The Buffalo Pound Water Treatment Plant is looking at a surplus of about $1.1 million in 2020.  

A semi-annual report was given to Moose Jaw city council on Monday night. 

The surplus is expected to be transferred to the treatment plant’s operating reserve to decrease the amount it would need to borrow for projects. 

Ryan Johnson, general manager of the Buffalo Pound Water Treatment Plant, said the plant is nearing its life cycle and they will have a number of expenses coming up soon. 

“The ageing infrastructure, lack of redundancy, dated technology, ever-increasing regulatory requirements, and the difficulty we have to operate with limited controls with a poor and variable source of raw water are all challenges that we're currently facing.” 

He said the surplus happened because the plant cut costs during the COVID-19 pandemic, while there was no decrease in water sales.

There are no new projects happening at the plant with expenditures over $1 million starting in 2021, but there are a few ongoing projects that will continue into this year. 

The electrical capital upgrade project consists of the lake pump station transmission line replacement, lake pump station pumping upgrades, power supply and UV corrective action and warranty work is about 90 per cent completed and the project is expected to wrap up in 2021. 

The plant renewal project rolls along. The design portion began in June of 2020. The design cost is $30 million that is funded through Buffalo Pound’s capital budget and reserves. 

The supervisory control and data acquisition upgrades have about $6 million worth of work left to be completed. The project has been put on hold as the plant awaits the outcome of the plant renewal RFP being awarded. 

Buffalo Pound’s 2021 budget also includes $7 million for ongoing interest payments for a $45 million loan taken out in 2017 for the electrical capital upgrades and an anticipated $60 million loan for the plant renewal project. 

As well, water rates for 2021 were presented to city council. 

The operational water rate for the city will be increasing by 1.41 per cent. Johnson said there will also be an increase to the capital water rate. 

“The capital rate increase would be about 16 per cent, which is the last of several years of rate increases to get the water rate to sustainable levels.” 

Finally, there will be no increases to the electrical rates. 

The Buffalo Pound Water Treatment Plant Corporation is 74 per cent owned by the City of Regina and 26 per cent owned by the City of Moose Jaw.