Anybody want to hazard a guess why the City of Portage la Prairie wants to change the rules so they can borrow more money ?

As published in the Portage Daily Graphic June 10th 2008

The city of Portage la Prairie has passed its first hurdle in an attempt to have the Association of Manitoba Municipalities (AMM) lobby the Manitoba government to change the way the province assesses municipal debt.

Members at the AMM’s 2008 Central District Annual Meeting, held in Portage today, voted in favour of the city’s resolution to bring the matter to a vote at the AMM annual convention in November.

The city drafted the resolution because it’s concerned that the Manitoba Municipal Board (MMB) limits the amount of money municipal governments are allowed to borrow to seven per cent of the total portioned assessment of their tax base. The problem the city sees with the system is the seven per cent includes borrowing the city has undertaken that will not be paid by property tax revenues, restricting the city’s borrowing capabilities.

“It feels good to get it through this first step,” said Coun. Dave Quinn, head of the city’s finance, legislative and property committee. “We’re looking at trying to change something for all municipalities, it feels good to do something for Portage, but when you can spread that a little bit wider, I think that’s even better.”

The resolution will face another vote at the AMM annual convention in November, and if it passes, the organization will begin lobbying the provincial government to change the way the MMB looks at municipalities’ debt loads.