At the Sept. 12 COW meeting Trustee Bitten attempted to claim that the interest rate on our loan of 3.5 million with RBC at 3.95% is the same as with municipal financing.
This is absolutely not true.
The current rate for a 10 year loan quoted by Municipal Finance Authority is 2.45% not 3.95% RBC.
This is a savings of 1.5%! Why would we expect landowners to pay more than they need to? They only way we can get reduced financing rates through the MFA is if we become a Service Area of the Comox Valley Regional District. In addition to reduced borrowing costs Union Bay would also be entitled to Infrastrucure Grants. Both Cumberland and CVRD recently had 75-80% of their Water Treatment Infrastructure subsidized by using both MFA (which is below prime) and Infrastructure Grants!
This is why in 2017 I made the motion to send a letter to the CVRD to get the funding to examine the pros and cons of becoming a service area! This motion passed. Elliott, Kaljur, Jacques voted yes and Loxam, Bitten voted “No”.
The longer we delay the more money landowners will pay in interest. It really is that simple.