Jeremy Deutsch - Kamloops This Week Published: January 03, 2009
Anyone taking the time to go over the city’s financial statements for the year might get sticker shock when they see $140 million under the debt line. The city’s debt is expected to rise to around $140 million in 2009, up from the current debt of $100 million as part of its five-year financial plan. However, the jump in debt is being attributed to a new waste-water treatment facility budgeted at $36 million. Mayor Peter Milobar explained the project needs to be added to the books for 2009 so the city can apply and receive funding from senior levels of government. City council moved the upgrades, a $36-million sludge/lagoon option for waste treatment, forward in July. The current plant needs upgrades and isn’t meeting provincial standards. The city has applied for a grant that could cover of up to two-thirds of the cost through the Build Canada program. The Tournament Capital Centre and the Kamloops Centre for Water Quality are also part of the debt. Milobar said he isn’t too worried about the size of the debt, suggesting it’s a comfortable amount for the city to carry. “I don’t think we’ve been frivolous with how we’ve approached it,” he said, pointing out two of the three projects were necessities and one was voted on in a referendum. Under law the city is allowed to carry a debt of $200 million. Milobar said the debt is likely at its peak and expects it will go down in coming years as other projects are paid off.
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