U of S to begin renovations on buildings after bond gets OK
The University of Saskatchewan is expected to spend at least four years renovating five prominent buildings on campus after the provincial government approved its request to finance the work by issuing an $85-million bond.
Work is set to begin this year on the Physics Building, the Thorvaldson Building, the W.P. Thompson Building, the Arts Building and the University Library, none of which have undergone significant renovations in at least 40 years.
While the bond won’t cover the cost of a $330-million “critical deferred maintenance” backlog identified last year, university executives in a statement called the provincial government’s decision a “very positive step.”
“It gives us an innovative and cost-effective financing solution and allows us to more quickly address critical infrastructure needs, at no additional cost to the province,” said Greg Fowler, the institution’s vice-president of finance and resources, in the statement.
Fowler said in August that the university had reached the point “where deferring renewal is not an option and given the financial situation in the province we needed to find a different approach” to financing the work.
In his final cabinet meeting as premier, Brad Wall signed off on the university ’s request, and using an order-in-council, authorized its board of governors to borrow up to $85 million “through the issue and sale of securities” such as a bond.
That sum is $5 million less than the $90 million bond the university’s board of governors asked the government to approve this summer — a request that represents an additional $110 million decrease from the $200 million in borrowing capacity it requested in 2016.
In the university’s latest operations forecast, administrators said the “risks associated with not proceeding with the critical capital renewal are substantially greater than the risks of … accruing a reasonable amount of debt and capitalizing on historically low interest rates.”
“Over the years, the need for critical infrastructure renewal has significantly outpaced our provincial funding, which is a common issue many universities across Canada are facing,” Fowler said, adding eight similar institutions have taken similar steps.
The order-in-council did not address the university’s request for $37.4 million in capital and facilities funding — some of which is earmarked for preventive maintenance — this year, a 5.6 per cent increase from the $35.4 million it asked for in 2016.