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Sudbury city council once again mulls over debt financing to pay for big projects

Sudbury city council has directed staff to create a debt management policy to help the city make decisions about borrowing money for large projects.

'This is the council. This one right here that will decide what that future looks like'

Sudbury city council held an information session on Tuesday about debt financing. (Yvon Theriault/Radio-Canada)

Sudbury, Ont., may soon have a strategy that city council can turn to when thinking about borrowing money.

A debt management policy is expected to be drawn up by staff over the next month. 

It will help the city make decisions when it comes to borrowing money for projects, such as a new arena/events centre and a Place des Arts, or repairs to Lorne Street and the twinning of Municipal Road 35

"This is the council. This one right here that will decide what that future looks like," Coun. Lynne Reynolds said.

"Whether we keep limping along or whether we set this city on a well considered, well planned path of growth, prosperity and quality of life for every one of our citizens."

Capacity for $143M of debt over 20 years

Reynolds brought forward a motion to create the policy during an information session on debt financing at Tuesday's finance and administration committee meeting. 
Sudbury city councillor Lynne Reynolds put forward a motion on Tuesday to direct staff to develop a debt financing strategy. (Yvon Theriault/Radio-Canada)

It is estimated the city could secure an additional $143 million in debt over a 20 year period

Staff have been telling council for some time that Sudbury is in a favourable position to use debt financing due to low interest rates. 

"We are considering different steps going forward," Coun. Mike Jakubo said. He's the chair of the city's finance committee.

"Certainly, if we meet our debt policy ... It can be a very good vehicle to achieve some of those goals."