Published on October 31, 2023

Borrowing Today, to Invest in Tomorrow

As the City of St. Albert grows, so does the demand for capital projects. City Council and Administration are working together to understand short and long-term needs to support the development of our vibrant community. To do this, the City is developing a long-term capital funding strategy to forecast how major capital projects will be financed over the next several decades. This includes a debt strategy that provides options for financing key capital projects.

What are capital projects and why are they important?

Capital projects include fire halls, recreation centers and other major infrastructure such as roadways and underground utilities that require significant funding upfront and are essential to our community. 

What is a debt strategy?

The City’s debt strategy provides options for how it finances and pays for major capital projects in the short and long-term. Debt financing or borrowing money is like taking out a mortgage and allows the City to pay for large capital projects that require significant investment upfront and pay it back over a longer period. Using this option also helps manage the annual tax impacts on current residents and businesses.  

Why do we need a debt strategy for funding capital projects?

Currently, the cost of capital projects exceeds the annual dollar amounts available for capital funding. Saving the significant amount of money required upfront can take decades. Without funding in place to meet current and future needs, many required capital projects would be postponed. Properly applied, debt financing can be a cost-effective source for funding major capital projects, and a debt strategy provides a planned approach. Using debt financing allows the City to begin capital projects sooner, spreads the costs intergenerationally to residents who will benefit from these projects and provides flexibility when responding to planned and emergent needs. 

The City of St. Albert is planning for the future while sustainably balancing the costs required to fund the needs of our growing and vibrant community. We invite you to take a few minutes to learn more about the City’s debt strategy by watching this short video:

You can also read more about this topic at budget and funding basics. More topics will be added to this page in 2024.

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Last edited: November 1, 2023