One of the interesting things about this deal to borrow money with the intention that developers would pay it back, is that it would significantly impair our ability to borrow for other projects Langford citizens want. The original plan to borrow up to $25 million would have put Langford up to approximately 77% of its limit. Here’s a quote from an article on the subject.
“Leonard said red flags came up with five developers backing the loan instead of the public. Further, a $25 million loan would put Langford closer to its limit — within about 23 per cent — than almost all other municipalities in B.C.
“Most members are nowhere near their limit. Most have debts of five to 10 per cent of their limit,” Leonard said. “We don’t have a triple-A credit rating without being extremely conservative. We are not treating Langford any differently than any of our 174 members.” “
Of interest is that this has been a problem on the West Shore before. Read the rest of this entry »
