Latest Letter to the Editor titled: I Don't Understand

     During the Municipal election campaign last October the question was asked repeatedly about what would happen to our town's current debt obligations related to Development Charges if the expected funds did not come in due to the poor economic conditions. We were assured that would not happen.
     In March of this year we became aware that the town was working on contingency plans to cover shortfalls in development charges brought on by the economic slowdown.
I argued at the time that borrowing or issuing credits against future development charges has a cost to residents in that it takes away from the value of future development charges. I got the usual response: fiscally conservative councillors said I was: "bang on." others fell back on: "you just don't understand."
     This week at council, a developer requested that he not be required to pay a portion of his development charges at the usual time but be allowed to defer payment of $7 million dollars. In essence the Town will pay now and will be repaid later when the homes are closer to being built. This will allow the developer to "borrow less money." No mention of the fact that the town will pay interest on this money in the meantime.
     As I may not "understand," perhaps it would be prudent to consider what the person who has the best understanding of the town's current financial situation, thinks. That would be Paul Whiteside, New Teumseth's retired CFO, and current Ward 3 councillor. "We are not a financial institution ... we have expended that money ... and we have to make those principle and interest payments," he said at council Monday night.
To those who would charge that I again "don't understand," I agree with you. I don't understand why the Town should pay carrying charges on debt that the developer is responsible for in order to put him in a better financial position.
     I and many others are concerned about the Town's debt and I ask that council follow Mr. Whiteside's direction and not use the Town's resources to essentially lend money at our expense to developers.
Rob Holliday
Alliston