Mayor Bruce Rowe is cautiously optimistic about the future of water in Beiseker after meeting with government officials at the Alberta Urban Municipalities Association’s annual convention, Sept. 28 and 29.
After recently threatening to stop using water from the Kneehill water line, Rowe and other councillors met with Gary Boddez, deputy-minister of transportation; Hector Goudreau, minister of municipal affairs and Jim Ellis; deputy environment minister, to discuss solutions for the cash-strapped Aqua 7 Regional Water Commission.
“There was some good news,” said Rowe.
“Alberta Transportation has said they are prepared to put some money in this. Municipal Affairs said they had a tiny, small amount of money they could step up to the plate with.”
Although neither ministry indicated how much money they would be providing, Rowe said he was able to communicate a deadline for when Beiseker would have to return to their wells.
“(I told them) if something isn’t done by Jan. 1, 2012, I would be turning the tap off,” said Rowe.
Rowe was also encouraged by Alberta Environment’s (AE) response, saying it is possible for the Village to start using the wells again.
Although a number of steps would have to be taken before the Village could use its wells, Rowe said it would cost significantly less than the $200,000 Beiseker pays towards the deficit every year, money that comes out of general revenues.
“It is the difference from what we pay for the water and what we charge our residents,” said Rowe.
“We would have to be up around $8 or $9 per cubic metre (to recuperate the costs) and we are charging $4.18, one of the highest, if not the highest water rates in the province.”
According to Rowe, by the end of 2011, the Village will have spent $1 million subsidizing water since it joined the commission six years ago. As a result, other Village projects have been cancelled or delayed.
“We are up against the wall,” said Rowe.
“We can’t continue to do this.”
Rowe was disappointed the ministerial departments had not communicated with one another about possible solutions for the cash-strapped commission.
According to Rowe, the August 2010 report, released after an investigation into the Commission, suggested a $6.2 million cash injection was needed to pay down the organization’s debenture.
Rowe said the Commission is unlikely to receive that amount.
Whether Beiseker continues with the line or not, Rowe said the Village intends to pay its portion of the interest payment, about $25,000 to $30,000 per year.
“We wouldn’t renege on our contract,” said Rowe. “We support the commission and have a responsibility.”
The decision to shut off the tap isn’t one the Village will make lightly, Rowe added.
“This is not something we want to do,” said Rowe.
“If Beiseker goes offline, it puts the whole project in jeopardy. But we have done it for six years and we just can’t do it anymore.”
