Okotoks will likely not see any money to build a water pipeline from Calgary when the Province announces it budget this week.
In a recent letter to Okotoks town council, Alberta Transportation Minister Wayne Drysdale stated the pipeline is not a provincial priority for funding under the Water for Life Program. In the letter, dated March 16, the minister states the Town’s application will be considered in the future, along with other projects.
“Currently, there is a large waiting list of potential Water for Life projects, totaling some $700 million. Due to current Water for Life Program commitments, we do not anticipate any additional program approvals this year,” wrote Drysdale.
The Town has asked the provincial government for funding from the Water For Life program to help build the pipeline. The program provides funding to cover up to 90 per cent of the cost of water pipeline projects.
Highwood MLA Danielle Smith acknowledged funding will not likely be available this year.
However, it’s not money people are looking for right now, but a commitment the funds will be available when it’s time to build the pipeline. Smith hopes the project will be included on the provincial government’s five-year capital plan.
Once the project has been added to the list, she said the Town and Province can work on interim solutions, such as temporary water licences, that will ensure Okotoks has the water it needs to continue growing until a pipeline is built.
“We can’t do those things on an interim basis until we know that we’re going to get a permanent solution,” she said.
The provincial government only provides $50 million a year for the Water for Life program.
According to Smith, projects that will address water safety issues in communities are currently at the front of the line for funding.
Smith is hoping looking to the federal government for assistance.
She said the federal government has been approached to provide $50 million a year in funds to top up the Water for Life program. The additional funding will allow the Province to work through some of the backlog of water projects, she said.
“We would have a $100 million a year which would allow us over 10 years to clear that backlog and take new projects,” she said. “Then clearly Okotoks would be able to have their project financed within the next five to 10 years.”
Macleod MP John Barlow said the pipeline is a priority for him and he is looking to see if it could be covered under any federal funding programs.
“It is a priority for my riding, not only for Okotoks but potential regional water assistance for the MD of Foothills, perhaps Turner Valley, Black Diamond in the future,” he said.
Barlow said he is looking to see whether the project could be included in the new Building Canada plan. If so, the cost of the project would need to be split evenly between the Town, and the federal and provincial governments.
Drysdale’s letter also mentions the possibility of using a public-private partnership model to build the pipeline.
Barlow said a P3 program could be more affordable for the Town.
“That’s something that would be a debenture over a longer period of time, something you could go to the private sector to design, build, operate… it would be over a longer period of time,” he said.
Despite the challenges securing funding, Okotoks’ mayor remains hopeful the Province will come through.
Mayor Bill Robertson said Okotoks doesn’t need the money today, but it will within the next two years.
“I certainly agree communities with potable water problems should be a priority… We also have a dire need because we’ll be out of water,” he said.
Robertson said the new Building Canada Fund could be a possible source of funds, as could a P3 project that could allow the Town and Province to spread out the cost over 20 years.
“We are certainly going to pursue all avenues to get done what we have to get done,” he said.
While efforts to secure funding continue, the Town of Okotoks and City of Calgary are in the process of negotiating a master servicing agreement to govern the provision of water from the city to Okotoks.
After a speech at a March 20 Okotoks Chamber of Commerce lunch meeting, Calgary Mayor Naheed Nenshi said he doesn’t see any problems getting the agreement finalized.
“We are in negotiations for that agreement now, it shouldn’t be hard, we can negotiate price and things like that, but both councils have agreed philosophically to do it,” he said.
The real challenge, said Nenshi, is securing provincial funding for the project.
“So, now the hard part is actually coming up with the money to get the pipeline built and that is going to require the Province’s assistance,” he said.
While the Province may be facing an economic downturn, he said this is a good time to build infrastructure projects like the water pipeline because interest and the cost of material is lower, and there may be more people looking for work.
Ultimately, Nenshi said it should be possible to fund the pipeline to address Okotoks’ needs and build it in such a way to be able to branch off to serve the Foothills region in the future.
“I think that would be the smart way to go, if I were the Province I would say let’s go ahead and build it, let’s future-proof it and as we solve the regional problem, because we will, then that piece of infrastructure will serve another use,” he said.
