City only at half of its debt capacity: Mayor

Mayor Daryl Bennett, addressing members of the downtown business community Wednesday morning, said the city is in a good financial position, managing its debt and maintaining a strong credit rating.

Debt, on a global, provincial and local level, played a key role in Bennett’s 20-minute speech.

The mayor said the province’s debt has a big influence on the city.

Interest on Ontario’s debt is projected to cost tax payers $10.6 billion in 2013-2014, he said, and dollars spent on the debt are dollars that could be municipalities.

The city’s 2013 budget includes $63 million for 240 capital projects, including improvements at the Peterborough Airport, waste water management and sewer projects, the CPR bridge, arena renovations, road improvements, a new fire station and a new police radio system.

According to standards set out by the province the city is using half of its debt capacity and could carry another $200 million over a 10-year-term, he said.

Citing the situation in the U.S., Greece, the bailouts in Europe and the upheaval associated with the Arab Spring, Bennett

spent by pointed out that those financial problems trickle down.

Ontario’s debt is increasing, he said, and servicing the debt is the province’s third-highest expenditure.

“Of course, municipal governments are not exempt,” he said.

The town of Stockton, Calif., with a population of 300,000 recently declared bankruptcy, he said.

But according Peterborough is well.

The city has a positive credit rating, assigned by Standard and Poor because of the strong budgetary performances with strong yearly balances, he said.

Residential property to Bennett, doing pretty

tax increases have been kept below 3%, he said, and hard spending decisions have been made for long-term investments.

Downtown Business Improvement Area members had few questions for Bennett about his presentation.

A question about surveillance cameras downtown did generate some discussion, when Bennett expressed doubts that the city would be in a position to pay for them.

Bennett acknowledged that cameras are a strong investigative tool, but suggested they weren’t the crime deterrent they’re often made out to be.

Years ago, he said, communities wanted cameras on school buses to stop school bus altercation.

It worked, he said. Altercations moved off the school bus and onto the street where they couldn’t be recorded.

Cameras likely wouldn’t be effective unless they are placed throughout the downtown, or even the whole city, he said.

City police had previously applied for grant money for the cameras, Deputy Chief Steve Streeter told DBIA members, but that the window has closed.

Those grants have increasingly gone to programs targeting gun and gang violence, he said.

Speaking outside the meeting Streeter said police have used private cameras to solve crimes.

They are a strong investigative tool, he said, but police afford them.

Some cities, such as Cobourg, have paired with community groups to install cameras in key locations.

Streeter said the service would be open to a similar partnership.

Roy Brady, a staunch anticamera advocate, said he was glad to hear Bennett’s stance on cameras, and that taxpayers wouldn’t be shovelling out dollars to pay for them.

Brady said he liked most of what Bennett had to say, but was disappointed when the mayor failed to mention social services or the area’s jobless rate.

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