Town recycling South Albion Street pavement

Raissa Tetanish
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AMHERST - Permanent financing for two current projects in the town was approved is now set, after the Town of Amherst made a motion to borrow almost $3 million from the Nova Scotia Municipal Finance Corporation.

AMHERST - Permanent financing for two current projects in the town was approved is now set, after the Town of Amherst made a motion to borrow almost $3 million from the Nova Scotia Municipal Finance Corporation.

"Back when council approved the capital budget, it also approved borrowing resolutions with respect to the Amherst stadium and the South Albion Street project," chief administrative officer Greg Herrett explained Thursday morning during a special council meeting. "Portions of both those program are financed through debt, so this recommendation is for the permanent financing of those projects."

The CAO's recommendation, which council adopted and moved unanimously, is for a pre-approval of debenture issuance subject to interest rates as required by the corporation. The debenture being requested is $2.942,240.

The majority of the request, $2,170,240, is for the stadium renovations. It would be financed over 20 years.

The remaining $772,000 is for the reconstruction of South Albion Street, with amounts being broken into sanitary sewer, storm sewer and paving of the streets. The reconstruction project would be financed over a combination of 10 and 15 years.

The amortization periods relate to the estimated useful life of the assets.

Deputy Mayor Terry Rhindress questioned Herrett as to how long the project would take before it was complete.

"They're milling the existing pavement now, and staff informs me that the project should be complete by mid-September," responded Herrett.

Out of the two processes left, the milling and paving, one can be done in both rain or shine, the other can't.

"Paving requires a little bit of dry weather, which we seem to be having a little trouble getting," Herrett said.

During the milling process, the town is recycling or reusing what comes off South Albion Street for another project on the go - an additional parking lot behind the Amherst Stadium.

Warm weather is also needed in applying those materials to the parking lot.

In regards to borrowing almost $3 million, Coun. Ed Chitty wanted to make sure the town is still within the guidelines of Municipal Affairs' borrowing percentage.

Comparing Amherst and other municipalities, Herrett says the town's ratio is "healthy."

"Our estimate is that our total debt service after this project is online, excluding water and the amounts that flow through the CJSMA, is about $936,000 a year. That puts us in approximately the 6.6 per cent.

"As a benchmark, Service Nova Scotia and Municipal Affairs starts to throw the flags up when that number approaches 15."

rtetanish@amherstdaily.com



Organizations: Nova Scotia Municipal Finance

Geographic location: South Albion Street, Amherst Stadium, Nova Scotia

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Recent comments

  • Huge
    January 18, 2010 - 11:04

    Maybe its just me.

    Here - we rip up the busiest street in the county - in the busiest part of the year, and it takes all these months.

    Wouldn't it have been more appropriate to have the RFP include a requirement that the work on the street be done OVERNIGHT instead of during the day?

    Most cities would not interrupt a commercial area during the day, night time makes more sense. Less traffic, most commercial establishments closed and the least number of people inconvenienced.

    At least it makes sense to me that way.

  • Dave
    January 18, 2010 - 10:44

    I've seen construction in many different communities and I can say one thing. Amherst screwed up. This work should have been done in the overnight hours, and there's no way it should have taken as long as it has. 1.2 million? The choosen compnay should have been working 24/7, with the larger, more inconvienant projects going at night. I'm sure it's cost residents and tourists thousands in broken ball joints, struts, shocks, and in at least one case I witnessed, damage to a huge camping trailer.