Phase fast-track for Wheatland Regional Water project

Sharon McLeay
Times Contributor

 

Those concerned about how Wheatland County will pay its share of the Wheatland Regional Water Partnership’s regional water project need not worry: County finance advisors have a plan.
“By predicting the future cash flow required to fund the project, it will allow the finance department to strategically align investment maturity with funding requirements to the corporation,” said Brian Henderson, general manager of corporate and financial services.
The borrowed loan amount will have the interest covered through provincial and federal grants. The interest money generated by investing money set aside for the project will go to any incremental interest revenue variations. A complete breakdown of the financial details can be seen attached to the Dec. 6 agenda.
An update from Wheatland Regional Corporation general manager Baha Hasasneh on Dec. 6 gave Wheatland County council good news about project costs: approximately $7 million was saved on the capital budget estimates. Contract bids came in much lower than anticipated. The majority of costs for the project fall under consulting, engineering and contractual costs, which includes the labour and equipment.
As of November 2016, only $189,359.42 was spent in the operations budget versus the estimated $471,285.22 for 2016.
“In the operation budget last year, we did not spend much as we haven’t started on the operating plant in Standard yet,” said Hasasneh.
Title transfers are currently being done for the Standard treatment plant and until the transfer is complete, the Village of Standard has agreed to operate and maintain the plant. He said the Standard plant would be taken over by the corporation by September 2017, once the Gleichen pipeline is connected to the plant.
The financial capital and operating summary, as well as work completion summaries, can be seen under the Wheatland County agenda attachments for Dec. 6.
Hasasneh said time is short to complete the regional water project under the federal funding conditions, so engineers are hoping to fast-track phases one and two to complete work on time. Their intention is to lay the Gleichen and Rockyford pipelines concurrently. They are hoping to have the Rockyford line done by March 2017.
In order to accomplish their goals, the corporation asked whether Wheatland County could advance $570,000 of their phase one grant money and help the partners with a grant or financing until money is released to the project from the federal government.
The federal funding is approved, but the cash will not be awarded until closer to project completion date. There are also some upgrades needed for the Gleichen pump distribution that are not covered under the Water for Life grant.
Hasasneh said project surveys indicate that 80 per cent of rural residents would be interested in connecting to the line or having access to filling stations, where they could access bulk water, along the pipeline. Details for filling stations and costs of water taken from them are being discussed.
Hasasneh said it would be prudent to have filling stations in place, so the corporation could meet the needs of clients in the future.
Wheatland County staff was asked to work out the details of financing for the corporation and bring back a report on Jan. 10 for council’s decision.