion for the town to purchase the new tanker for $250,000 and Councillor Judy MacIsaac second the motion. The motion passed unanimously.
Council has also approved a request from the Community Seniors Co-operative Ltd (CSCL) to support their work in building a new community care facility in O’Leary.
CSCL has asked council to contribute $275,000 towards the project. Council does have roughly $75,000 in their budget they can use this year, while the rest would have to be financed, with the town making payments over the next four to five years from their community development budget, somewhere between $50,000 to $55,000.
The town’s CAO, Bev Shaw, explained since the CSCL requires the money up front, as to be counted as equity when the group approaches the Canada Mortgage and Housing Corporation (CMHC) for the facility’s mortgage, the town will have to borrow the remainder of the funding. Ms Shaw also explained the CSCL requires the money to be in place to help leverage further funding from the provincial government.
Ms Shaw said council would have a letter of intent agreement in place with the CSCL that would guarantee them the town would give them the $275,000. However, the town wouldn’t have to supply that letter until the group was ready to apply for the CMHC mortgage.
“I’m not sure when that would be, but that money would stay there, not drawn down, until they went to apply for the mortgage,” she said.
The town will also require approval from their bank to borrow the money.
The approval does mean the possibility of no new community development in the town for the next five years, but the proposed multi-million dollar facility would generate tax revenue for the town, said Ms Shaw.
“The estimated cost for this new facility is $8.1 million, so you figure $275,000 is a good investment on a $8.1 million (facility),” said Mayor Gavin.
Councillor Joey Dumville made the motion to approve the request with Councillor Darrel Wood seconding the motion. The motion passed although Councillor Kevin Maynard voted against the request as he felt the entire council should be presented to discuss the matter. Councillor Valene Gallant and Darren MacKinnon were absent from the meeting.