YORKTON - When it comes to the job of a municipal council it ultimately boils down to doing the best job possible to manage the money residents pay in the form of taxes.
In Yorkton you might well argue particular projects being ill-advised, selling the public library building to generate a rather small annual operating benefit, and thinking that it was a good idea, while having no issue spending $7.5 million on a new golf clubhouse and associated infrastructure comes to mind as being decidedly at odds with each other.
But, overall, the finances of the city continue to look rather good, at least according to the 2022 Audited Financial Statements approved by council at its regular meeting Monday.
Set by the province the city’s debt limit is $42 million, a number established years ago which could likely be raised should the city request it.
But, at present the city has gone very deep into the borrowing limit with only three outstanding loans; the fire hall $1,806,274 which will be paid off in 2025, the Queen Street Water Treatment Plant at $871,000 which will be paid off by the end of 2023, and work on Dracup of $2,961,282 due to be paid off in 2027.
This leaves the city with approximately $36,400,000 of debt available, as of Dec. 31, 2022.
Now to be fair the city has other debt with the City Operations Center and the Deer Park Clubhouse / Kinsmen / Gallagher Ice Plant projects funded using internal borrowing, as there was sufficient cash flow to do these projects, though it will be several years before they are ‘paid off’. This is basically using money from general accounts to fund specific projects, then paying it back into the account.
More importantly the city is planning for long-term debt requirements, which will almost assuredly require additional financing starting with the massive York Road Reconstruction project, the largest undertaking in Yorkton’s history at 26,600,000.
And while the city has started collecting a levy it’s unclear whether they will need to borrow to pay its share of a new hospital build when it comes – likely soon since a provincial election nears and that would be a plum for the Saskatchewan Party to hand out ahead of a new vote.
Moving forward of course there will be other projects – a new sewage treatment facility which will cost millions is a definite – and there is huge potential for forced infrastructure repair and replacement simply based on the age of existing asphalt, sidewalks and pipes.
But, overall Councils of the last decade, or so, have managed spending well – even if specific projects can be questioned.
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