The Saskatchewan government is handing Sask Water nearly twice as much money as last year.
The March 29 provincial budget increased the crown corporation’s allocation from the general revenue fund by 93 percent to $9.4 million.
“The singular reason is because we’ve put money into infrastructure,” said Maynard Sonntag, the minister responsible for Sask Water.
“It’s specifically capital projects that have been overdue.”
The lion’s share of the increase will go to two main projects, said Dave Schiman, manager of financial planning at Sask Water.
Read Also
Agriculture ministers agree to AgriStability changes
federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
He said the corporation will spend $2.8 million completing rehabilitation of the outlet structure at Buffalo Pound Lake north of Moose Jaw.
The structure was built in the 1940s and Schiman said the work will make it modern and safer to operate. As well, the embankment will be raised.
Schiman said the outlet ensures that the lake’s water level is high enough to supply the cities of Regina and Moose Jaw, as well as rural customers on those lines.
The project began last year and will be finished this year.
The other large expenditure will be at Rafferty Dam in the southeast, where between $1.5 and $2 million will be spent on the upstream embankment.
Schiman said Sask Water looks after 45 water control structures on behalf of the province. Several smaller projects are also included in this year’s budget.
Economic development
The corporation also received an increase for economic development. This is the final year of the federal-provincial Partnership Agreement on Water Based Economic Development.
Schiman said the $400,000 increase was needed to meet the provincial commitment to that program.
The province also increased Sask Water’s operating subsidies for “non-utility activities,” which Schiman said is related to aboriginal treaty land entitlement claims.
The corporation reviews land selections and decides if certain waterways should be excluded from the claim or transferred to reserve status.
“As the provincial water manager, we make sure the provincial interest is retained.”
Schiman said the province did not provide grants to the corporation specifically for its potato division.
Sask Water earns most of its money from water supply and transmission.
Meanwhile, Sonntag said the rebound of potato prices, seed potatoes in particular, has exceeded
expectations.
“I think the future looks quite bright again in the potato industry. We’ve got more bins rented out this year than we projected that we would have.”
