Sewer capacity to increase in Steinbach

A project that could cost up to $6.6 million was approved by Steinbach council on Tuesday.

A bylaw to approve the borrowing of funds to install just over three kilometres of new force main along Park Road West from the lift station to the lagoon as well as a lift station upgrade was approved unanimously by council.

City manager Troy Warkentin told council the project would increase the sewer system capacity in the area and add redundancy to the city’s sewer system.

The total project cost is estimated at $6.56 million of which as much as $2.75 million will come from borrowing.

With an estimated maximum interest rate of seven percent, the $2.75 million will be paid back over five years.

The balance of the project costs will come from grant funding ($3.26 million), the city’s utility reserve fund ($475,000) and the utility operating fund ($110,000).

The tax impact calculated on the worst case scenario would see a mill rate levy increase of 0.488 mills.

That would generate an annual property tax amount of $54.94 for a residential property valued at $250,000.

However, the city points out that does not mean taxes will rise by that amount as other debt is scheduled to be retired.

Coun. Susan Penner made the motion to approve the local improvement plan, saying this is an example of what council’s most important job is, maintaining and creating infrastructure.

“This project will increase capacity for our community which is really important,” she said. “We’ve seen other communities, not too far from us, who’ve had investment and building stalled because of their inability (to expand) or their sewer has reached capacity.”

Coun. Jac Siemens agreed, stressing the fact that the project numbers are not final and that the interest rate will be better than seven percent which is presented as the worst case scenario.

“Approximately 30 years ago there was a plan to twin it, and we need to do that now as we have had a lot of housing growth,” he said of the force main.

He added it’s also part of a plan which will include lagoon expansion sometime in the next five or six years.