Penetanguishene council has authorized the issuing of debentures for the $9.4 million outstanding on the Philip H. Jones Pollution Control Plant and $3.8 million of the Main Street reconstruction project.
Financing for the $9.4 million will be undertaken through a 30-year loan with an interest rate of 3.46 per cent per annum. Semi-annual payments of $252,686 will be made from July 16, 2018 to July 16, 2048.
The pollution control plant recently received $28.2 million worth of renovations, which included a new headworks facility, removal and replacement of the chlorination system, a new biosolid thickening and process building, addition storage facilities, improved air and noise controls and an increase in capacity.
The renovations improve the facilities capacity from 4.5 million litres per day to 5.25 million litres per day.
A 30-year loan with an interest rate of 3.46 per annum will also be secured for the estimated $3.8 million remaining on the Main Street reconstruction project. Annual repayments are estimated at $204,560 beginning in 2019.
The total cost of the reconstruction project is estimated at $10.7 million. Of that, $3.5 million was paid via a small communities fund grant, $1.3 million through taxation, $1.05 million through water and wastewater rates, $502,955 through development charges and $782,874 through reserves.