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Published on: 1/16/2008
Last Visited: 1/17/2008
City administration and finance manager Karen Brown explained proceeds from the $27 million sale, plus $26 million in KMTS Mobility reserves, will be consolidated into a $53-million KMTS prosperity fund.She acknowledged the total includes $15.3 million of long-term city debt, money loaned to the city for civic projects including Kenora Recreation Centre expansion and the new public works operations centre on Barsky's Hill.The debentures are treated as capital assets as the city is essentially borrowing from itself and repaying the loan with interest.Nevertheless, capital allocations to the prosperity fund will be invested with annual returns in perpetuity replacing the current KMTS dividends to the city.Coun. Andrew Poirier stated city council will keep the public informed on how the fund is managed.
"We will continue to provide information as to what we are going to do with the money," he said.