A Little More on Financing and Borrowing

I received an email asking if I should use other similar sized cities as comparators when addressing the issue of strategic borrowing to help finance often-deferred and much- needed capital projects in Sarnia.

Here is the text of my reply:

I used London and Strathroy as my main comparators to illustrate the idea of strategic borrowing, as they are along the 402, and their growth is what most Sarnians would see driving on the 402.

Using other similarly sized cities is a good point. As of 2026, St. Thomas (population approx. 40-45,000) had long term debt of about $40 million (according to their budget), which works out roughly to $900.00 to $1,000.00 per capita. By all accounts, this is considered reasonable debt for a city St. Thomas' size and is well below any level of concern. 

Here is a chart from an article from the Fraser Report, using BMA Municipal Reports data showing municipal per capita debt for a number of Ontario cities as of 2023:

The data shows a wide range of debt loads across Ontario municipalities, with Kingston topping the list at more than $3,000 per resident. When you look at cities clustered around the provincial average of roughly $913 per capita, a clear pattern emerges: municipalities experiencing real growth tend to use debt strategically as part of their long‑term planning.

Of course, that requires disciplined decision‑making. Any funds the city borrows must be directed toward essential, long‑lasting priorities, addressing our infrastructure backlog, modernizing aging assets, and extending infrastructure into areas that could attract new industrial and commercial investment.

Strategic borrowing also spreads the cost of major projects over their full lifespan, ensuring that future taxpayers who benefit from the improvements help pay for them. That’s essentially the rationale used in London.

Modernizing infrastructure and preparing potential investment sites so they’re shovel‑ready makes a city far more appealing to new employers. To me, the key is stimulating growth with a view to expanding our stagnant tax base over time.

Chris Oram