Mountain View County council has passed first reading of a bylaw that calls for the municipality to lend Mountain View Seniors' Housing (MVSH) $3 million to cover re-financing costs.
The move came by way of motion at the Sept. 4 council meeting. On Aug. 28 MVSH made a request that the municipality enter into a loan agreement.
MVSH owns and operates seniors' facilities in the region. Its board is made up of representatives from area municipal governments.
In a presentation to council last month, MVSH chief administrative officer Sam Smalldon told council, “MVSH’s request is for a $3-million loan over a 20-year period. The issue for us is to help us address our cash crunch and overdraft situation.
“This is a request to refinance our capital. This is a refinancing question for us and a request to you. We have our overdraft almost fully used by the end of December.”
The bylaw calls for the loan to be repaid over a 20-year period and includes a repayment schedule. The source of the loan will be from reserves.
The bylaw also includes a section stating that before signing of the loan agreement, Mountain View Seniors' Housing “will provide a certified motion of their board of directors authorizing the loan and confirming that the loan will be guaranteed through their right to requisition their member municipalities.”
The bylaw must now be advertised for two weeks before coming back to council for further consideration.
Councillors also passed first motion of a second related bylaw. It calls for the county to borrow $3 million from the Alberta Capital Finance Authority.
According to that bylaw, those funds would be used for three county projects, $1.1 million for Acme Bridge project, $1.3 million for Bergen Road Bridge project, and $600,000 for base stabilization road work.
Reeve Bruce Beattie, who is the chairman of Mountain View Seniors' Housing, did not attend the Sept. 4 council meeting
