City begins process to amend Borrowing Bylaw

Lloydminster, AB/SK — The City of Lloydminster is seeking to amend its Borrowing Bylaw (Bylaw No. 03-2022) to fund $7.38 million of the $101.3 million Cenovus Energy Hub project. While the construction project remains on budget and on schedule for completion in fall 2025, a shortfall in provincial funding has required the municipality to assume a larger portion of the total cost.

During the regular City Council meeting on Monday, April 28, 2025, Council approved Administration’s request to begin the process of amending its Borrowing Bylaw. 

“Early in the planning stage of Cenovus Energy Hub, we anticipated Alberta would provide some measure of support for the infrastructure of our new event facility, especially considering the many social and economic benefits it will bring to our entire region,” said Mayor Gerald Aalbers. “Historically, Alberta and Saskatchewan have found ways to collaborate and equitably fund important infrastructure in our unique border community, however, in the case of the Cenovus Energy Hub, Alberta has not yet confirmed any form of financial support, which has obligated the City of Lloydminster to borrow additional money to ensure the project is fully funded.” 

In months ahead, City Administration will continue to explore eligibility for upcoming grants and Mayor Aalbers said Council remains hopeful that Alberta will give further consideration to the City’s request for infrastructure funding. 

A first reading of the Borrowing Bylaw amendment will be brought forward during the May 5, 2025, City Council meeting. Second and third readings of the bylaw amendment are scheduled to occur on May 20, 2025, pending Council’s decision. 

Background 

• In April 2023, the Government of Saskatchewan announced that Lloydminster’s new event facility project would receive $33,128,508 in grant funding, including $16,463,508 from the federal government. To receive the funding, the City of Lloydminster was required to commit $16,871,492 in municipal funding and provide a detailed construction plan. With these commitments in place, the City of Lloydminster began advocating for additional project funding from the Government of Alberta.
• The City of Lloydminster was required to spend the Government of Saskatchewan grant by April 2026.
• In December 2023, Council approved the project budget, which included three funding options: borrowing, grants, and reserves.