The Town of Okotoks has set aside what it believes is a fair sum to buy more water licences to serve a population of 30,000 people.

The Town’s 2010 capital budget, approved by council last week, includes $3.75 million to go towards the purchases of licences.

The amount is based on a water licence acquisition fee of $5,000 per acre-feet charged to developers.

“It’s a well researched and educated estimate of market pricing,” said municipal manager Richard Quail. “We believe the $5,000 per acre foot amount is in the ball park.”

With the levy paid by developers, he said the cost for the licences will be covered by future growth in Okotoks.

Quail said the market for water licence transfers is undeveloped and a pricing system for licences hasn’t been determined.

The Town needs to increase the amount of water it can draw out of it wells in the Sheep River aquifer for the Town to be able to reach its population cap of 30,000.

The Town’s existing licence capacity is enough for a population of about 24,000 to 24,500. The Town’s population in June 2009 was 21,690.

The Town needs to increase its existing licence allocation of 600 million gallons of water per year by approximately one-third for a population of 30,000 people.

The Province placed a moratorium on new licences from the South Saskatchewan River basin, but it allows licences to be purchased from existing holders. The Town is working with a consultant to identify water licences it can buy from existing users.

2010 capital budget down

Quail said the nearly $23 million 2010 capital budget is more low-key than last year.

He said the 2009 capital budget was a substantial document, which called for $61 million in capital projects. Half of last year’s budget was the $33 million 32nd Street bridge.

He said the Town was able to start work on a number of major capital projects last year, including the bridge and an expansion to the water treatment plant that will be completed this year. This will still take up a large part of the Town’s resources, said Quail.

“We had some big ticket projects in 2009 that are carrying through and we’re still working on,” he said.

The main project in this year’s budget is the $12.1 million Southridge Emergency Services Building, which will house the RCMP, Municipal Enforcement and a south side fire station. The budget also includes two new vehicles and more than $100,000 in equipment for the fire department.

The capital budget includes the funds for new vehicles and equipment for Town departments, paving of Daggett Street from Centre Avenue to North Railway Street and upgrades to the Okotoks recycling centre.

The budget also includes a feasibility and pre-design study looking at potential changes to the Town’s operations centre.

“It’s looking at the development capacity of the site,” he said.

It will look at any changes that may be needed for the site to serve the community as it grows as well as how the opening of the 32nd Street will impact it.

Town council chose to hold off on a few projects this year, including repaving Northridge Drive and adding a second left-hand turn lane from Milligan Drive to southbound Northridge Drive. Council will also wait to decide on changes to intersections near Dr. Morris Gibson School and the last phase of improvements to the Northridge Drive median near the bridge.

Mayor Bill McAlpine also asked administration to look at including repaving Centre Avenue north of Elizabeth Street.

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