Update on Owen Sound’s $28.6 million external debt

The City Clerk directed me to the 2025 Year End Report, including Appendix E: Outstanding Debt Balances:

https://pub-owensound.escribemeetings.com/filestream.ashx?DocumentId=52195

As of December 31, 2025:

  • Total debt listed: $29.43 million
  • Less internally sourced debt: $812,617
  • Total external debt: $28.62 million
  • Total annual debt payments: $3.58 million

A major share appears connected to water and wastewater infrastructure. The clearly identified water/wastewater balances total about $17.19 million, including the wastewater treatment plant intakes, sewage pumping station, the water portion of the 10th Street Bridge, City Hall water and wastewater allocations, and other wastewater capital work.

That raises an important question about how those debt payments are funded.

The City’s website says:

“Water and wastewater services are fully funded by user fees - not property taxes. Only those who use the system pay for it.”

If that also applies to the associated debt payments, then much of the $17.19 million would be rate-supported debt rather than property-tax-supported debt.

Appendix E combines these projects into the City’s overall debt schedule, while the funding source for each debt payment remains unclear.

That distinction matters. The City can have $28.62 million in external debt while only part of that debt is ultimately being serviced through property taxes.

There is also a transparency issue.

The City’s Debt Management Policy, AF003, says the Treasurer’s annual report is supposed to include the original loan amount, purpose, a breakdown of principal and interest payments, interest rate, funding source, maturity, and debt balance for each debt instrument.

Appendix E is missing the interest rates, the breakdown of principal and interest payments, and the funding source for each debt.

I have asked the City to clarify:

  1. Where the required interest rates and principal/interest breakdowns are reported.
  2. Which debt payments are funded through property taxes, water/wastewater user fees, or other revenue sources.

Once that information is provided, we should be able to separate tax-supported debt from rate-supported debt and get a much clearer picture of the actual debt burden on property taxpayers.