The Buffalo Pound Water Plant Corporation came to Moose Jaw City Council on Monday night for approval for Moose Jaw’s share to borrow $55 million to complete its plant renewal project.
The water treatment plant is owned by the City of Moose Jaw and the City of Regina, with Moose Jaw holding a 26 per cent ownership or $14.3 million for the loan.
The Buffalo Pound Water Treatment Plant Corporation would be the entity taking out the loan. The City of Moose Jaw would be providing a guarantee to the bank for the $14.3 million.
Another caveat is the interest rate. If the interest rate is 5.8 per cent or less, the city will execute the agreement. If it is above 5.8 per cent, the financial services department will return with a report to obtain further approvals from the city council.
“While those funds are not required until 2024, with the recent rise…