CUI loan extension approved by city council

Chestermere city council approved the first reading of a bylaw providing an extension to Chestermere Utilities Inc.(CUI) on a loan for $554 427.
The loan is in the form of a promissory note and stems from the establishment of the company in 2012 with the promissory note accepted on April 15, 2013.
The extension agreement will include the addition of a 2.44 per cent interest rate to the loan which represents the interest the city could have earned had the money been repaid and placed in a bank account.
“The purpose of the interest rate is to…do it at a cost recovery,” said Chestermere Controller Brenda Hewko.
If this bylaw passes third and final reading by council it will be the second extension given by city council.
The original loan was due in 2016 however an extension was granted giving CUI until Dec. 31 of this year to pay back the loan. If passed, this extension will give CUI until Dec. 31, 2023 to repay the loan.