Whitehorse Daily Star

Image title

Photo by Whitehorse Star

City councillor Ted Laking

City’s escalating debt load concerns council member

City councillor Ted Laking is voicing serious concerns over the amount of debt the City of Whitehorse has taken on.

By Whitehorse Star on June 29, 2022

City councillor Ted Laking is voicing serious concerns over the amount of debt the City of Whitehorse has taken on.

According to the 2021 Financial Statements presented to council this week, the city is mired in $15.7 million worth of debt.

This amount increased by $10 million compared to the previous year because of the new City Operations Building, Laking pointed out.

The long-term debt per capita has more than doubled in just one year, soaring from $210 to $473.

That is $473 of debt for every single resident of Whitehorse, Laking said.

According to the financial statements, the City of Whitehorse paid out $524,329 in interest on this debt last year.

“Every single dollar we are spending on interest is a dollar that is not going towards road maintenance and snow removal,” Laking pointed out Tuesday.

“This is exactly why I have been so vocal in raising concerns about the many projects that have been going overbudget.

“I have heard from many residents who would prefer us to focus on the essentials like improving services rather than going into debt and burdening the next generation of taxpayers.”

During Monday evening’s council meeting, Laking said he found the financial statements “very informative and helpful – and I am glad that we are open and transparent in showing this type of information to the public.

“I did want to flag a concern that I also referenced last week and that is to do with respect to debt,” he told council.

“The financial statements indicate that the City of Whitehorse now has $15.7 million of debt. And that $10 million of that was added last year to help pay for the new City Operations building.”

The long-term debt per capita of $473 and the $524,329 the city has spent on interest to service the debt last year “are important facts for our residents as we approve these financial statements ’cause these have real world impacts on them and the future of the city,” Laking said.

“Every single dollar spent on that interest is a dollar that is not going towards snow removal or filling potholes.

“So as we carry debt or consider taking on new debt to build things like new city halls, this is a concern for myself, as I have heard loud and clear that many residents would prefer us to enhance services such as snow removal or road maintenance or to prioritize infrastructure that benefits the entire community,” Laking told his council colleagues.

He has voted against several projects that have gone over-budget in recent months.

His was the lone vote against the city hall demolition/expansion project last January.

Later, after the lowest construction bid was substantially higher than the city’s expectations, the project was put on ice indefinitely so officials can study other options.

“I think the city is in a very good financial position,” Mayor Laura Cabott told the Star late this morning. “Our levels of debt are nothing out of the ordinary.”

Cabott added she had not seen Laking’s statement outlining his fiscal concerns.

Comments (31)

Up 0 Down 0

Hobo on Jul 5, 2022 at 10:24 pm

@Juniper Jackson: " Ms. Cabot sounded and present herself as being a smart person." Let's see: she is a lawyer and now she became a politician; OK,..... I see it now

Up 0 Down 0

Nathan Living on Jul 5, 2022 at 6:25 pm

I think the Mayor should resign and the veteran councillors should determine if they actually bring anything substantive to council.

And we have to ask why Ted is the only councillor rocking the boat.

Up 11 Down 1

AdmiralA$$ on Jul 5, 2022 at 1:59 pm

For every dollar of debt, was a dollar not taxed or created properly. That is a dollar created of nothing, printed into existence and a penny added to every item at the grocery store.

Although this is only half truth and a small portion of a larger picture it is essentially true. Our cost of living will not go down until our government stops creating something from nothing. We can not print supply chains. We can not print production. We can not print prosperity. We can however, print ourselves into ruin. This is what happens when politicians have spending lists not budgets.

Up 16 Down 1

Jim on Jul 5, 2022 at 11:03 am

@Politico, here’s specifics for you. Maybe the wise folks at the city shouldn’t be spending 4+ million on Robert Service Way park. To do what? Rotary park and Shipyards park are over capacity? They’ve taken a tent camping site that many used during the summer month and the city received rent from a contractor to now make it into a year round facility. Now tenters have no place to go and the city is pondering letting tenters camp at facilities like Tahkini arena.
Now this facility will cost taxpayers annually to run. How about the 4+ million they spent on renovating the new fire hall building (same foot print as before) after claiming it was falling down around their ears. Or the 60+ million they spent on the grand hall they built on the hill. Maybe visit it sometime to see the luxury they are wallowing around in. Or the +13 million Bylaw building at the top of the 2 mile hill. Maybe add up all this square footage and realize how much space the city has increased by. The only building they’ve reduced is the old Cassiar building. Plus they are renting for building staff at the Calcite Center.
This City is drunk on their own frills and luxuries. We still have potholes, worn out bridge to Riverdale, snow clearing problems and other basic municipal duties lacking. I for one take Ted’s warning seriously. Will he solve this problem alone? Of course not. There are 6 other members on council and some of those are still with the mindset that money is free. The city hasn’t been fiscally responsible for quite some time.

Up 9 Down 0

Groucho d'North on Jul 5, 2022 at 9:46 am

Either you manage your money for what you want to do, or your lack of managment defines what you can and cannot do.

Up 4 Down 7

Moose on Jul 4, 2022 at 12:43 pm

@vlad that's good to hear about Harper's financial achievements and how he left the books. Now just as I asked previously, would you mind telling me what the overall debt and deficit were when he came to power and what they were when he left? Surely these numbers must show what you are saying about the conservatives having been great for the country financially.

Up 7 Down 13

Johnson on Jul 4, 2022 at 11:16 am

'they want us to improve services and stop spending money' - have you ever cut your budget and been better off? Why don't we cut your paycheck Ted and see if you can figure out how to make your own life more efficient.

Up 13 Down 3

SH on Jul 4, 2022 at 10:34 am

Laking for mayor!

Cabott for anything but mayor!

Up 16 Down 3

Goliath Strikes Back on Jul 2, 2022 at 10:22 pm

At David on Jul 2, 2022 at 5:41 am:

Yes Dave - Everyone should rent and they should do it forever. You will own nothing and be happy. The city is leading by example on the way to the Great Reset…

Up 25 Down 9

vlad on Jul 2, 2022 at 10:02 am

@Moose...perhaps you were not a fan of Harper however his fiscal achievements are well known, he led us through a recession, left the present government with tidy books and now it's all gone to hell in a hand basket. Remember this present government was going in the red long before there was a pandemic...and to quote your leader "budgets balance themselves"...

Up 11 Down 27

David on Jul 2, 2022 at 5:41 am

"[...] the city is mired in $15.7 million worth of debt."

$10 million more than last year, to help pay for the new City Operations building.

Would Ted Laking prefer that we rent the building instead, so that we can pay rent forever??? When the city rents from the private sector, it always pays more than if it bought the building itself. You don't think the private sector rents those buildings out of the goodness of their hearts, do you???

Up 10 Down 30

Moose on Jul 1, 2022 at 2:27 pm

@Bozojoe

Great logic about conservatives conserving and always paying down the debt.

Just to confirm your theory, let's look at the last Conservative government under Stepehn Harper. Would you mind telling me what the overall debt was when he came to office and how much he reduced it by when he left office 15 years later? I look forward to what you find out! Perhaps you could also report back on the surplus/deficit he inherited vs what he left as well.

Up 40 Down 11

Bandit on Jul 1, 2022 at 8:01 am

TED LAKING FOR MAYOR!!!

Up 42 Down 5

marylaker on Jun 30, 2022 at 6:19 pm

Unless we are experiencing extraordinary times, running up any debt, let alone almost tripling it in one year, is "something out of the ordinary".

I can't believe our mayor is so relaxed about doubling the debt of the city of Whitehorse! That is money owed by citizens, in one form or another. I take it far more seriously than Laura Cabott does, and that's a problem for me.

Keep up the heat, Ted Laking. I am sure you are irritating a few people on council, but you are doing the rest of us a good service.

Up 4 Down 7

Mitch Holder on Jun 30, 2022 at 4:56 pm

@ LAWL - Laughing at weasels losing.

Up 20 Down 35

Lawl on Jun 30, 2022 at 4:02 pm

Hey Ted, why don't you roll back the sweet wage increase y'all just gave yourself?

Or cut back on all that travel you've been billing back to COW. Ever hear of Skype?

Up 10 Down 9

MITCH on Jun 30, 2022 at 3:05 pm

Ride a bike trail Dave, think before you think.

Up 26 Down 10

MITCH on Jun 30, 2022 at 2:15 pm

And Dave, question, how does one "get a life" with 10% inflation in a barren country that is a post nation state. Are you going to arbitrate what kind of life I should get? Would you like to drive me to the camps for people we don't have room for in this country, or should I take the train? Happy Garbage day Dave. Have a hot dog and enjoy the territory wide fire ban, you earned it, oh champion of plebs. Mother hen, more like.

Up 10 Down 35

dave on Jun 30, 2022 at 9:49 am

Get a life Mitch.
Think before you type.

Up 51 Down 9

DA on Jun 30, 2022 at 9:03 am

“I think the city is in a very good financial position,” Mayor Laura Cabott told the Star late this morning. “Our levels of debt are nothing out of the ordinary.”

Mayor Cabott, you and I have very different opinions on debt. In my opinion, you can't be in a good financial position if you are in debt, especially if that debt is increasing. The City is slowly becoming a slave to debt, and you don't seem to care. I see I was right in not voting for you in the last municipal election.

Up 58 Down 6

Juniper Jackson on Jun 29, 2022 at 8:57 pm

“I think the city is in a very good financial position,” Mayor Laura Cabott told the Star late this morning. “Our levels of debt are nothing out of the ordinary.” Say what??? And Ms. Cabot sounded and present herself as being a smart person. Is almost 16 million dollars in debt for a small community, really looks like we are in a good financial position?

.

Up 16 Down 55

Politico on Jun 29, 2022 at 7:58 pm

As usual Ted is long on rhetoric but short on specifics, as are most of the posters here. I'm interested in what they propose to cut and redirect but again no specifics. The catch phrase "fiscally responsible" keeps popping up but again no specifics. It's easy to criticize but a lot harder to actually do the job!

Up 56 Down 4

Fix our roads on Jun 29, 2022 at 6:33 pm

Fix the roads!!! Our streets are full of potholes created by inexperienced grader operators trying to scrape off all the snow in March instead of just letting it melt. All we get from the CoW is empty promises to fix their mistakes. We need a whole lot less greenwashed inclusiveness, and a whole lot more "roll up yer sleeves and get 'er done". We're tired of seeing our taxes increase while municipal services decrease, and all we get is increasing amounts of empty Libspeak platitudes.

Up 47 Down 5

Charlie's Aunt on Jun 29, 2022 at 5:56 pm

Laking is concerned and Cabott thinks it is nothing out of the ordinary! Makes you wonder on the difference on how their personal finances operate. Surprised CoW hasn't invoiced everyone for $473 or is that coming next? I don't think shares in CoW would be tempt me if they were floated on Vancouver market with this type of fiscal responsibility. Something many didn't grasp when JT etc were handing out free money; nothing is free and every extra bank note printed meant the one you already had is only worth half as much. That is why we have inflation with costs increasing for all of us, including City who also think it grows on trees.

Up 49 Down 5

Nathan Living on Jun 29, 2022 at 5:40 pm

I think its the worst city council we have had in 40 years. And both the current council and city administration coincide with a profound deterioration of what we used to value most about Whitehorse.

Let's have council sharpen their pencils and actually care about spending and civic debt before they throw away our tax money.

Up 85 Down 18

bonanzajoe on Jun 29, 2022 at 4:50 pm

Well, like lord JT the part time drama teacher said, "the budget will balance itself". If the next generations don't want to be saddled with trillions of dollars in debt, they better start voting Conservative. That's what "conservative" means, keeping the future generations out of debt.

Up 88 Down 12

John on Jun 29, 2022 at 3:50 pm

@ Mayor Laura Cabott...

...told the Star late this morning. “Our levels of debt are nothing out of the ordinary.”

Ordinary ! If I increased my debt load by 225% in one year and my interest payments ballooned out of control I sure as hell would not call that ordinary. I don't know who your personal bookkeeper is (unless it is Trudeau) but I would be more than concerned. I would be looking for a new bookkeeper and I wouldn't call it ordinary! Oh, but wait, this is the Liberal philosophy of "the budget will balance itself". This is what happens when we put a Liberal in as Mayor - two in a row to be precise. That is why we are in the position we are in. Extravagant spending on top of extravagant spending...

Ted is right on the mark. Start being more fiscally responsible. Stop all the silly grants and pis---g money out the door on projects we can ill afford. Get down to providing the basics of what we need to function as a city.

Up 77 Down 18

MITCH on Jun 29, 2022 at 3:50 pm

Looks like that inclusivity council might have run us into the red - stick to municipal operations if you value your careers. In case you haven't noticed - WE ARE NOT IN THE MOOD AND HAVE NOT BEEN FOR SOME TIME.

Up 63 Down 4

North_of_60 on Jun 29, 2022 at 3:18 pm

Didn't the previous CoW administration claim the debt from cost "overruns" on the "Curtis' Castle" would be paid by selling the old Ops bldg property?

Up 72 Down 6

Doug on Jun 29, 2022 at 3:15 pm

With the abundance of vacant land and shortage of residential and commercial property, sell off lands to raise funds. There's plenty of private money here could easily knock the city debt load down and the same time stimulate the local economy.

Up 66 Down 20

Liberals in La La Land on Jun 29, 2022 at 3:07 pm

No schitt! However, there are few votes for fiscally prudent leadership so it’s like all the women who voted for great socks, and good hair are getting exactly what they deserve - Bankruptcy, morally, ethically, and financially - Well done diversifiers!

Add your comments or reply via Twitter @whitehorsestar

In order to encourage thoughtful and responsible discussion, website comments will not be visible until a moderator approves them. Please add comments judiciously and refrain from maligning any individual or institution. Read about our user comment and privacy policies.

Your name and email address are required before your comment is posted. Otherwise, your comment will not be posted.