That represents a total cost of slightly more than $2.4 million, including interest ($1,650,000 principle and $776,738 interest = $2,426,738).
The latest round of borrowing is expected to add just under one cent to the residential tax rate for Colchester County ratepayers. That means, for a residential property valued at $100,000, the increase could translate into a tax increase of about $9 per year, although this year’s impact will be slightly less because of when the loan payments will come into effect.
The municipality had previously borrowed slightly more than $11.3 million towards its $14 million commitment for construction of the facility, which will cost approximately $49 million to build when final costs are tallied.
Colchester’s share represents 28.38 per cent of the total cost, which is also shared by the Town of Truro, the provincial and federal governments and local fundraising.
After this round of borrowing, which was approved during the last meeting of Colchester council, the municipality will owe approximately $1.2 million of its total commitment.
The Colchester East Hants Health Authority, which leases office space at the RECC facility, is making annual payments of $100,011 over 15 years. The total interest cost for that borrowing, which is paid by the authority, is $480,165.
All figures related to the debenture borrowing are intended as estimates that are subject to change.