City's debt hits $119.8 million in Kamloops
May 03, 2017 - 1:18 PM
KAMLOOPS – The City of Kamloops’ debt rose to $119.8 million in 2016, but an auditor says there’s no reason to panic.
The debt increase came mainly from capital works projects like the purchase of the Owl Road dump, and Overlanders Bridge repairs.
The $119.8 million is the peak and will drop within two years if “all goes to plan,” according to Mario Piroddi, auditor with BDO Canada.
In 2016, the City’s debt increased to $119.8 million from $94.2 million in 2015, Piroddi said at yesterday’s council meeting. The debt load per person is higher than the average in other municipalities. Piroddi said in Kamloops the rate sits at $1,300 compared to the provincial average of $1,000 per person.
After the Tournament Capital Centre and water treatment plant debts are repaid this year, he estimates the debt load will drop.
The City’s total debt excludes the airport, which is funded by a user-pay system.
Piroddi added that developer contributed assets like water lines is proof of increased construction activity and growth that points to revenue generation.
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