MAPLETON – An update on future water and wastewater upgrades forecasts a long costly road ahead for the township as it attempts to accommodate future growth.
Presenting updated delivery strategies, cost estimates, and rate structures for the township's water and wastewater upgrades at a Mapleton council meeting Tuesday evening, members of the project's development lead, financial advisor and general contractor Graham Capital said the project is currently anticipated to have a total capital cost of $41,327,576.
This would cover upgrades to the Moorefield Pumphouse and Standpipe, Drayton Sewage Pumping Station and would increase the capacity of the township's wastewater treatment plant from 900m3/day to 1,300m3/day.
Constructing and designing the expanded water and wastewater systems was previously estimated to cost $25 million, not including other project-related costs like professional advisory services, site investigations, financing costs and operations and maintenance costs.
"This project is a crucial step towards our planned growth," said CAO Manny Baron, in the project report. "It will enable us to initiate the detailed design process and draft agreements that will move us forward. These agreements will play a pivotal role in upgrading our services and ensuring our success."
Graham Capital said the presentation is the "most conservative case on the financing side" and there is still room to change in the project design including design opportunities where they think they can save money they haven't accounted for yet.
Staff proposes funding the project using a combination of grants, increasing development charges, building up reserve funds and maximizing the use of investment-grade debt to minimize equity requirements.
Mapleton has secured five million in funding for the project through the Government of Canada.
Annual tax rate increases between three and 5.5 per cent are proposed over the next 12 years which staff said would cover the annual capital payments of $2.5 million spread over 40 years.
Commenting on how the project will take place over several years, Mayor Gregg Davidson asked if there has been any consideration for upgrading the system to 1,800 m3/day in the future as is recommended.
Graham Capital's director of development Sam Johnson said there's another $50 million worth of work that the township would want to deliver that will need another separate analysis. Available grant funding and the likely increased rate base would also need to be considered.
"You would be looking at borrowing more money at a future date," said Johnson. "What the impact of that looks like would depend on what grants are available, what the rating is at the time- those other inputs."
The project's should be constructed no later than 2033 with Grapham Capital staff saying the "overarching objective" is to deliver the projects between 2025 and 2027.
A report on the Early Works Agreement with Graham Capital will return to council at a subsequent meeting for approval.
Isabel Buckmaster is the Local Journalism Initiative reporter for GuelphToday. LJI is a federally-funded program.
