Council Moves Ahead To Float $30 Million Loan RFP

Increased utility bills to pay borrowed funds back

The most important infrastructure project for the City - as laid out in the last municipal election - received a major boost from Council on Tuesday afternoon as they voted unanimously to approve Administration’s financing request.

It was a move that will if it reaches the bylaw stage and approved see the City take on the largest debt in its’ history.

A debt that - if given final approval - will include $30 million floated out in the largest Request For Proposal (RFP) ever issued by the City.

The financing opportunity became available after the Saskatchewan Municipal Board agreed with a municipality request increasing the City’s debt limit from $95,000,000 to $135,000,000.

THE CRESCENT VIEW LIFT STATION - MJ INDEPENDENT FILE PHOTO

On Tuesday afternoon council gave the OK to issue a Request For Proposal (RFP) for $30 million. The RFP will have a repayment schedule over 15 years.

Asked by Councillor Chris Warren about how the loan will be repaid - at a expected rate of $1.2 million per year - Director of Financial Services Jaime Ansell said the money would be recovered by increased utility bills.

“It will be built into utility rate planning…it will be reflective in the utility rates brought back,” Ansell said.

Warren took a guess that the $1.2 million would result in a further five or six percent increase in utility rates but it was something Ansell said she couldn’t confirm.

Councillor Patrick Boyle was told currently Moose Jaw has a debt of $69.7 million at the end of 2025. The additional debt for the lift station would leave the City owing $99.7 million.

On the other side of the coin Moose Jaw has $88.6 million in long term investments. The City also has $17.4 million in medium term investments and $9.7 million in short term investments.

“So we still have over $100 million left (in reserves),” Councillor Boyle said.

Councillor Boyle, who is known for his Conservative Party views, took a shot at the federal Liberal government for not making a larger amount available for infrastructure projects to Saskatchewan municipalities.

“Basically it’s good luck and hopefully you don’t have to flush your toilet in the City of Moose Jaw,” he said about the lack of federal funding.

Councillor Chris Warren (left) and Mayor James Murdock during Tuesday afternoon’s discussion - MJ Independent photo

Councillor Heather Eby emphasized how Council had been borrowing for necessary core infrastructure and not fritting the money away.

“The only fun project in there for some is the Multiplex,” Councillor Eby said while reviewing the projects the City was paying for over long term debt, adding “the rest are necessary infrastructure.”

Councillor Warren asked why the City was borrowing $30 million instead of the required $26 million and was told it was to “leave funds in the reserves to grow in the future” by Ansell.

Ansell said the investments help keep taxes down.

Although not legally required Administration recommend going the RFP route as it would help ensure transparency and accountability in the financing of the Crescent View Headworks Facility.

After an RFP process Administration would return to Council with a recommendation and a borrowing bylaw to approve the financing.

The present Crescent View sewer lift station has reached capacity and events such as heavy rains can cause problems Council was told.

The lift station lifts all of the sewage from the entire sewer system to the sewage treatment plant. All sewer lines are funnelled to this lift station. If the lift goes down there is no way for sewage to reach the sewage treatment plant.

According to Director of Engineering Services Bevan Harlton the project isn’t just about a lift station but it will allow replacing a bunch of disconnected infrastructure.

The project’s biggest driver is capacity and capacity where it’s wanted Harlton said.

“The best thing for us is to get the project done and online,” Harlton said.

If the project starts at the end of May 2026 it’s projected completion date is May 30, 2029.

Total cost of replacing the Crescent View Headworks Facility is approximately $66,410,000.

Initially the City had applied for a funding under the Community Housing Infrastructure but the application was denied.

The non-approval means there is need for the funding through financing and a subsequent increase in the City’s debt limit to facilitate it.

There is an application to the Canada Community Building Fund (CCBF), recognizing its importance to supporting future housing capacity and strengthening the wastewater system.

The City is aiming for $9,752,750.50 under CCBF.

The remaining $26,657,249.75 will be drawn down from investments.