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. m Manulife Financial i. Decrease city debt, resident warns From technology to envi- ronmental initiatives. there's little argument Waterloo is considered a leader among Canadian municipalities. But its impressive resume is tainted by its overwhelming debt load, according to one former city councillor. John Shonreed expressed concern Monday night over the city's current debt posi- tion. which sits at $73 mil- lion. Broken down, the burden consists of $12.9 million in non-tax-supported debt, $6.1 million in tax-support- ed debt and $54 million in tax-supported debt stem- ming from the RIM Park capital lease. He pleaded with council not to approve two projects on the night's agenda, a $4.5 million water relining proj- ect and $6.5 million for the development charges reserve fund, which would increase the debt by another 15 per cent, up to $84 mil- lion. Despite the concerns raised. council opted to approve the spending requests. "I believe that until council has a debate and decides on the desirable debt policy. it would be fool- ish to take on new debt," Shortreed said. BY ANDREA Bum Chronicle Stun anulife Ride tor Heart "The forecast debt for existing plus (these) propos- als will put Waterloo in a commanding lead for the highest debt in the province." Heather Card, city treas- urer and chief financial otfi- cer. disputed Shortreed's claims. She said that while a sur- vey of 15 municipalities shows that Waterloo's prin- cipal and interest payment as a percentage of net fund revenues came in the high- est at just under 10 per cent, compared to the 4.92-per- cent average. the debt level is within the limits of the city's capital policy. Since 1987. the city has had a policy in place that net debt charges shall be no more than 50 per cent of the annual operating budget contribution to the capital reserve fund. She said the city's debt level also falls in line with provincial regulations which state that no more than 25 per cent of net operating revenues may be used to pay principal and interest charges for debt. She also listed a number of debenture projects which are expected to offset the city's debt load over the next "While our debt pay- ments as a percentage of net revenue fund revenues are high compared with other municipalities, they are well below ministry limits." she said. at.a.-ghtggar whmiiNmtntaaE Those include a $9.8 mil- lion watermain relining, $3.7 million for parking, $3.5 million for library expansion and $6.5 million from devel- opment charges. few years. But Shortreed said the city should focus on better spending practices to decrease its debt load, and not rely on these projects alone. "Develop debt policy in terms of the impact on the taxpayer." he told coupcil. "Some debts are better than others. Some have no possibility of recovery. some have some chance of recov- ery, and some are almost guaranteed to have offset- ting revenue. The debt poli- cy must look at this. _ "We cannot be limited by being in debt up 19 our, eyes. "You are in a bind. You must consider your priori- ties. These are not the good old days anymore." otrte Lette .The Furniture RO. Box 443, Waterloo, ON, Canada N2J 4A9 Tel. and Fax: (519) 725-0112 ST. JACOBS FARMERS' I MARKET COMPLEX Cottage, Kids dt . Pine, oak and alderwood unfinished wood furniture for do-it-yourself people . Mlnwax fhtitshirtg products . Knowledgeable and helpful staff (ANWOOD Furnishing the home or cottage is a delight with Canwood. - Fully finished, durable B.C. Pine . A wide selection of affordable modular pieces . Ready to assemble and boxed to go! a'li,ii,i,t,,l:,l,f,'ii'": What could be easler. Visit our Canwood Gallery today! V‘mww numw‘ -.-r- ~b-m at the Manuiife Financial Sportsplex and Healthy living Centre New place'. RIM Park "treg-t_-b"""- Comeniendy located at the St. Jacobs Farmers' Market LOTS OF PARKING Store Hours: Tuesday to Saturday 8 Wm, to 5 p.m. buy-ad»