News release

Province Helps Municipalities Save Money on Borrowing

Service Nova Scotia and Municipal Relations (Oct. 2000 - March 2014)

The province has approved $137 million in borrowing to secure lower interest rates for municipalities for the coming year, John MacDonell, Minister of Service Nova Scotia and Municipal Relations said today, May 12, to members of the Union of Nova Scotia Municipalities.

By providing financing through the Municipal Finance Corporation, the province will save municipalities up to $7.5 million in interest over the next 10 years.

"We want to ensure that municipalities are able to borrow at the lowest possible cost because we know that, regardless of the tax, it is paid by the same taxpayer," said Mr. MacDonell. "The Municipal Finance Corporation makes it possible for municipalities to receive financing that they may not receive from financial institutions, for important projects that create local jobs and stimulate the economy."

The Municipal Finance Corporation will provide municipalities with low long-term interest rates on capital projects such as wastewater treatment plants, water services, hospitals, road improvements and buildings.

Along with providing low interest rates for municipalities, the corporation provides short-term financing for completed capital projects, administration of Federation of Canadian Municipalities Green Fund loans, and municipal workshops, sponsorships and development of financial best practices.

In addition to these savings to municipalities, in April, the province mandated using energy-efficient, LED lighting on roads and highways provincewide. When combined with reduced maintenance costs, the estimated annual savings of this switch is about $18 million.

For more information on the Municipal Finance Corporation, visit www.gov.ns.ca/nsmfc/ .