Annual report shows city debt eased $3.7M
By COLLIN GALLANT on May 22, 2019.
cgallant@medicinehatnews.com
The municipal debt load was lightened in 2018 as borrowing for non-utility projects dropped off steeply, according to the newly released annual report of the City of Medicine Hat.
Administrators often separate debt into two categories: “tax supported” relating to civic construction projects and “rate supported” for utility spending.
At Dec. 31, the total amount sat at $317.6 million, about $3.7 million lower as debt was retired more quickly than new borrowing was added.
Essentially the city paid off $25.2 million of principal while only adding $21.5 million of new debentures, mainly for utility construction and upgrades.
In terms of debt related to municipal divisions, it sat at $41.8 million at the end of 2018, down from $46.5 million at the end of 2017.
Utility-related debt rose by just $900,000 to sit at $275.7 million as new projects were added and others paid off.
The largest portion of the new borrowing last year related to electric utility work, totalling $15.2 million. The figure also includes $5.8 million for water and sewer projects and landfill improvements, and $500,000 for the gas utility.
Utility debt balance rose steeply after 2015 as the $55-million Unit 16 power plant was financed in two parts spanning two years.
That same year finance officials folded $10 million related to the Canalta Centre construction into the municipal total, though it is paid off through a per ticket fee at the arena and event centre.
Combined debt servicing costs to the city treasury last year was $36.4 million.
The utility division’s debt total also includes a $40-million line-of-credit surety registered with provincial energy regulators to comply with well abandonment protocol.
City Utility Total
2018 $275.7 $41.8 $317.5
2017 $274.8 $46.5 $321.3
2016 $265.2 $36.7 $301.9
2015 $229.7 $38.8 $268.5
2014 $203.4 $24.9 $228.3
2013 $187.9 $23.2 $211.1
2012 $183.8 $22.5 $206.3
2011 $183.7 $24.9 $208.6
2010 $187.7 $27.4 $215.1
2009 $186.7 $29.4 $216.1
* Figures in millions of dollars
Source: City of Medicine Hat Annual Reports
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