Follow-up on Capital Expense Regarding Municipal Buildings

Questions were recently raised regarding the costs associated with the construction and subsequent operations of Town Hall, which includes our Fire Department and local RCMP detachment. The information below is intended inform residents.


How much did Town Hall cost?

2010        $ 2,830,183.07
2011         $ 8,885,767.60
2012        $ 2,124,795.59
2013        $ 400,965.08
TOTAL    $14,241,711.34


How was Town Hall financed?

                                             Total           Annual Payment

Capital out of Revenue       $ 250,671.34           Nil
2010-2013 Gas Tax             $1,682,040              Nil
Grant from FCM                 $1,000,000              Nil
Borrowed FCM @ 2%        $9,223,000           $564,000
Borrowed MCBB (2014)    $2,086,000          $148,000
Other (from RCMP Rural/Hwy)                      $199,932
                             Net Annual Cost to Town    $512,068


What are the Operating Costs of Town Hall?

  • Current operational costs are in line with what was presented during the design and construction phase.
  • It is difficult to compare old facilities vs our new facility as there are a number of new items within the facility that were not present before (i.e. Geothermal, Generator).
  • The new facilities have more space to meet the current and future needs of the municipality, where the old facilities were undersized and in need of significant upgrade.
  • No Upgrades and minimal maintenance was done on the old facilities in the 3 – 5 years leading up to moving into the new facility.


Other Financial Facts about Town Hall?

  • The net annual cost reduced the capital out of revenue budget amount, and there was no increase in property taxes to pay for this project.

We received a loan and grant from the Federation of Canadian Municipalities under the Green Municipal Fund, which has low interest rate of only 2%. The Grant had additional savings, including:

–  $130,800 in Fees/Commissions not having to be paid to Municipal Finance Corp.

–  $1,520,000 in total interest cost over 20 years at interest rate at time

–  $1,000,000 grant, reduced borrowing cost and interest payable

As a result, the town will see a total savings of $2,650,800 over 20 years, or $132,540 per year.


  • Loans are for 20 years and the RCMP Lease and Rent is also for 25 years.
  • Significant capital improvements were required in the 3 older building in the range of $5 – 6 million or more.  This would have resulted in new debt cost of $400,000 to $500,000 to service the capital improvements of our old buildings with no new space being obtained.