Governing Council chambers. Kenneth Truong/THE VARSITY

The University of Toronto’s debt sits at a cool $1 billion dollars as of August 31, 2016, according to the status report on debt presented to the Business Board on September 22.

The $1 billion debt has remained a constant figure in the university’s financial record since June 2014, when the outstanding debt initially surpassed $1 billion. The total amount of debt has fluctuated only marginally since then, sitting at $1.012 billion in July 2015. The actual outstanding debt for the University now totals $1.023 billion, an $11 million increase from the 2015 figures.

The university allocates a debt limit of 5 per cent of the University’s annual expenditures. The status report shows that the actual outstanding debt currently sits at 3.5 per cent of expenditures, well within the Business Board’s $1.5 billion limitation for the 2016–2017 year.

Of that 3.5 per cent, 1.2 per cent comes from internal loans. This includes the university’s pension debt — $121 million — which totals 0.4 per cent of the internal loans. The remaining 2.3 per cent stems from external debts, due to institutions outside of the university.

Of the university’s external debt, $715.8 million is tied up in external debentures, which are unsecured loans without the backing of assets. This is a slight decrease from the $717.6 million outlined in the February 2016 status report on debt.

The report notes that net allocations, borrowing that is approved by the Business Board, stood at $1.2 billion up to August 31, with $220.1 million available for future allocation. This amount includes an allocation change of $1.9 million.

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