Red Deer city council unanimously approved a motion to reduce the interest rate on the Red Deer and District SPCA’s $1-million loan with the city.
Council originally approved the loan in 2007 to help fund the construction of the SPCA’s new and larger facility, which was built to deal with the increased number of lost and abandoned animals.
On Monday, council reduced the interest rate to 3.6 per cent from 5.058 per cent on the 25-year loan.
The SPCA also chose a variable rate option, to be reviewed every three years over the length of time of the loan.
Mayor Tara Veer said on occasion the city has adjusted terms of city loans with community organizations in order to facilitate payment schedules in awareness of their financial sustainability.
She said the city only has a few such loans and the SPCA loan is the last one to be renegotiated.
“The interest matches what the city is actually paying. I think that’s just fair to those organizations,” Veer said.