Chestermere city council gave second and third reading to a bylaw extending the deadline for repayment by Chestermere Utilities Inc. (CUI) of a promissory note stemming from the creation of the utility company.
This is the second extension of the note, valued at $554,427, that has been approved. With the extension, the note now comes due on Dec. 31, 2023.
In addition to the extension, council has added an interest rate of 2.44 per cent to the loan.
The interest has been added to recoup the lost investment earnings that the city has given up in extending the period of the loan to CUI. It has been left up to the discretion of CUI whether interest will be paid to the city or added to the principle of the loan.