Credit line

Rule change allows airport authority to continue to use $1M line of credit

At its regular meeting on May 9, the board gave three unanimous readings of a bylaw amendment that would extend the line of credit repayment deadline from April 30 to October 31.

The Moose Jaw Municipal Airport Authority can access its $1 million Line of Credit (LOC) for an additional five months after receiving the official green light from City Council.

At its May 9 regular meeting, the board gave three unanimous readings of a bylaw amendment that would extend the line of credit repayment deadline from October 31 to April 30. The amendment went into effect immediately as there was no opposition from council.

The amendment ensures that the airport authority can continue to access funding for its $3.2 million runway capital improvement program.

At a March 2021 meeting, the board agreed to provide a financial guarantee to the authority to access a $1 million line of credit from Jameson Gilroy and B&L Livestock Limited (JGL). The authority can use this money as cash flow during its project to extend and rehabilitate the runways and taxiways.

None of the money came from city coffers, but the million dollars did — briefly — count toward the municipality’s debt load.

Greg Simpson, chairman of the Moose Jaw Municipal Airports Authority (MJMAA) board of directors, said in a letter to the board in April that the organization needed an extension of interim funding since its surfacing contract ran out. was “significantly delayed” last year.

The authority had planned the project to start on May 7, 2021 and be completed in six weeks, he said. However, the authority did not start work until June, while the paving and painting project was not completed until October.

Additionally, power, signs, and grass will not be installed until June 30, 2022, while federal government grant funding has been delayed for at least 90 days due to end-of-term financial delays. year.

The total cost of the trail project is $3.2 million, including $2,199,990 from Ottawa, $500,000 from the City of Moose Jaw, $275,000 from the province and $275,000 from administration herself.

The next regular council meeting will be on Tuesday, May 24.