Auditor's Report Shows City's Debt Now $110 Million

Tuesday, June 28, 2005 03:55 AM

The Audited financial report for the City, has been presented to CIty Council.

Important notes:

The single largest capital expenditure for the 2004 fiscal year involved the Terasen Gas "Lease in-lease out" deal. The loan to Terasen cost about $62 million dollars.

With $78.4 million dollars in total capital spending last year, the Terasen Gas deal ate up nearly all of that amount and nearly doubled the City's debt. The City's debt had been 57 million, the Terasen Gas deal boosted that debt to $110 million.

Other major capital spending projects were as follows:

Purchase of the land at 4th and Victoria $2,774,000.00
Hart-Nechako Water Supply improvements $1.6 million
Computer Costs $476,000.00
Pine Beetle Control $317,000.00

The Auditor is confident Terasen's repayment of that loan will exceed the cost of the City borrowing the money, and will leave the City in a better position.
Previous Story - Next Story

Email |

Print |

Facebook |

Twitter |

Digg |

Del.icio.us

Posted on Tuesday, June 28, 2005 03:55 AM in News by 250 News

Return to Home

Comments

Posted by: Chadermando on June 28 2005 4:59 PM

$10 Million a year in interst that could go to roads. The Terasen deal is a bad deal that will come back and bit us hard IMO. We did not need that liability for the sweet promises they made.