City of Saskatoon plans to internally borrow $3.5 million for new garbage bins

The wheels are in motion – so to speak – for the City of Saskatoon to internally borrow $3.5 million to fund the purchase of new residential garbage bins.

Clae Hack, the city’s chief financial officer, said internal borrowing is used for relatively small amounts of money. Instead of city cash balances put into investments, it’s used as financing for a particular project instead.

In 2024, the city’s garbage collection program will move from being funded by property taxes and will show up on monthly utility bills instead, just like the green cart program for compost.

The money borrowed is expected to be paid back over 10 years through garbage utility rates. Annual payments – which will include interest – are expected to add up to $419,300.

Jeanna South, the city’s acting utilities department general manager, presented a report on the matter and gave councillors a progress update at Tuesday’s environment, utilities, and corporate services meeting.

“Capital funding is required to procure the smaller black garbage carts prior to the 2024 program start,” she told the committee.

“A report will be presented to committee this fall regarding the variable black cart program, including specifics on proposed rates, timelines, processes and communication strategy,” she added.

According to the report, 25 to 40 per cent of residents are expected choose a smaller black cart when the program rolls out. The size options for residents include small carts with a capacity of 120 or 135 litres, medium-sized 240-litre carts, or the current 360-litre carts.

The motion to approve the borrowing was unanimously approved by the committee, but city council still has the final say.