The City of North Battleford is looking at increasing its available limit for long-term debt. (file photo/battlefordsNOW Staff) : Angela Brown

By Angela Brown

Future planning

N.B. seeks higher debt limit in case of emergencies

Feb 26, 2019 | 5:10 PM

Staff at the City of North Battleford want to have a little more financial elbow room in case it encounters any high priority emergencies in the future.

Council authorized city administration to apply to the Saskatchewan Municipal Board to increase the city’s debt limit to $55 million. That’s $10 million more than the current $45 million limit.

“Decisions on taking on debt will come at subsequent meetings based on upcoming discussions around asset management,” Mayor Ryan Bater said following council’s meeting. “This is simply getting ahead of the process in order to facilitate that if necessary.”

The mayor stressed the proposed limit does not reflect the city’s actual debt; it is simply a potential threshold for the future.

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Bater mentioned if the city is faced with any type of emergency and needs to borrow funds to deal with it, having the higher limit will provide it with some flexibility so the city can still react.

The city expects to hear back from the municipal board in about four to six weeks.

In his report, North Battleford Finance Director Steve Brown said the higher limit will give the city more leverage when it is planning expenditures in water and sewer, and future capital upgrades.

“I think it’s more important to be proactive on this, than reactive,” Brown said.

He stated the city applied for government funding to upgrade a sewer trunk main, to help with flood mitigation, and allow for the city’s future expansion.

The finance director said in his report that recent use of debt levels have left the city with “very little room to accommodate future investment,” as a result the debt limit needs to increase.

In making the application, Brown said the city will need to provide what its rate of anticipated expenditures will be over the next five to 10 years and how it will pay for it.

The last time the city’s debt limit was increased was in 2010 when it was increased to $45 million.

Even if the municipal board approves the application for the new limit, each future project proposed will need to come to city council for approval before it can go ahead.

Brown said the city’s goal by requesting the increase is to help it have more leverage so it can continue to support strategic investment in North Battleford.

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angela.brown@jpbg.ca

On Twitter: @battlefordsnow