A Moment with the Mayor: How the City plans infrastructure projects and funding

Decisions around when to build municipal infrastructure, and how those projects are funded, have evolved over time. While the process can be complex, the goal remains the same: to ensure the City can build, maintain, and grow responsibly.

In the past, capital projects were typically funded through a combination of property taxes, provincial and federal grants, and municipal reserves. For a period of time, construction did not move forward until a project could be fully paid for without borrowing.

One of the final examples of this approach was the Servus Sports Centre. The $28.5 million project was completed without debt, supported by more than $8.5 million raised locally, alongside municipal reserves and provincial grant funding.

As the community grew, so did the scale and urgency of infrastructure needs. Projects such as the new RCMP detachment, which replaced a facility that had served the community for decades, reflected rising costs and increasing service demands. The City Operations Centre and supporting storage facilities were also developed to replace aging infrastructure that could no longer meet the needs of a growing municipality, particularly during the city’s extensive growth during the early to mid-2000s.

Today, long-term planning tools such as master plans and asset management strategies play a significant role in guiding infrastructure decisions. These plans help forecast future needs and estimate costs, allowing the City to continue preparing for major investments in a structured and proactive way.

Over the past several years, major capital projects have increasingly relied on a combination of reserves, grants, and debt financing. The Wastewater Treatment Facility is one example. It was funded through provincial and federal grants alongside long-term borrowing, with repayment scheduled over approximately 30 years. The construction of Fire Station No. 1 followed a similar approach.

In both cases, relying solely on reserves would have delayed construction for many years while costs continued to rise. In addition, regulatory requirements, particularly for wastewater treatment, required timely action, with potential penalties for non-compliance.

Municipal debt is a regulated and approved financing tool under provincial legislation. While municipalities are not permitted to operate with a deficit, they are allowed to borrow within strict limits to support major capital projects. These projects must be approved through bylaw, and repayment terms are established with transparency for taxpayers.

Through careful financial management, the City continues to balance the use of reserves, grants, and debt to meet infrastructure needs. This approach supports the continued growth and maintenance of the community, both now and into the future.

Mayor Gerald S. Aalbers
City of Lloydminster