Fort Saskatchewan council unanimously approved a new debt management policy for the city on Tuesday night (Oct.9).
The newly approved policy establishes guiding principles and controls for the city’s use of debt, setting a debt limit of 75 per cent of the maximum allowed by the provincial government.
Council passed the policy with little debate. A draft version of the policy had already been a topic of discussion at a committee of the whole meeting on September 18.
"The debt management policy firms up our intention going forward as to how the city will manage debt for the next three and a half years,” said councillor Brian Kelly.
The city is currently running at around 33 per cent of its current debt limit.
"I note also though that had the city gone ahead with constructing a new pool as was talked about at the last election and the plebiscite, that that pool could have pushed our debt to 89 per cent of the limit,” Kelly added.
“So setting a 75 per cent limit I consider a milestone."