[thistleclub]

Hamilton’s debt mayor’s 'biggest concern'
(Hamilton Mountain News, Kevin Werner, Jan 1 2014)

Hamilton Mayor Bob Bratina is hinting there could be a few new projects in store for the city that will kick off 2014 with a bang.
But what’s haunting the mayor is the city’s looming debt problem that has Hamilton’s future at a crossroads.

“My biggest concern going forward is our debt load will go from here to here,” said Bratina, during an interview at his 2014 New Year’s Day levee at city hall. “That’s something we have to look at.”

His fear is Hamilton could become like China where it used debt financing to build its infrastructure at a rapid pace in its municipalities, leaving the country with a large debt, and empty buildings.

“I’m terrified what happened in China,” he said. “That building boom occurred in municipalities. They have cities with big apartment blocks with nobody in them. We need to be aware of that.”

The city’s financial staff has already warned councillors late last year about the city’s rising debt levels. In 2013 the tax and rate supported debt is about $294 million, but it’s expected to jump to over $800 million in 2014, and nearly $1 billion in 2015 and 2016. In addition, the city’s infrastructure deficit is at a worrying $1.5 billion. The city’s credit agencies have the municipality at AA, which is considered strong.

As Bratina eyes a re-election bid this fall, he says there must be a discussion among candidates about the city’s finances and what direction Hamilton needs to take.

He’s calling the city’s debt problem “the biggest issue” facing the city since “it will set the stage for (how Hamilton grows) over the next four years.

Bratina, who is expect to register to run again for mayor, but needs to take care of a few things first, follows a “mantra” that says “live within your means, do as much as you can, and make the most with what you have.”

Meanwhile, Bratina says there are a couple of “new projects” that will be unveiled shortly that should excite the community. But he refused to talk about them now.

Read it in full here.