Faced with prices that could soar beyond their worst nightmares, councillors for the MD. of Lesser Slave River bit the bullet last week. agreeing to proceed with what could be a $14.4 million project. They were also staring down the prospect of putting the municipality in a position where it couldn’t borrow any money for the next 20 years.
So instead they agreed to tap into their reserve funds to avoid saddling ratepayers with monster interest-doubling debentures as they build a sewer system for the Southshore communities of Canyon Creek, Widewater and Wagner.
“I’ve always hated those reserve funds, and can’t see any sense in taxing ratepayers so we can save them money,” Councillor Karl Gongos said, applauding CAO Allan Winarski’s suggestion to borrow the least amount possible by tapping into a $7.5 million reserve fund.
Councillors had just heard that contract bids have been soaring high above what administrators had anticipated. Add to that the problem that council could be pushing the envelope with its borrowing limits, and the news wasn’t good, the CAO admitted. And the fact that a new sewer system could cost property owners as much as $11,000 apiece to tie into.
But a late night thought and a nod from the man who has masterminded the project might work, he added, obviously uneasy with the ‘curve’ he admitted to be throwing at council.
“This could be the biggest project you ever undertake, he told councillors. And while “the project with respect to a municipality of this size is very significant,” he added, “it really is something to be proud of.”
Council always has the option of borrowing the cash to pay for its projects, but in this case, “if we debenture out the maximum, we’ll be tying the hands of the next 6.66 councils.”
And at the same time, borrowing sums of that magnitude will surely mean doubling the debt over the next number of years.
But if they take cash from reserve funds and unexpected costs materialize in other areas, “you will still have the ability to borrow.”
Councillors put their stamp of approval on the plan by unanimously agreeing to four motions. The first was to spend $14.4 million on the project, the second to transfer $4.436 million from reserves to ease the debt. And knowing they’ve qualified to receive $5.247 million in ICAP (Infrastructure Canada-Alberta Program, green fund dollars), councillors agreed to debenture the final $4.72 million with property owners picking up $3.2 million of that through local improvement charges over the next number of years.
In a later interview, Winarski told The Leader those charges will likely show up, beginning the 2005 tax notices.
Finally, at last week’s meeting, councillors gave first reading to a borrowing bylaw that’ll allow them to proceed with the project after they go through a public hearing for the bylaw for Monday, June 28 at 1:00 p.m.
“This is one of the largest projects I’ve seen,” Winarski said. “But the cost is driven by need. Traditional wastewater treatments were not of sufficient standard for the Lesser Slave Lake watershed, and led us to higher standards and unfortunately, higher costs.” And this is truly a gold standard, he added.
“When you’re seeing this being used in National Parks like Yoho Park – in that this technology is being used in environments where there is an enhanced need to protect” you know its cutting edge.
“Of course some can question it, but the reality for the M.D. is that sometimes you have to spend money in concentrated areas because you have done it elsewhere.
“It’s for health and the environment, and while road projects can be prioritized and re- prioritized, but when it affects health and the environment the way sewage effluent does, this is of fundamental importance.”

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