Blind River council has approved paying off a loan to Huron Pines Golf Course to save money on the interest that would be paid on the $64,908 loan.
The course is operated by a board of directors but is owned by Blind River which takes out loans on its behalf for improvements.
Paying off the loan was recommended by town treasurer Sue Dent in a report to council Monday evening.
Council pre-approved the renewal of the Facility (4) Huron Pines Golf Course loan, which is up for renewal effective May 12, 2023, for a one-year fixed term, Dent said in her report
However, the remaining balance on this loan is only $64,908.23 and would be a six-month term, which is only available at a variable rate. With the current interest rates at 7.13 percent, the town would be paying approximately $3,400 in interest over six months.
“By paying off the loan, there will be a saving in the operating budget of approximately $6,000 (budgeted interest expense less actual for January through April),” she said of the budget implication of paying the RBC loan off.
Council approved the request to pay the loan off.