The City of Meadow Lake is in need of some quick cash. During the regular meeting of Meadow Lake city council held Monday (March 10), a motion was carried authorizing city administration to request the Saskatchewan Municipal Board increase the debt limit for the City of Meadow Lake from $8 million to $20 million. “The city’s debt limit was increased to $8 million Nov. 6, 2012 and re-established in April of 2016,” explained city treasurer Asma Qadri in her official recommendation to council. “The city needs to increase its debt limit from $8 million to $20 million in order to acquire funding through borrowing to meet the remaining construction costs for the Co-op Centre (the new arena and recreation facility currently under construction on the city’s east side).”

The cost to build the Co-op Centre is forecasted to be $52 million. Approximately $27 million in funding was awarded through the Investing in Canada Infrastructure Program (ICIP) grant while an additional $11 million has been received to date from insurance proceeds. This leaves a shortfall of $14 million. “The city has been successful in acquiring sponsorships and donations equivalent to $7 million to date, however these commitments are to be received over a period of time – between five to 15 years – and cannot be directly applied toward the Coop Centre building costs,” Qadri continued. “Further sponsorships are hoped for, and insurance proceeds are expected, however, when and how much can be expected is unknown at this time.”

Qadri went on to note, in order to meet the shortfall of $14 million, the city would need to acquire long term debt; and needs to increase its debt limit to do so. “In order to increase the city’s debt limit, a resolution is required of council so an application can be made to the Saskatch ewan Municipal Board,” Qadri said. “Council may also request an adjustment to the city’s debt limit increase if they feel a change is warranted.” The motion to increase the debt limit was made by councillor Conrad Read and second by councillor Mauri Young. Read asked if their were any concerns received with regard to the proposed debt limit increase following the issuing of a recent public notice. Qadri said there were none. “We need this money to pay the bills while waiting for the other money (donations) to come in,” Young stated. Mayor Merlin Seymour agreed.

“A lot of the commitment to the new facility from people and organizations is a commitment over time,” Seymour said. “Unfortunately, we have to pay the bills first. That’s the rationale in order to do this (increase debt limit). For example, the Meadow Lake Co-op has committed $3 million, but they aren’t cutting a cheque for $3 million right now. I want to make sure everyone is aware of why we’re doing this.” The motion was subsequently carried. According to city officials, the Co-op Centre is now scheduled to open in early May.