Higher interest rates have caught up the District of Houston so it’s dipping into its 2023 surplus to pay off its new street sweeper instead of continuing to make financing payments.
Bought new last year, the 2022 Elgin Pelican street sweeper cost $338,000 and is being financed through the Municipal Finance Authority of B.C. which can obtain favourable rates for local governments in B.C.
The loan was 1.4 per cent but the rate has now grown, reported District finance director Jennifer Larson to council.
“Due to increases in prime lending rates, the interest rate on the equipment loan is now 5.55 per cent which is higher than what the District is able to generate on funds held in short-term deposits,” she said in a memo discussed when council met Oct. 16.
In other words, the District is not earning enough from its short-term deposits to cover the sweeper loan’s interest rate.
But now the District has far more money than first anticipated from charging for the use of its bulk water and sewer stations and it is also earning more interest from other monies it has in the bank and can easily pay off the remaining $203,706 owed on the sweeper, Larson told council in expanding on her memo.
She said the District had conservatively budgeted to collect $250,000 from bulk water sales and another $250,000 in sewer station charges this year but instead has earned well over a million dollars.
“The other thing is we’ve gotten quite a bit more investment income than we had budgeted,” Larson added.
“Because our interest rates have been very good on our investments and with even just the money in our general operating account, we’ve generated quite a bit of surplus there,” she said.
Councillor Troy Reitsma did question using water and sewer income to pay off the sweeper, noting that revenues were originally targeted for specific District accounts for future water and sewer expenses.
But he seemed satisfied when told the revenues for water sale and sewer station use were far more than first anticipated.
Community hall lease approved
The District of Houston is leasing portions of the community hall to the Dze L K’ant Friendship Centre so that it can continue programming during the estimated 16 months it will take to demolish its inadequate building and replace it with a new one.
A demolition/construction start date has not yet been identified but is scheduled to begin next year.
The lease details include ….
- Kitchen rental each Wednesday at a nonprofit-discounted rate of $100 per day.
- Main hall rental for 1.5 hours each Wednesday during the winter months at a nonprofit-discounted rate of $25 an hour.
- Expanding on the past lease of Room 102 of the hall to now operate a licensed childcare program. The annual lease rate would be $1.
Council was told the childcare leasing arrangement meets all necessary guidelines and licensing approvals.
“Although both the friendship centre’s after-school program and the [District-of-Houston sponsored] ballet classes will be scheduled concurrently, staff does not anticipate any conflicts over space allocation, and no other conflicts have been identified at this time,” a memo to council from leisure services director Cassie Henrickson indicated.
Hatchery request backed
The Buck Creek Canfor Hatchery and Nature Centre operated by A Rocha Canada now has the District’s backing in applying for a $9,910 grant from the Pacific Salmon Foundation for needed new equipment and maintenance.
The equipment list includes a backup gas generator to keep its equipment operating during power outages and a replacement water pump to bring water into the hatchery’s recirculation system.
Also needed are hipwaders and boots for staff and volunteers.
The hatchery has already lined up $11,500 from other grants and in-kind contributions to help meet its equipment and maintenance goal.
New gear for firefighters
The District of Houston Volunteer Fire Department hopes to purchase 15 sets of protective gear for wildland firefighting if its grant application to a program run by the Union of BC Municipalities is accepted.
It also wants eight nozzles for fire hoses and estimates the total package would cost $30,000 which is the maximum grant amount.
If successful, this would be the second upgrade in protective gear for the fire department this year.
Liquor licence wanted
Council so far has no problem with Houston Link to Learning’s application to provincial authorities for a liquor licence for the bowling alley lounge of the Pleasant Valley Plaza.
The entertainment centre had been closed until its purchase by the non-profit agency early last year. Various venues inside have been brought back into operation since then.
District chief administrative officer Michael Dewar told council that staffers don’t think traffic, noise, parking or impact on the community will be a problem.
“Venues for special events and recreation activities can contribute positively to the economic development of the downtown core,” a memo to council indicated.
People and businesses within 100 metres of the Plaza building will now be contacted for their opinions and there will also be the opportunity for other members of the public to comment on the application.
Mountain bikers propose improvements
The Houston Mountain Bike Association has the council’s support in applying for a provincial grant to upgrade and improve its trail network at Mount Harry Davis.
The project plan includes …
- rebuilding the Lower Padawan, Chutes and Roots trails as well as building a new uptrack from Parking Lot 1.
- new signs
“The addition and upgrade of new trails will attract new residents, amplify tourism and increase tourism dollars spent in our town,” association secretary Courtenay Crucil noted in a request letter sent to council.