Councillors in Black Diamond and Turner Valley are hopeful a federal grant will help cover the costs of a multi-million dollar upgrade to their sewage treatment system.
The Towns are collaboratively applying for the Investing in Canada Infrastructure Program (ICIP) grant as they prepare for a $17.34 million upgrade to the Westend Regional Sewage Services Commission to bring the lagoon system up to existing standards.
The commission, established in 1994 and owned and operated by the two towns, supplies sewage transmission and treatment services and is funded through requisitions to each town.
Black Diamond Coun. Brian Marconi said with the commission’s existing permit expiring in 2026, the facility will have to meet new effluent requirements and limits set by the Province upon renewal. The facility’s chemical levels currently don’t comply with the new standards, he said.
“If we don’t get that government grant it’s going to be about $200,000 a year per town and we still haven’t recovered the actual principal amount yet,” he said. “That would be a big hit. Small towns can’t afford $18 million upgrades.”
The grant, if approved, would contribute $6,936,000. This, combined with the Province’s contribution of $5,779,422, would cover almost 75 per cent of the price tag, said Marconi.
The commission and municipalities would then contribute $1,119,338 from capital reserves and off-site levies ($260,728 from Black Diamond and $141,000 from Turner Valley), leaving $3.5 million that the Towns will have to borrow and recover via requisitions through utility bills issued to businesses and residents.
Without grant approval, Marconi said the Towns would have to foot 40 per cent of the estimated $17.34 million cost, requiring them to borrow almost $6 million.
Turner Valley Coun. Gary Raab, who often advocates to keep expenses to a minimum at the council table, said the Towns’ hands are tied when it comes to this project.
“It’s not something anybody wants to do but by the end of 2026 we have to have our numbers in line with what they expect, we need to get it more effective and we have to get a better system to deal with the effluent,” said Raab. “It’s a multi-million project so it will definitely reflect on our utility bills because we have to pay it back.”
To borrow the remaining funds for the lagoon upgrade if the grant is approved, the commission must request a debt limit increase from the Province. The commission’s debt ceiling is at $1,535,968. The commission requires approval to increase it to $3,894,069 to qualify for the grant.
Earlier this week, councils in both towns passed unanimous motions to provide a letter of support to Municipal Affairs for the debt limit increase.
The application deadline for the ICIP grant was recently changed from March 31 to March 12. Recipients are expected to be announced this fall.
The Westend Regional Sewage Services Commission currently has a debt of $560,787, according to information provided by the Town of Turner Valley.
