Special Council Meeting on LUI loan payments

At a Council Committee of the Whole meeting on September 23, Ken Strauss represented the Cobourg Taxpayers Association (CTA) and criticized what he called Stealth taxes imposed by LUI (Lakeshore Utilities).  LUI is owned by Holdco which in turn is majority owned by the Town and pays both an annual dividend and interest on a loan to the Town set up in 2000. The loan is for $7M at 7.25% ($507K/year) and so far no payments have been made on the principal. Because of these payments by Holdco, Ken said that without them, electricity rates could be lower so in effect, the Town is taxing us via our LUI bills.  But the interest rate is higher than it need be (as set… Read complete articleSpecial Council Meeting on LUI loan payments