NNSL (DEC 18/96) - The City of Yellowknife's debt is projected to be $24.2 million at the end of next year.

In 1997 the city will spend $28.3 million, approximately $91,500 more than it makes.

Surpluses carried over from previous years will be used to cover the shortfall, explained finance director Joe Kronstal.

The city will pay $3.5 million in interest and principal on the debt, reducing outstanding principal by about $1.3 million.

Kronstal said the city is currently looking at refinancing options to lower the cost of debt servicing.

Approximately 60 per cent of the total owed is the result of borrowing for infrastructure projects.

All but $3.4 million is owed to the territorial government through debenture borrowing.

The remainder is the result of the city's lease obligations for Centre Square mall.

Those obligations could be changed very soon, as the city pursues plans to cut its losses by purchasing the library space.