Town still moving ahead with lagoon upgrades despite higher cost

Mayor Ames Leslie said despite the increase, the town is coming out ahead on this project since it first expected to cover the whole cost itself over three years from taxes and reserves, but instead was awarded federal and provincial funding.

“At the end of the day we are still only paying 50 cents on the dollar roughly, for this project,” he said. “We’re still having half the project paid for by other members of government. So we’re looking forward to having it done in one complete cycle, instead of over three years.”

As previously announced, the federal government will contribute $2,106,000, and the province $1,754,825, which would have initially left the town to cover the remaining $1,404,175 of the $5,265,000 budgeted amount in the partnership.

The town submitted an application early with the federal government and the joint partners with the provincial government for the three-way cost-share arrangement. Since that time, more requirements emerged that weren’t included in the initial application, adding to the total cost.

Council agreed with administration’s recommendation to award the lagoon de-sludging, enlargement and upgrade project to Battleford-firm Sanburn Construction Ltd. for a total cost of $7,308,000. The additional $2,043,000 cost above the original amount budgeted will be funded through an internal loan from the town’s General Fund at a variable interest rate for a term of 25 years.

“A lot of municipalities will borrow from themselves if they have the cash to do it, instead of increasing taxes or utility rates, or borrowing from a third party,” Leslie said of council’s decision to fund the outstanding amount internally. “It makes a little more sense because you are paying the interest yourself; you’re not paying interest to somebody else. The town has the capability to do it because the cash reserves by previous councils and administrators has been built up to a positive level that we’re able to take advantage of this.”

Coun. Judy Pruden said during the meeting the grant funding from the federal and provincial governments was a “saving grace for us” to help with the total cost of the project overall, adding that “the sooner [the initiative] gets done the better, and we can get on with it.”

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angela.brown@jpbg.ca

On Twitter: @battlefordsnow

by Angela Brown

Town still moving ahead with lagoon upgrades despite higher cost

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