New Tecumseth debt load to climb by $20 million not including interest
Posted June 16, 2025
New Tecumseth will borrow $20,044,877, not including interest, to fund $41,257,842 in capital projects completed in 2024.
- New Town Administration Building - total project cost $22.4 million funded by $12 million from reserves and debenture of $10,193,014 over 30 years.
- Fire Station #3 Expansion - project cost $4 million, with $616k from reserves, and debenture of $3,433,916 over 20 years.
- 12th Line Bridge 12004 Replacement - project cost $4.6 million, with $1.5 million from reserves, and debenture of $3,071,229 over 20 years.
- Large Fire Apparatus Replacement - project cost $2.76 million, with $702k from reserves, and debenture not to exceed $2,064,293 over 10 years.
- 7th Line Road Improvement - $7.4 million project cost, $6.1 million from reserves, with debenture of $1,282,425 over 10 years.
"As of December 31, 2024, the Town’s total outstanding long-term debt stood at $52,050,508. This debt is being repaid through various terms and interest rates. Approximately 87 per cent of the current long-term liabilities are expected to be covered by development charges, with the remaining balance primarily funded through future taxation. In addition, the Town has drawn $16,077,135 in construction financing from Infrastructure Ontario (IO), which is anticipated to be converted into a long-term debenture in 2026," according to the report to council on tonight's agenda.
"For management purposes and to reflect the Town’s future borrowing capacity, the 2025 ARL has been adjusted to reflect the proposed debenture obligations, construction financing, and revenue growth. The remaining ARL is estimated at $10,219,476, which provides the Town with annual debt payment capacity for future capital projects."
