Regina city council approved increasing the city’s debt limit by $330 million.
Following the vote in favour of the increase, the city must apply to the Saskatchewan Municipal Board to approve the debt limit increase from $450 million to $780 million.
“Considering the commitment City Council has made to the Catalyst Committees’ study and the infrastructure gap identified by City Administration, it is recommended the Executive Director of Financial Strategy and Sustainability proceeds with the application to the Saskatchewan Municipal Board (SMB) to apply for a debt limit increase,” the report to council read.
Administration also points to the potentially large capital projects that will require debt funding in the future but have yet to be considered, projected, or planned debt.
- Increasing Wastewater Treatment Plant Capacity;
- Ring Rail Relocation;
- Multi-Purpose Event Centre;
- Regina Public Library; and
- Other growth-related projects, including the Eastern Pressure Solution Project and others under the Development Charges Policy, require financing.
The majority of the projects are expected to cost over $500 million.
Increasing the City’s debt limit would also position the City to react quickly should other funding sources (federal, provincial, private sector) be identified to support the financing of these projects.
The last time the City raised its debt limit was back in 2013, from $350 million to $450 million, which at the time, represented 85 per cent of the City’s consolidated revenue.