A new water treatment facility in the City of Kimberley could cost “significantly higher” than the previously anticipated budget of 34 million dollars.
This from a recent report by city staff last week, as council is set to adopt a set of bylaws around waterworks and sewer rates.
Chief Financial Officer Jim Hendricks told council at their last meeting the move would change the increase to sewer rates from a five percent boost to eight percent, starting next year.
He says the changes to fees will help them brace for that upcoming expense.
“By shifting that two per cent over from water to sewer, without any additional impact financially to the ratepayer, we will be able to increase revenues in the sewer utility by about $800 thousand dollars over a five year period,” Hendricks says. “It will help us fund future expenses related to that.”
Mayor Don McCormick says its the right move for the city to make with a major project ahead.
“This is going to be, without a doubt, the single biggest infrastructure expenditure the city has had in a very, very long time,” McCormick “Being prudent at this point on how we are collecting reserves I think is a good thing to do. If we have opportunities for adjustments down the road, we can do that.”
The city began work on preparing for the new facility in 2016.
They are hoping to replace the plant around 2020.
– Kimberley Mayor Don McCormick
– Jim Hendricks, Kimberley’s Chief Financial Officer