HUMBOLDT – The City of Humboldt has approved a new debt limit of up to $20 million for the wastewater treatment facility and necessary upgrades to lift stations 1 and 4.
Jace Porten, City Controller said in a report to council on the July 22 regular council meeting that the debt limits for Saskatchewan cities are established by the Saskatchewan Municipal Board (SMB), and can be increased, decreased or exceeded upon request.
The City of Humboldt currently had an established debt limit of $15 million.
At the May 27 regular council meeting, council approved a recommendation to apply to the Saskatchewan Municipal Board for a $13 million dollar increase to its established debt limit from $15 million to $28 million. Since applying, City administration has been contacted by the SMB that they would ask that the application be amended to see the city seek an increase to $20 million.
The city is in the final stages of securing the construction of the new wastewater treatment system, and the additional required upgrades to lift stations 1 and 4.
The estimated total cost of the upgrades is $40 million. Nearly $25 million will be covered by the federal and provincial government through the Investing in Canada Infrastructure Plan.
Through the end of 2023, approximately $1.7 million had been spent on the project and already funded through reserve contributions, leaving the city to fund approximately $13.3 million to complete the project
If the city needs to borrow more in the future for a project, SMB would prefer the city apply at that time for a further increase, Porten said in the report.
