Sewer rates are likely going up for Kimberley residents to prepare for a new wastewater treatment plant.
The City is hoping to secure grants for the projected $34 million facility.
Chief Financial Officer Jim Hendricks expects taxpayers will have to help cover almost $5.8 million, so long as the City is successful with grant applications.
“Its really all going to depend on how successful we are with the grant funding,” Hendricks says. “We’re hoping for 83 percent currently. That remains to be seen, its not confirmed yet. If we do get that 83 percent, we will have enough at that time to fund the debt associated with the balance.”
Hendricks says a five percent annual rate increase for taxpayers is expected.
“The city is going to have to fund a portion, which we are going to have to borrow for. This is going to result in debt payments that we are estimating at around $350,000,” Hendricks says. “The reason for bumping the sewer rates up by 5 percent a year is just to make sure we have enough by the time that debt comes online to fund the associated debt payments and then the increases will drop back down.”
The city began work on the project last year to accommodate Kimberley’s expanding population.
Staff received $2.1 million from the Federal Government for an engineering study.
They are hoping to replace the plant around 2020.
– Kimberley’s Chief Financial Officer, Jim Hendricks