After years of planning and discussion, there isn’t a clear funding source for a water pipeline from Calgary. Okotoks’ proposed 2017 budget is making a possible road to completion clearer, but it could mean taking a costly leap.
Okotoks has asked the Province to cover as much as 90 per cent of the nearly $35 million price tag for the pipeline from the Water For Life program. It’s efforts have come up dry, despite several years of heavy lobbying from town council and administration.
It looks like the Town is ready to abandon plan A.
The Town’s proposed budget include’s the pipeline, listing $16.3 million in provincial funding from the Alberta Municipal Water and Wastewater Partnership. The Town would have to cover the up to half of the pipeline’s price tag. Here’s the rub, the provincial government still needs to give its seal of approval.
If the provincial or federal governments doesn’t come through with funding, the Town only has one option left, to borrow the money. It’s a less than ideal prospect that could end up costing Okotoks millions.
To its credit the Town has repaid millions in debt in recent years, including a proposed $3.1 million debt payment in 2017. It has room to borrow money to pay for a pipeline. Hopefully, this will be a last resort.
The debt can be repaid with developer levies, but it will still be felt. Interest costs will be born by property taxes and it will mean the Town will have less room to borrow for other projects.
The Town needs a pipeline to allow the community to continue to grow and it’ll have to come up with a concrete funding plan soon.
When plan A hasn’t worked, there’s no guarantee on plan B and plan C means plunging into debt, the Town needs to be ready to take the leap if all else fails.
