Resident says “prove me wrong” on fire hall cost calculations

As we wade through a lot of the gobbledegook at the council meeting of May 11, 2026, especially at 24 minutes into the meeting regarding the fire hall, we hear that the hall was budgeted with $11.8 million with no overruns.

A debt will be issued for $11.4 million with OILC in the form of a debenture.

A debenture of $11.4 million is a long-term (30-year) IOU where the borrower (Town of Amherstburg) promises to pay regular (yearly) interest payments over the term of the contract (30 years – three decades) after which the original amount ($11.4 million) is repaid on maturity.

At present time, the interest rate posted by OILC (Ontario Land Corp.) is five per cent for the debenture. Now let’s keep things simple. For the fire hall only the debenture is $11.4 million over 30 years. Interest payments on the $11.4 million at five per cent yearly for 30 years is $17.1 million. $11.4 million to be paid back on maturity, $17.1 million paid over 30 years, $28.5 million in total expenditures on the debenture. 

The $11.4 million on debenture, $17.1 million interest and $6.5 million to be paid back to the reserves – the total cost of the fire hall is $35 million.

Prove me wrong.

—Jon Parks

Malden Township

Amherstburg

Resident says “prove me wrong” on fire hall cost calculations