The Buffalo Pound Water Treatment Corporation (BPWTC) hopes its application for $220 million in federal funding is successful, otherwise, it might have to double water rates to cover capital infrastructure costs.
The corporation intends to apply for the second intake of the Investing in Canada Infrastructure Program (ICIP) green infrastructure stream as a regional project by March 31. The funding would support its water treatment plant renewal project.
During its March 9 regular meeting, council voted unanimously to authorize the corporation to submit its application, as long as it doesn’t jeopardize the City of Moose Jaw’s ICIP applications.
According to a council report, since the water treatment plant (WTP) is a regional building that provides water to the Moose Jaw and Regina areas, it is believed the corporation’s application can be approved without affecting the municipality’s submissions.
“The impact of grant funding is significant,” the reported added. For every $50 million of grant funding received, the cost would be reduced to the cities, and by extension, the end consumers by $100 per megalitre (ML) or 10 cents per cubic metre of water, respectively.
Ryan Johnson, general manager of the Buffalo Pound Water Treatment Plant Corporation, spoke about the application.
Presentation
When the corporation applied for funding in 2018, it received $20.6 million under the Provincial-Territorial Infrastructure Component (PTIC), Johnson explained. The federal government has accepted that the water treatment plant is a regional structure that supplies water to communities as far as Bethune, Sedley, Mortlach, and Briercrest. About 260,000 people consume water from the Buffalo Pound WTP.
“We believe there shouldn’t be any issues going forward,” he added.
Council discussion
The corporation has performed several economic analyses and doesn’t expect the $220 million price tag to change much, Johnson told Coun. Scott McMann. However, the organization still has to conduct a detailed design plan, so the cost could be near the upper limit of $224 million.
There are water meters that measure usage by Regina, Moose Jaw, SaskWater, area farmers, and Buffalo Pound Provincial Park, Johnson told Coun. Brian Swanson. Any revenue from the meters goes back to the corporation, which reduces the cost to the municipalities.
While Regina owns 73 per cent of the water treatment plant and Moose Jaw owns 27 per cent, SaskWater owns only equipment in the building. However, the corporation plans to purchase that gear soon.
Since Moose Jaw owns 27 per cent of the WTP, of the $220 million cost for renovations, the municipality will be responsible for roughly $56.5 million, said Swanson. That means it will have to increase its debt limit by $44 million.
If the corporation received no federal funding, then after receiving approval from both city councils, it would increase water rates on the capital side to $550 megalitres (ML) from $215 ML, said Johnson. If somehow the maximum amount of grant funding was received then rates would drop to where the corporation would have to increase rates by $10 to $15.
It’s more realistic that the BPWTC will receive $150 million to $175 million, he added. The provincial government has told the corporation it wants to see the project funded.
The report to council contains the clause that the corporation can submit its application as long as it doesn’t jeopardize any other projects, said Swanson. He wished that that clause had been in other submissions for regional projects, such as the municipal airport and swimming pool.
“If I had the choice between funding Buffalo Pound and the new pool, I know which one I’d take,” he added.
Coun. Heather Eby agreed, adding the Buffalo Pound project is probably more important than the cast iron water main project since the WTP is where everything starts.
The next regular council meeting is March 23.
