Ten million dollars.
That’s how much the Town of Ladysmith is taking steps to borrow to ensure adequate funding is available to construct the third phase of the town’s Waste Water Treatment Plant.
This phase of the upgrade will ensure that Ladysmith continues to meet all the provincial, federal and international regulations with respect to releasing effluent into the environment, according to the staff report received by council.
“This phase of the project will singularly be the most labour-intensive and highest-dollar-value project the town has undertaken to date,” stated staff.
The upgrade to the Waste Water Treatment Plant is estimated to cost between $16.2 million and $16.9 million. To pay for the project, the town has received a gas tax grant of $5.2 million. Another grant and borrowing application has been submitted, and the town is waiting for a decision.
Earlier this spring, the sewer parcel tax was increased by $115 to partially fund the costs associated with this borrowing.
There are a number of steps a municipality must go through to borrow money, as required by legislation.
Council took the first step May 22 by giving the first three readings to the Waste Water Treatment Plant Phase 3 Borrowing Bylaw.
After the first three readings, the bylaw is sent to the provincial government to receive Inspector’s Approval. Once the inspector reviews the bylaw, it is returned to the town to obtain electoral approval. If borrowing is not commenced, this project cannot go ahead, noted the staff report.