Steinbach city council has approved a resolution to apply for more than $66 million in federal funding to help pay for major wastewater infrastructure upgrades.
The application will be submitted through the direct delivery stream of the Canada Housing Infrastructure Fund (CHIF), a federal program designed to support municipal infrastructure related to housing growth.
The total estimated cost of the project is $132,475,000. Council’s resolution commits the city to funding the remaining half, approximately $65.4 million.
Independent project selected over Co-op model
Before council voted, Deputy Mayor Michael Zwaagstra asked City Manager Troy Warkentin to explain how the city arrived at its current proposal.
Warkentin told council that two options had been considered: joining the Red-Seine-Rat Wastewater Cooperative (RSR), or proceeding with a standalone city project. After evaluating both, administration recommended the city move forward independently.
“Whether the city would choose to go with the RSR as an additional member, or whether the city would proceed on its own, both options were extremely costly,” said Warkentin. “But the RSR Co-op option was projected to be somewhere between the neighbourhood of 25 to 30 per cent greater in cost.”
He also noted that joining the Co-op would have required Steinbach to give up ownership of some of its current wastewater treatment land, which was not seen as ideal by administration or council.
Three-part project includes new facility, upgrades
Warkentin said the proposed project includes three major components.
The largest is a new wastewater treatment facility to replace the city's current lagoon, which has been in use for about 30 years and was last expanded in 2010. The estimated cost of that portion is approximately $94 million.
The second part of the project involves upgrading the city’s primary lift station on Park Road West and installing a second wastewater force main. That portion is expected to cost around $8 million.
Finally, the city plans to construct a new lift station at Park Road West and Twin Creek Road, along with a 1.5-kilometre gravity sewer main. That portion of the project is budgeted at about $30 million.
Further application underway for joint federal-provincial stream
In addition to the CHIF direct delivery stream application, Warkentin said city staff are preparing a second submission for a joint provincial-federal stream that opened more recently.
“Because of the provincial funding component, the city hopes to qualify for some additional funding and therefore reduce the obligation to fund... through a debt issue,” he said.
Councillors emphasize proactive planning
Zwaagstra made the motion to approve the resolution, which was seconded by Councillor Jac Siemens.
“This is information that I think is important to be out there in the public record,” said Zwaagstra. “It's important that the public know what that money is going towards and to be aware that council and staff have done our due diligence.”
Siemens stressed the importance of applying now, rather than waiting.
“We know that we need this project in the next seven to eight years,” said Siemens. “We don’t want to be like other communities in Manitoba who are being held back from growth… because their lagoon is inadequate.”
Mayor Earl Funk also voiced support. “We want our city to continue to grow, to be vibrant,” he said. Funk also expressed appreciation for the work City staff have put into these plans, gathering information and working on every aspect of the significant project.
Following the meeting, Zwaagstra said he sees this decision as part of council’s responsibility to plan for future growth.
“I was actually on council when we did the last expansion of the lagoon, which was in 2009,” he said. “That was a $9 million project, which seemed very foreboding at that time.”
Zwaagstra added that planning for major infrastructure takes years of background work.
“Our city continues to grow and we need to plan ahead,” he said.