by Marianne Curtis
Towards the end of January, residents in Grunthal will have an opportunity to speak out on a $6.7 million borrowing bylaw that would allow for the construction of a $6.7 million water treatment plant and lagoon expansion project.
On January 24, a public hearing meeting is taking place at the Grunthal Lions Club in Grunthal to discuss the proposed replacement, expansion project and improvement of the Grunthal Utility System within the community.
The total estimated cost of the project is $6,700,000.00 according to estimates prepared by the Municipal Engineering Supervisor. The project consists of several components including water treatment plant electrical and pumps at $300,000, water distribution system improvements at $500,000, lagoon expansion at $3.5 million, water treatment plant reservoir expansion for $1.2 million and aeration system for $600,000. The remainder is slated for engineering and design and contingencies.
For the purpose of this project the municipality intends to borrow $6,7 million over twenty years at an estimated interest rate of 8% per annum resulting in an annual debt servicing payment of $682,409.80.
According to council, the municipality has committed to offset any debt costs in excess of 6 mils from the Gasoline Tax Allocation Reserve Fund to minimize the burden on ratepayers. The mill rate required to service the debt to be created by this project is 15.64 mills. A maximum rate of 6.00 mills would be levied against property within the community resulting to an increase of $540.00 per year (for 20 years) on a house with a current market value of $200,000.00.
The RM of Hanover anticipates that there will be provincial and federal money available to help offset costs as the project proceeds.
Taxpayers wishing to object to the local improvement plan must file a notice of objection, by mail or in person to the RM of Hanover no later than January 24 or at the public hearing.