City paid down $8.5M in debt in ’14

The city is paying down its debt and saw a surplus last year, according to the 2014 annual report

The city is paying down its debt and saw a surplus last year, according to the 2014 annual report brought before council last week.

The city repaid $8.5 million in 2014, with long-term debt at the end of the year at $69.8 million – down from $78.3 million in 2013.

The debt that remains on Plan A projects, including the Abbotsford Centre, The Reach gallery and improvements to the Abbotsford Recreation Centre, accounts for the bulk of remaining debt – $68 million – which cannot be paid out early as the city would be financially penalized according to the loan agreement. The Abbotsford Centre is expected to be paid off by 2032.

The remaining debt for water and sewer – about $1.7 million – is expected to be paid off by 2016.

The city’s total capital reserves increased by $17 million to just over $96 million in 2014, up from $79 million in 2013.

Mayor Henry Braun said while there is more work to be done, “we are definitely in a better financial shape today than we were just a few years ago.”

To view the annual report: http://www.abbotsford.ca/city_hall/finance/annual_reports.htm