By Leah Murray

City to spend nearly $60 million on water and sewer

Feb 22, 2017 | 4:00 AM

MEDICINE HAT, AB – On Tuesday night City Council approved $58.7 million dollars in borrowing for infrastructure projects over the next two years.

The majority of the projects are water and sewer main replacements, but there are also some upgrades being made to Medicine Hat’s water treatment plant.

The projects will increase the city’s debt level from 45 per cent to 63 per cent.

Councillor Bill Cocks said it’s concerning to see that number increase.

“63 per cent is as high as we’ve been and a lot higher than we’ve been in the past.” he said. “It’s a lot higher than I can ever remember us being.”

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The levels are set out by the Province of Alberta and dictate how much money a city or municipality can safely borrow.

Cocks adds although the city is trying to reduce spending with no longer having a $23 million dollar dividend from the gas utility, this is one area they can’t cut back.

“We recognize these are services that citizens of Medicine Hat depend on us to provide.” he said. “So we’re putting the spade in the ground and going to work.”

Cocks said the money used to pay back the money borrowed for these projects doesn’t come from taxes, instead the debt is paid for by fees and profits generated by the city owned utilities.