Borrowing underway for city utility projects

By Medicine Hat News on February 7, 2025.

@MedicineHatNews

City council has begun the process to borrow $51.7 million to fund an initial batch of utility construction projects over the next two years.

That includes work to twin a main water line feeding the south end and about one-third of households, and secure river-bank erosion near the city’s sewage treatment plant in 2026.

Projects were approved in the city’s 2025-26 budget that was passed in late December, and bylaws to secure debentures on 19 projects were introduced at council’s meeting on Monday.

Water reservoirs in Southview, South Ridge and the north end would also be subject to “rehabilitation” work, totalling $4 million.

Electric distribution projects total $14 million, mostly for substation renewals, and $5 million in gas system upgrades will see service improvements for customers in Norwood and Redcliff, among other work.

The lone municipal works project in the batch involves Third Street rehabilitation in the city centre, valued at $2.4 million, less $500,000 in grants.

Grants could also cover half of a $3-million proposed trail maintenance and upgrades budget.

Potential grant funding could pay $4.3 million of the $6.2-million cost estimate to improve eroding banks at the waste water treatment plant across from Police Point Park, according to a schedule of projects and costs presented to council.

Revolving annual budgets to replace portions of aging sanitary sewer and potable water pipe replacements each year total $7.7 million and $5.8 million in 2025, respectively.

The total cost of the projects is $63.9 million with the difference filled by a combination of grants, working capital and reserve funds.

Council will hear second and third readings of the bylaws for approval on March 3.

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