The City of Estevan will be raising money for infrastructure projects by borrowing after sending a bylaw through first reading in their latest city council meeting.

They came up with a $2 million figure, which would be used for the following:

  • Duncan Road/McCleod Avenue Resurfacing        -        $500,000
  • Duncan Road/McCleod Avenue Water Main        -         $500,000
  • Biosolids Incinerator                              -                        $725,000
  • Smith Street Reservoir Electrical                  -                 $250,000

It has been a while since the city has had to borrow money as part of its plan for infrastructure.

City Manager Jeff Ward explains why they've just started now.

"This'll be the first time this council will have had to borrow. The original plan nine years ago was to continue to pay down four million dollars of debt while borrowing two million each year to complete capital projects. Over the last few years, we haven't had to do the term borrowing for multiple reasons. During COVID, there was some double-up of federal gas tax money and there was the funding that went toward the police station that was planned."

The current plan for repaying the debt has the city in a seven-year amortization, with interest compounded at a fixed rate annually of 4.26% and payments made monthly.

The current debt repayment plan goes back to an old goal that the city is still working towards.

"One thing that's been an issue for management is that we want to be as close to debt-free by 2030 and that is our line, pending any large, major capital project, but that's why the seven-year term has been put there. That equals the monthly payment amount of a loan that is now up this April, so we can operate sustainably with the same cash flow."

We'll have the info on when those projects are set to be started as soon as that's available.