Regina's debt limit might increase by $330 million. . Mayor Sandra MastersCourtesy CBC .At the city council meeting on Wednesday, most council members voted, 7-3, in favour of raising the debt limit from $450 million to $780 million. .The councillors who voted against the increase were Cheryl Stadnichuk, Shanon Zachidniak, and Andrew Stevens..The city wants to fund large projects without harming its credit. However, the city’s debt is $437 million, approaching the current $450 million limit..“Increasing our debt limit does not mean our debt grows,” said Barry Lacey, executive director of Financial Strategy and Sustainability. .“It provides council that flexibility in the future to take on debt if it deems that it is a priority for the city to do so.”.Gage Haubrich, Prairie director of the Canadian Taxpayers Federation, told the Western Standard “using even more debt to finance new projects is a fool’s errand.”.“A 73% increase in the debt limit should ring alarm bells for taxpayers. Any debt the city incurs will have to be paid back and taxpayers will be the ones footing the bill,” said Haubrich. .The city has yet to pay for previous large projects and wants to keep moving forward with large-scale projects..“The city still hasn’t paid off the debt for Mosaic Stadium and it wants to commit to even more projects? When a Regina resident wants to buy a new truck, they don’t instantly head over to the dealership, they wait and pay off the old one first,” said Haubrich. .“The city of Regina needs to go back to the drawing board on this. Government spending is about priorities, and debt is not a get out of jail free card.”.Several projects under the Catalyst Committee have significant costs, including constructing a new pool and arena. .To get federal grants for these projects, the city may face substantial expenses in the near future and need to utilize the increased debt limit..“When we were looking at the list of capital projects — from water to wastewater to stormwater issues as well as the infrastructure in the ground and then replacement of aged facilities — it just made some sense,” said Regina Mayor Sandra Masters..“We could have started smaller, but to provide that flexibility for the next 10 or 15 years is warranted. We’re looking to put it in place, frankly, so that we have the flexibility to seize funding opportunities, third-party funding opportunities, as they become available.”.Another expensive project is the Eastern Pressure Solution (EPS) Project, which received a funding increase of $53 million, bringing the total budget to $162 million. .The EPS Project is attempting to fix the water pressure in the eastern parts of the city, where the current pumps are insufficient in providing adequate water flow..While water pressure during the winter months was OK, it worsened during the summer when people watered their lawns and plants. .The project aims to ensure an “effective and consistent flow of water” throughout the year..The debt limit increase proposal will now be submitted to the Saskatchewan Municipal Board for review and approval.
Regina's debt limit might increase by $330 million. . Mayor Sandra MastersCourtesy CBC .At the city council meeting on Wednesday, most council members voted, 7-3, in favour of raising the debt limit from $450 million to $780 million. .The councillors who voted against the increase were Cheryl Stadnichuk, Shanon Zachidniak, and Andrew Stevens..The city wants to fund large projects without harming its credit. However, the city’s debt is $437 million, approaching the current $450 million limit..“Increasing our debt limit does not mean our debt grows,” said Barry Lacey, executive director of Financial Strategy and Sustainability. .“It provides council that flexibility in the future to take on debt if it deems that it is a priority for the city to do so.”.Gage Haubrich, Prairie director of the Canadian Taxpayers Federation, told the Western Standard “using even more debt to finance new projects is a fool’s errand.”.“A 73% increase in the debt limit should ring alarm bells for taxpayers. Any debt the city incurs will have to be paid back and taxpayers will be the ones footing the bill,” said Haubrich. .The city has yet to pay for previous large projects and wants to keep moving forward with large-scale projects..“The city still hasn’t paid off the debt for Mosaic Stadium and it wants to commit to even more projects? When a Regina resident wants to buy a new truck, they don’t instantly head over to the dealership, they wait and pay off the old one first,” said Haubrich. .“The city of Regina needs to go back to the drawing board on this. Government spending is about priorities, and debt is not a get out of jail free card.”.Several projects under the Catalyst Committee have significant costs, including constructing a new pool and arena. .To get federal grants for these projects, the city may face substantial expenses in the near future and need to utilize the increased debt limit..“When we were looking at the list of capital projects — from water to wastewater to stormwater issues as well as the infrastructure in the ground and then replacement of aged facilities — it just made some sense,” said Regina Mayor Sandra Masters..“We could have started smaller, but to provide that flexibility for the next 10 or 15 years is warranted. We’re looking to put it in place, frankly, so that we have the flexibility to seize funding opportunities, third-party funding opportunities, as they become available.”.Another expensive project is the Eastern Pressure Solution (EPS) Project, which received a funding increase of $53 million, bringing the total budget to $162 million. .The EPS Project is attempting to fix the water pressure in the eastern parts of the city, where the current pumps are insufficient in providing adequate water flow..While water pressure during the winter months was OK, it worsened during the summer when people watered their lawns and plants. .The project aims to ensure an “effective and consistent flow of water” throughout the year..The debt limit increase proposal will now be submitted to the Saskatchewan Municipal Board for review and approval.
