Reserves are healthy and the city sits well within its legal debt limit – but the first quarter balance sheet reflects the full cost of a generation-defining project.
Lloydminster closed the first quarter of 2026 carrying $88 million in long-term debt – up from $58.6 million at the start of the year – after the city drew the final debenture for the Cenovus Energy Hub in January.
The jump of nearly $30 million in a single quarter is the last major financing move tied to the $93.9 million facility. The city simultaneously paid off the remaining balance on the Russ Robertson Arena debenture, leaving the total number of active debentures unchanged at 13.
To manage the incoming cash, the city invested $20 million in February at rates between 3 and 3.85 per cent.
The numbers were presented to the Governance and Priorities Committee Monday as part of the city’s first quarter financial report.
Despite the debt increase, the city’s financial position remains stable. Cash and investments on hand totalled $89.8 million as of March 31 – enough to fully back all city reserves. Total reserves are projected to reach $46.8 million by year end if all budgeted transfers proceed as planned.
If every approved capital project draws its full financing, the city’s total debt would reach approximately 54 per cent of its legal borrowing limit according to Hill, a ceiling calculated at more than $200 million. The city remains well within that threshold.
Of 134 active capital projects, 12 were completed as of March 31, 94 are in progress, and 28 have not yet started.
The city’s operating budget appeared to run a deficit through Q1, but finance staff said that is a normal first-quarter pattern. Municipal tax revenue is not levied until the second quarter, and a $575,000 provincial police support grant does not arrive until the fourth quarter.
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