Saskatoon Compost Facility Delayed by Rising Costs, New Budget Confirmed

UPDATE: The plan to build a crucial compost facility in Saskatoon has been delayed by one year due to soaring costs that have surged to $30.5 million, up from an initial estimate of $22.1 million. This urgent development was revealed during a committee meeting on Tuesday, where officials emphasized that a city-operated facility remains the most cost-effective option for taxpayers.

The increase in budget is partially offset by a $8.4 million grant from the Canada Housing Infrastructure Fund, but concerns about escalating construction costs are mounting. “We’re living in this ever-escalating run to see how much things can go up, and it’s obviously not a sustainable plan,” stated Mayor Cynthia Block during the meeting.

As it stands, the facility was originally slated for completion next year near the Saskatoon landfill, but construction is now expected to commence in spring 2025, with a revised completion date set for sometime in 2027. The city’s general manager of environment and utilities, Angela Gardiner, reported that all bids for the project exceeded the approved budget, indicating a troubling trend in local construction capabilities.

The delays follow the collapse of a previous plan to contract a private company to build and operate the facility in the Rural Municipality of Corman Park, where the proposal was rejected by local council. Gardiner noted that only one private company is capable of constructing and managing a plant in the Saskatoon region, although she did not disclose its name.

Brendan Lemke, director of water and waste operations, highlighted that local bidders were “very unfamiliar” with compost facility construction, leading to inflated bids. “We’re dealing with risk more than inflation,” Block remarked, emphasizing the complexity of the situation.

The city estimates that operating a city-run facility will save approximately $1 million annually compared to outsourcing to a private entity. Furthermore, nearly 10 new full-time positions will be created to manage the facility, which will process organic waste collected from single-family homes through the city’s green cart program.

In addition to the composting facility, the committee approved the ongoing suspension of the federal industrial carbon tax for Saskatoon Light & Power customers, a measure intended to keep residents’ electricity costs manageable. This follows Premier Scott Moe‘s announcement that Saskatchewan has become the first carbon-tax-free province, pausing the tax collection.

Customers within Circle Drive can expect to save an average of $10.46 each month due to this suspension. However, it may lead to a projected deficit of $476,400 at the end of next year for the utility, raising concerns about long-term financial sustainability.

As the city council prepares to render final approval on the revised budget for the compost facility, residents are urged to stay informed about these critical developments. The implications of these decisions will significantly impact both the environment and the local economy in the coming years.