The City of Saskatoon’s power utility is grappling with a funding shortfall for infrastructure repairs and maintenance.

A report tabled at city hall Monday says most of the infrastructure operated by Saskatoon Light and Power is in “good or very good” condition, but it says some components are in “fair to very poor condition” and will need more attention.

The same report also identifies an annual funding gap of $7 million for capital rehabilitation. Saskatoon Light and Power invests about $16.1 million for infrastructure repairs and maintenance each year, but the report says administration’s internal asset management analysis shows $23.1 million is needed to achieve targets for infrastructure condition.

Administration says unless the funding gap is addressed, there is a risk that infrastructure could begin to “deteriorate quickly.”

The city is looking at a funding plan that would allow Saskatoon Light and Power to cap the amount of money it returns back to the city, and use the rest for infrastructure upgrades or repairs. The cap would stay in place until 2022.

The city says Saskatoon Light and Power has over $702 million in assets, including street lights, substations and overhead and underground distribution networks.