WATERLOO REGION - The Region of Waterloo has added another $94.2 million in debt to help pay for items including wastewater and transit.

Coun. Sean Strickland, who chairs the regional committee which oversees finances, said the region is managing its debt.

"I wouldn't be surprised that our debentures continue to grow over time as our community grows, the key is to make sure we manage the whole portfolio of debt and that includes debt that's retiring and new debt that we take on," he said.

In late 2015 staff estimated the region would end the year with about $615 million in debt and that would grow to about $635 million this year.

About $33 million of the most recent debenture was issued for 10 years while the remainder was issued for 20 years.

The debt was issued for several projects:

• $61.2 million for the Kitchener wastewater treatment plant

• $15.4 million for regional facilities

• $7.7 million for waste management projects

• $7.7 million for transit projects, including an electronic fare system

• $2.2 million for the Waterloo Regional Police Service

Officials say the debt will be partly offset by about $45 million in existing debt that will be paid off in 2016.

"We had a significant amount of debt that we retired as well so what we need to do is borrow within our limits . and we're well below our borrowing capacity," he said.

It's the province that decides how much debt a municipality can take on. A calculation is made based on several factors including revenues and existing debt.

For 2016, the region could commit up to $100 million in new debt payments. Assuming a 20-year term and five per cent interest the region could issue up to $1.2 billion in new debt.

Debt costs have been identified as a driver of tax hikes on recent regional budgets.

According to a regional report in August the region is spending about $67 million on debt costs this year.

Strickland said development charges and reserves will help the region manage its debt and infrastructure costs.

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The region achieved the lowest interest rates it's ever received for a debenture with 2.05 per cent interest on the 10-year debenture and 2.79 per cent on the 20-year portion.

In a regional report, staff credit the region's triple-A credit rating from Moody's Investors Service for the low interest rate.

The region also issues about $10.2 million in debt for the cities of Cambridge and Kitchener and the Township of Wellesley.