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Canal Flats to hold AAP over borrowing for sewer work
The Village of Canal Flats has initiated an alternative approval process (AAP) to authorize the possible borrowing of up to $950,000 to perform infrastructure work on its sewer system.
“Some village infrastructure, especially the sewer lift station near the ‘Subdivision’ in Canal Flats, was built in the 1960s and is near the end of its service life and needs replacement,” the village stated August 20.
Village council initiated the AAP, as per the Community Charter, to fund that replacement work, as well as fund a portion of the replacement of the village’s sewer lagoons.
“In order to ensure no eventual sewer service interruption, and the ongoing safety of village staff who operate the sewer system, the village needs to self-fund through borrowing for replacement of the lift station. This critical piece of infrastructure is estimated by engineering to cost up to $700,000 on its own to reconstruct,” the village outlined.
The village’s sewage treatment plant, which dates to the early 1980s, is in poor condition, it reports and there is an opportunity to benefit from possible funding to fix it.
“The liner has visible rips and the electric system is old and in need of replacement. The village made application for another federal and provincial grant to cover 73.33% of the total replacement cost estimated by engineering ($913,000). If granted this will leave the village responsible for just 26.77% of the total cost. The cost to the village for just over one-quarter of this project is estimated at just under $250,000,” the village reported, adding “it is great value” fir taxpayers if a $913,000 fix can be done for $250,000.
However, borrowing will also be required for the lift station work.
“For the lift station, the cost of borrowing the up-to $700,000 over 30 years at current interest rates, would be no more than 54 cents per year per frontage foot for property owners in the sewer user area,” the village said.
“For the sewer treatment plant, if the grant is successful and this money is needed, it will mean replacement of critical and expensive infrastructure at about 27 cents on the dollar. If the borrowing is needed, the cost of borrowing the up-to $250,000 at the same terms as above would be 18 cents per year per frontage foot in the sewer user area. If the grant is unsuccessful, the money for the sewer treatment plant will not be spent.”
The number of elector responses required to prevent the village from proceeding is estimated by the village to be 50.
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