The City of Mississauga is moving forward with debt financing for specific City projects; the added funds will help to maintain existing City infrastructure projects and build new facilities like the Transitway and the Meadowvale Community Centre. City Council approved this approach as part of the 2014 Business Plan and Budget.
“Taking on more debt isn’t something we take lightly here in the City of Mississauga,” said Mayor Hazel McCallion. “But we’ve done our homework, and we just can’t raise enough funding quickly enough from our property taxes and limited revenue sources. We need to take on debt so we can continue to deliver transit, roads, libraries, recreation centres and all the other programs and services that our citizens depend on.”
The City’s Chief Financial Officer Gary Kent added that the City has a debt management policy to make sure the City doesn’t take on more than it can handle.
“The City’s debt policy sets a prudent limit that ensures that any debt will continue to be manageable,” said Kent. “The City’s debt is currently $67 per person, which is low compared to other cities of our size.”
Municipal debt financing is arranged by regional governments. This is the second time in recent years the City will use debt to fund infrastructure projects. Last year, the Region of Peel Council issued debt for Mississauga on June 20, 2013. On April 24 this year, the Region gave its staff the authority to negotiate debt for Mississauga again.