The City of Calgary is looking to borrow $1 billion for water infrastructure projects in response to a critical rupture of the Bearspaw feeder main. City officials are seeking approval to borrow up to $1,038,718,000 for water resources, with a maximum term of 25 years. The administration believes that the lack of redundancy in the city’s water system could have significant implications for infrastructure failure. The proposed projects include advancing two new feeder mains to the north and south, as well as a new water treatment plant near the Bearspaw Water Treatment Plant.
According to the budget documents, the city’s infrastructure plans are not keeping pace with growth, leading to a risk of insufficient treatment and distribution capacity. Calgary Mayor Jyoti Gondek emphasized the importance of moving forward with strong infrastructure projects to accommodate the city’s growth. However, details on the budgets for the projects are lacking, with timelines extending beyond the current 2023-2026 budget cycle. Ward 1 Coun. Sonya Sharp expressed concerns about the lack of specific details before borrowing such a substantial amount of funds, emphasizing the need for more information about costs and timelines for the proposed projects.
The proposed loan would be repaid through off-site levies and user fees, which are set to increase in the upcoming budget cycle. City administration is recommending utility rate increases in 2025 and 2026, expected to cost the average homeowner an extra $5.09 per month in 2025 and an additional $5.46 per month in 2026. The rate increases will also fund new infrastructure and cover base operating expenditures of $105 million in 2025 and $40 million in 2026. The projects are seen as essential to meeting the city’s infrastructure needs, but concerns remain about the unknown costs associated with the proposed water infrastructure projects.
While city officials are eager to move forward with the water infrastructure projects, members of the council, such as Coun. Sonya Sharp, are seeking more detailed information before committing to borrowing such a significant sum. Sharp highlighted the importance of having a clear understanding of the costs and timelines for the projects before proceeding. The lack of specific information on budgets and timelines for the water infrastructure projects has raised concerns among some council members, who want more clarity before approving the borrowing of $1 billion.
City council will begin budget deliberations to discuss the proposed borrowing of $1 billion for water infrastructure projects. The administration believes that investing in new water infrastructure is essential to addressing the city’s growth and maintaining the reliability of the water system. The proposed projects, including new feeder mains and a water treatment plant, aim to increase redundancy and capacity in the water system to prevent future failures like the Bearspaw feeder main rupture. However, concerns about the unknown costs and timelines for the projects remain, prompting council members to seek more detailed information before making a decision on the borrowing proposal.
