Budget discussions have led Kincardine Council to decide how expansion work at the medical clinic will be financed.
Mayor Larry Kraemer says the municipality will borrow the funds and the repayment will be likely spread out over 20 years and added onto the health care levy paid by property owners at a level of around 3.5 percent.
Kraemer says this approach shows ratepayers how the municipality has taken on health care costs and is a transparent way of showing them the extra responsibility it now had.
Kraemer says there is often a feeling that the medical clinic doesn’t cost much even though the municipality is investing in it.
Councillor Ron Hewitt says with the extremely low interest rates these days, the timing is right for this approach.
Councillor Randy Roppel wants council to be able to adjust the repayment period if necessary.
Deputy Mayor Laura Haight says this method of financing the medical clinic will free up reserve funds in case the municipality has to contribute to any future expansion of the hospital.
Treasury staff will develop a series of options for council to choose on how to set up the financing plan for the medical clinic.