The budget line in the province’s financial plan about the Green Line has Calgary’s mayor seeing red.
Naheed Nenshi says while the province is still committed to funding, it is now over a longer time-frame.
Originally, the province had committed to $555-million over the next four years, but now the city will receive $75-million during that time frame, according to the budget delivered Thursday.
Nenshi says this creates a huge funding problem, putting the start of the project in jeopardy.
“The challenge is, it is such a complicated project, $4.5 billion, with income coming at different times, and if you delay it, even if you delay the spending, you massively change the debt profile, and you massively increase debt in certain years,” Nenshi said.
The mayor says he doesn’t know how the city completes the Green Line on time.
“We just don’t have the ability to borrow that much money at the city level.”
Nenshi says the cash-flows might be so different that the city’s ‘financial wizards’ cannot build a scenario where it can be built at all.