By KEVIN BERGER, Local Journalism Initiative
RM of Corman Park councillors voted during their October 27 meeting to pass first and second reading on a bylaw authorizing a $1.7 million debenture to pay for the paving of Township Road 374, but lacked unanimous consent to go to third reading.
Division 1 Councillor John Germs, who has spoken in the past against large debentures by the municipality, voted against each reading of Bylaw 53-25. Because of this, the bylaw will have to be re-visited in November.
As noted in an administration report, one of the ways municipalities can pay for major projects is through a debenture, where a certificate of loan is issued and certified by the reeve and administrator.
Debentures are paid back using general revenues and municipalities must obtain approval from the Saskatchewan Municipal Board (SMB) for debenture borrowing.
Recently, the RM completed a paving project on Township Road 374, which cost a total of $2.34 million.
A total of $638,000 was allocated through the 2025 operational budget for this project, while the Municipal Financing Corporation (MFC) of Saskatchewan has agreed to provide the remaining $1.7 million to the RM on the condition that it is paid back annually with an interest rate of 3.6%.
Division 4 Councillor Greenwood called on his fellow council members to approve the bylaw, acknowledging potential concerns around the RM’s spending.
“This project has already been completed and we do have to pay for it now,” he said.
“Paying it out of our operating capital isn’t the road to go. We are getting a good rate here and I would ask my fellow councillors for unanimous support.”