Vermilion’s portion of funding toward the completion of the Vermilion Broadband Initiative has been completed, according to the town.
They say the funding was completed without borrowing or taking on any debt.
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“This is a positive financial story for Vermilion,” said Shannon Harrower, Town of Vermilion CAO. “The broadband project was completed and we were able to do it without taking on $2.4 million in long-term debt or the associated interest costs that would have impacted local residents for years to come.”
In 2022, council authorized administration to borrow up to $2.4 million for the initiative as the town’s portion of the project, spearheaded by Alberta Broadband Networks, would cost more than $10 million.
Administration was able to secure about $600,000 in grant funding from the provincial government, reducing the municipal funding share to $1.8 million. That remaining balance was then funded through general taxation funds, spread over the course of three years between 2021 and 2023, to avoid impacts on taxpayers.
While the funding was property authorized and recorded, the original debenture bylaw was never formally closed out. As a result, administration will bring forward a bylaw repeal to council to remove the unused borrowing authorization.
“Good governance means keeping our bylaws current and accurate,” said Mayor Robert Snow. “We’re starting the new council term by looking at next year’s budget. As part of that, we want to ensure our records clearly show this project was paid for without the debt that was originally contemplated.”
Administration is now working on enhanced financial tracking and communications processes to ensure clearer reconciliation between funding authorizations and spending methods for all future projects.
“We have some incredible leaders in our organizations and we’re all working to find opportunities to strength our processes, close administrative gaps, increase transparency and be accountable to our community,” said Harrower.
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