From 2000 to 2018, the City of Melfort lost over $3.5 million worth of water due to main breaks (File photo/northeastNOW Staff).

By Aaron Schulze

Melfort Budget 2021

Millions in Melfort’s capital budget depends on government water main funding

Dec 10, 2020 | 10:13 AM

Melfort’s 2021 capital budget will be impacted by the Investing in Canada Infrastructure Program (ICIP) in one way or another.

Two options were brought forth to Melfort City Council during its first public budget meeting on Wednesday, Dec. 9.

If Melfort receives ICIP funding for water main replacements– where the municipal, provincial, and federal split a project three ways– the city would pay a total of around $8 million over five years for a $24 million-plus project to reconstruct 32 streets. The city would spend over $850,000 in 2021.

If ICIP isn’t a possibility in 2021, option two for the city would be to spend over $3 million on water main replacement itself. Areas the city’s money would go to includes Broadway Ave S, McKendry Ave E, Looping Frost Drive to Southgate, Charles Street, Intersection Shadd Drive, and the 600 block of Sask Drive.

Melfort Mayor Glenn George said the two options are nearly the same as the previous two to three years.

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“If we don’t get ICIP we’re in big trouble, but we have to start picking away at it for sure,” George said.

Option two is an alternate plan if the annual ICIP applications don’t succeed. Receiving ICIP would see the city spending over $2 million fewer on water main replacements in 2021. If the ICIP funding isn’t approved by March 31, the city will begin with option two.

George said the difference in receiving ICIP money drastically changes other aspects of the capital budget.

“We’ll work hard to keep [the tax increase] as low as we possibly can without giving up services,” George said. “This year with COVID-19, to keep it down, we might have to reduce service somewhere. I’m hoping not, but you never know.”

Melfort saw a 2.07 per cent tax increase in 2020 and George hopes council can keep it below per cent. Council will have its next capital budget meeting in early January to finalize one of the city’s budgets. Once that’s complete, council and administration will begin work on the 2021 operating budget, which will determine the city’s tax increase.

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aaron.schulze@jpbg.ca

On Twitter: @SchulzePANow