The Town's debt

So now we have it - a number that we can all understand - a whopping $15 million, and the cost to service that debt is $1.5 million. Now debt is good it allows us all to buy the things we may not have been able to get in one deal if we had to save and pay cash for it. But the disturbing report about the report is the comment from the CAO that long term per capita debt is rising because of some extra funding of the debt from non property tax revenue. So folks it comes down to this the big revenue sources (our sources) are being siphoned off before they get to the bottom line, by the Council. Revenue from HOLDCO and the Northam Industrial park is going to get more debt but we don't notice because our taxes don't go up.

The point to be learnt by this Council is simple HOLDCO and Northam Park revenue is not Council's play money - it's our money and must go the bottom line before being fed into pet projects. True accounting demands it. Use the revenue to reduce the taxes and then decide to pay down the debt.