Two bylaws that would help O-NET obtain financing to complete its fibre-to-the-premises network were given first reading with a few amendments during a council meeting on Feb. 24.
Two bylaws that would help O-NET obtain financing to complete its fibre-to-the-premises network were given first reading with a few amendments during a council meeting on Feb. 24.
To grant O-NET financing, council needs to pass one bylaw authorizing the town to borrow $8 million from the Alberta Capital Finance Authority. The second would allow the town to lend the money to the Olds Institute for Community and Regional Development, which owns Olds Fibre Ltd.
O-NET is the service provider and marketing brand for Olds Fibre Ltd.
Coun. Mary Jane Harper suggested two conditions on the bylaws. The first would require the town’s director of corporate services be appointed to the Olds Fibre Ltd. board.
Harper, who noted that she was satisfied with O-NET’s presentation on its need for the loan the week before, said she made the proposal due to the size of the loan being sought.
"I felt that it was important that our corporate service director, finance person, be part of that board that basically spends that money," she said.
Harper added that she wanted more accountability from O-NET and a greater stake for the town in board decisions.
Her second recommendation was for O-NET to provide financial reports on a quarterly basis.
In additional amendments, the loan period would be extended from 10 to 15 years and in the event of deficiency, the Town of Olds would raise municipal taxes sufficient to pay the debt.
Harper said her amendments were not discussed with O-NET ahead of council’s meeting and came as a surprise to them.
However, O-NET’s representatives at the meeting appeared receptive to them.
On the proposed appointment of the town’s corporate services director to the board, O-NET’s director of financial management, Stirling McLeod, said it was an excellent idea.
"He can bring a lot to the discussion and we need all the input that we can get," McLeod said. "And certainly with his experience in managing financial affairs, he’ll be able to share with us and make sure we’re making moves and going in the right direction."
McLeod continued to say that quarterly financial reporting would not be a problem.
"We may not have done it on a quarterly basis per se, but we’ve been available for reporting basically at the beck and call of council, the OI (Olds Institute) board," he said. "We’re trying to be very transparent with the public (with) what’s going on. The only thing that we may not share is information related to the commercial enterprise itself, which would affect our competitive position viability."
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