By KEVIN BERGER, Local Journalism Initiative
The City of Martensville is withdrawing its application to increase its debt limit from $40 million to $70 million as administration has been informed this would contravene provincial legislation.
City of Martensville councillors passed a motion during their March 3 meeting to withdraw the debt limit application to the Saskatchewan Municipal Board (SMB), which council had previously approved in November.
Martensville sought to increase its debt limit by $30 million in anticipation of some major upcoming capital projects, including the $21.5 million water and wastewater project to greatly increase the city’s water capacity.
Back in November, 2025, Martensville Director of Corporate Services Leah Bloomquist had told council that the city’s projected debt exposure by the end of 2025 would be more than $34.88 million, which is 87% of its current debt limit.
The SMB is an administrative tribunal that, among other duties, establishes debt limits for municipalities that allow them to borrow money without approval from the Local Government Committee (LGC).
After consulting with SMB officials, Bloomquist indicated she had been told they would be unable to support the application because legislation states the primary measure for determining a city’s debt limit is two times the municipality’s sole source revenue. In the case of Martensville, that amount is $20 million.
“Essentially how the (SMB) director explained it, they cannot support an application that goes against current legislation, which falls back to that two-times municipality’s sole source revenue,” Bloomquist said.
“They have, however, provided what our path forward can be for additional borrowing outside our debt limit when that time comes.”
The SMB instead suggested the city could apply for approval of borrowing that would exceed its debt limit when that borrowing is eventually required.
Bloomquist said the city can likely complete its second borrowing for the Martensville Recreation Centre (MRC) without needing SMB approval. Once that is done, Martensville’s overall debt exposure will be reduced.
However, the city will likely need to apply to the SMB to exceed its debt limit once it becomes time for the water and wastewater project to proceed. Given how that project supports the city’s additional population growth, it will likely be supported, she indicated.
Bloomquist further noted that the city will have to consider other borrowing for projects in the five-year capital plan or hold off on those projects entirely.
One example she gave in her report is a proposed new policing building that may now not be advanced until they have sufficient borrowing capacity.
“When we bring the budget back later in March, we will have some amendments to … the five-year capital plan that was previously presented, to ensure that is reflected,” she said.