Mandel fights efforts to ?misrepresent? Edmonton debt level

EDMONTON - Mayor Stephen Mandel and other council members took aim Monday at efforts to ?misrepresent? the size of Edmonton?s debt.

An executive committee report indicated that by the end of last year the total debt was $2.2 billion, but only one-third of it ? $766 million ? is being paid off from property taxes.

That money was borrowed mainly to build recreation centres, LRT expansion and the Whitemud Drive-Quesnell Bridge widening, the report says.

Most of the remaining debt was taken on for sewer and other utility work, which will be paid off through utility fees.

The rest was primarily used to build the south LRT, funded by federal fuel taxes, or is short-term construction borrowing covered mostly by future provincial infrastructure grants.

The total debt is about half the limit set by the Alberta government, the report says.

?I asked for this because I really think there was an effort to misrepresent what our debt is,? Mayor Stephen Mandel said, without indicating who?s behind it.

?I think this council has been incredibly businesslike.?

Any comparisons to bankrupt Detroit, which has debts of at least $18 billion, a troubled economy and huge pension and health-care liabilities, is ?ridiculous,? he said.

Tax-supported debt has grown substantially since council decided to start borrowing again in 2002, a move Mandel said he opposed at the time because he didn?t think it was the best way to go.

But now he doesn?t know how council would have dealt the with city?s rapid growth if it hadn?t taken out loans, on which the current low interest rates are set for the entire length of the term.

?If you didn?t want the NAIT LRT or the Terwillegar Recreation Centre or the Commonwealth recreation centre ? or the Walterdale Bridge (replacement), you could say no to them and you wouldn?t have to pay.?

The report came out the same day mayoral candidate Coun. Kerry Diotte argued in a blog post that with Edmonton?s debt projected to be nearly $3 billion by the end of the year, the city is on a ?wild spending spree.?

However, Mandel said the city has just responded to public needs.

?I would be really interested to see what neighbourhood in Terwillegar would say we don?t want the Terwillegar rec centre,? he said.

?Responsible use of debt is important.?

gkent@edmontonjournal.com

Source: http://feeds.canada.com/~r/canwest/F264/~3/xWjwvOWtXmc/story.html

optimal Samantha Steele Espn goog Sylvia Kristel st louis cardinals Steelers Schedule tory burch