The City of Swift Current looks like they will be turning to a financial institution to help them pay for a multitude of projects this year, but they're still forecasting to pay down their total debt by a smidge.

At last nights city council, a report was shared stating the City is intending to borrow just shy of $5 million to complete all of their 2019 capital projects.

That debt would be added to their general government and utility operations bottom line, but by the end of this year they've forecasted to still pay down that number by about $15,200 to sit in the red ink by $60.75 million.

"We're staying flat, so we're basically paying down $4.9 (million) and we're borrowing $4.9 (million), to continue with investments, capital investments for the City," Kathy Hopfner, the general manager of corporate services for the City, said.

The City's 2019 budget included funds to make principal and interest payments for borrowing $4.993 million to help move along about 17 projects slated for this year, eight of which being water/wastewater projects and the remaining nine falling under the general government.

"So the water/wastewater utility debt is funded through water rates and they were increased two per cent on January 1," Hopfner said. "With the general operating budget, the overall tax increase, as you all know, is 2.9 per cent and 1.6 per cent of the 2.9 per cent of the tax increase will be used to pay the principal and interest debt on the new borrowings."

Roughly $1.3 million of the borrowing will be allocated to the water/wastewater projects that include continuation of the biosolids management program, improvements to the South Hill pressure zone, South Hill reservoir upgrade, upgrade truck fill system, improvements to the downtown intersections, filter headworks piping upgrade to improve flow to filters, install Actiflo clarifiers air scour system, and rehabilitation program for hydrants, water valves, and sanitary manholes.

The bulk of the borrowing ($3.69 million) will be spent on general government projects that include continuation of the CPR weir rehabilitation, parkway development near Regeir Honda, flood mitigation, asset management initiative, roof replacement at service centre, storm sewer main replacement along 1st Ave NE from Chaplin St. to Cheadle St., replacement of Olympia with new electric ice resurfacer, rehabilitation of intersection of Chaplin St. & 1st Ave NW, rehabilitation of paved streets, sidewalk, and curbing.

"In a perfect world it would be nice if we didn't have to have any debt or borrow any money," Swift Current councillor Ron Toles said. "In my own life sometimes I have to take out a mortgage or a second mortgage to get things done that need to be done. Looking at this list of things there is no argument with the water/wastewater utility, that just has to be done. Looking at the other list of things the CPR weir has to be done because it's a heritage project. The parkway development is part of our master plan that we're going to continue to do a little bit each year. Flood mitigation, we certainly haven't seen it this year, but we have in the past... there is very little on that list that are non-essential items. I said it would be nice not to borrow, but sometimes you have to take a little debt to get what you need. And again I'm encouraged by the fact that we continuing to pay down. We're still growing and spending, but we're getting better."

The City is expecting to pay a strong majority of what they're hoping to borrow off over a 20-year term, with only a couple equipment purchases being paid off in a 10-year term.

The City is also sending out financing proposals for the amount needed ($4.993 million) to various financial institutions that have responded in the past.