There is a link between the Hydro need for a bigger line of credit and the wave break being built for the LaSalle Park Marina

News 100 redBy Pepper Parr

March 24th, 2020

BURLINGTON, ON

 

City council will be meeting this afternoon for two Special Council meetings that will be held back to back.

LaSalle PArk MArina as it looks today - 219 slips with wave breaker and docks thathave to be brought ashore every winter.

LaSalle Park Marina before the new wave break was approved.

One of the items on the agenda for the second session is giving Burlington Hydro permission to negotiate a bigger line of credit with their bank. The credit limit at the moment is $10 million.

They want to take it to $20 million.

One of the reasons for going to $20 million is the concern that some of the large hydro accounts may not be able to pay their hydro bills due to their own cash flow problems.
The decision to increase the line of credit is prudent.

Joan Ford, the city's Director of Finance knows where every dollar comes from and where every dollar gets spent.

Joan Ford, the city’s Treasurer knows where every dollar comes from and where every dollar gets spent. She would have preferred to see reserve funds kept as reserve.

While they won’t say as much; both City manager Tim Commisso and Treasurer Joan Ford would have liked to seen more in the way of prudence when city council decided to draw down $4 million that was in the Hydro Reserve account a number of months ago.

The uncommitted balance in the Hydro reserve fund at December 31/19 was $8,658,790.

Council decided to pull $4 million out of the reserve fund to pay for the wave break that was needed at the LaSalle Park Marina

Using public money to pay for the wave break was a contentious issue at the time – council took the position that a city on Lake Ontario should have a marina and a wave break was necessary.

Commisso and Ford are old hands at things municipal – they treat reserves the way some treat family heirlooms – you never let them go.

Commisso stare

City manager Tim Commisso.

I could have sworn Tim Commisso was experiencing an upset stomach when the decision was made to raid a reserve account.

It will be interesting to hear what they have to say in the way of comments this afternoon when council approves the decision to approve the increase in the line of credit.

Related news story:

Hydro asking Council to approve a bigger line of bank credit

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4 comments to There is a link between the Hydro need for a bigger line of credit and the wave break being built for the LaSalle Park Marina

  • Perryb

    These are strange times. Decisions must be made fast, with limited information. Our elected reps are what we’ve got. Brilliant decisions will be made, and so will bad ones — in hindsight. Too early to be complaining.

  • Brian Jones

    I have objected to raising the hydro reserve for the wave break.
    I believe this year imparticularly is not necessary to raid it at today’s meeting.
    The reserve is only 8 million prior to the 4m for wave. Leave it at 8. . What is ahead of this reserve is unknown during this covid 19 crisis

  • A topic for town hall. We are already talking to gov on need for restrictions on hydro reserve uses as a result of this Council decision. Some additional credit was probably necessary due to the economic outlook BUT!!!

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