County looks to municipal shares for Gleichen plant

Justin Seward
Times Reporter

 

Wheatland County Council had a long discussion at the Nov. 3 regular council meeting about how to move forward with funding for the new scoped water project pipeline between Standard and Gleichen through municipal shares.
Councilors accepted the Memorandum of Understanding in relation to the municipal sharing agreement with Standard to borrow $20 million to complete phase one of the water project.
The scope change included $2 million going to the municipality from the county, and $ 9 million to the pipeline for a total of $11 million to change the scope which originally intended to go from Standard to Rockyford.
“The corporation made a decision that Gleichen uses the water first so that change of scope had to happen with the province,” said councilor Rex Harwood. “What happen is we got funding from the province. The province said ‘here’s your money, do your upgrades, put your pipeline to Rockyford. But then they went ‘uh oh, this isn’t what we want.’ We need this to go to Gleichen first.”
Harwood, who was not present when the decision was made, was uncertain if it was a mistake on the application or a decision that was made after. However, he added, after approaching the province, the county was told a change in scope was needed to include Gleichen in the work that will commence in coming phases.
He mentioned there will be a municipal development phase where they will be required to provide 10 per cent. He also added that the municipal shares are currently between $1.8 and $2.2 million.
“The province will not fund a corporation,” said Harwood. “That’s why it has to go through a municipality. The province is funding it, but we want the municipal shares to be paid through the county. Hussar and Standard could not afford that portion. Gleichen is obviously a hamlet the county controls, we would have to pay that regardless.”
Harwood said one plant in Gleichen is roughly between $5-6 million and the county could get all of their water with their municipal shares for the same price range.
Wheatland County Reeve Glenn Koester put a motion on the floor that the county will forfeit $750,000 to the Wheatland Regional Water to facilitate the costs of the Standard water treatment plant. The motion was passed.
Construction is expected to finish on time next spring.