Lloydminster‘s long-term debt stood at $90.4 million as of June 30, up from $60.5 million a year earlier, according to the city’s second-quarter financial report presented to council Monday.
Executive Manager Adele Wakaruk told the Governance and Priorities Committee the increase reflects two debenture draws taken earlier this year.
“Our long-term debt is sitting at $90.4 million. Changes from the prior year is that we took two loan disbursements, one for the Cenovus Energy Hub, $30.4 million earlier in January, as well as the final draw for the wastewater treatment plant, which was $3.2 million,” said Wakaruk.
Despite the increase, the city expects debt to decline slightly by year-end, to a forecast $88.4 million by Dec. 31, according to figures the city later confirmed to BorderPulse.
Wakaruk said the city remains well within its legislated debt limits. The legislated debt service limit for 2026 is $31.3 million; the city projects year-end debt service payments of $6.7 million. On principal outstanding, the legislated limit is $188 million, with the city forecasting $102.5 million by year-end, about 54 per cent of that ceiling.
Coun. Justin Vance asked why the city’s debt forecast graphs consistently show debt tapering off over time, when more borrowing is expected for upcoming capital projects.
“I was just curious, like, why that is. Like, do you have to have a conservative approach?” said Vance.
Wakaruk said the forecasts reflect only currently approved commitments, not future projects still under consideration.
“Conservative to me means that we’re always looking at making decisions, understanding where the city has made the most commitments. We don’t want to overcommit ourselves,” said Wakaruk. She confirmed roughly $19.6 million in additional projected debt, tied to already-approved bylaws and budgets, is factored into the current forecast.
City Manager’s office staff said a 10-year capital plan now in development will eventually show the impact of larger, not-yet-approved projects, such as future road work or recreation facilities, on the city’s debt outlook.
Coun. David Lopez suggested the city consider showing residents what specific major projects, like a new swimming pool, would mean for debt and taxes if pursued.
“It’d be good for us to have something that we can go to the public and say, this is where it is. This is what would the impact of it have on your taxes,” said Lopez.
Mayor Gerald Albers agreed, noting the tension between planning ahead and staying ready for senior government funding.
“It certainly helps the taxpayer grasp what a cost of a new pool would be if it was a taxpayer burden. But as the city manager alluded to, this is one of the challenges of being grant-ready, shovel-ready,” said Albers.
The city’s reserves stood at $76 million as of June 30 and are projected to fall to $45.5 million by year-end as budgeted capital projects and transfers proceed.
Read more: Lloydminster reserves healthy even with $88 M in debt
