A Kamloops child-care society increased its borrowing to complete a new downtown facility but its debt remains manageable, the executive director said Wednesday.

The board of directors for Children's Circle Daycare approved another $25,000 in borrowing to complete a renovated centre in the 600-block of St. Paul Street.

The society will take on a $275,000 debt as part of the development of the new building. It received a $300,000 grant from Victoria and Ottawa under a now defunct plan from the federal Liberal government.

Vi-Anne Zirnhelt, executive director of Children's Circle, said the project capital was originally intended to fund 50 per cent by government, with debt covering the remainder. Due to construction costs and because the renovated house needed to be upgraded to meet commercial building code, those costs jumped by $100,000.

"The final number will be close to $700,000 with a few extra things, licensing and meeting the code," Zirnhelt said. "We were pleased it was as low as it was. In today's market we're fortunate."

The borrowing and overall project is approved by the province, which passed through the $300,000 grant. Rates were boosted $100 a month for full-time spaces, which will replace lost government operating revenue and service the debt.

The society expects to take possession of the building at the end of July, slowly ramping up to fill 28 new child-care spaces. There is a wait list citywide for child care.

The new space will be in addition to the 44 children that can be supported at the existing centre beside Royal Inland Hospital.

Zirnhelt said there are no lack of children needing child care. A challenge exists, however, in recruiting and retaining staff.

A labour shortage in many occupations in B.C. is worse in child care, where low wages are a disincentive.

"Two child-care providers I know are leaving and going into plumbing," she said.