A Local Improvement Plan for a supplementary water supply system for Steinbach is now before the Municipal Board.

Steinbach Mayor Chris Goertzen says a secondary water supply is a really important project for the future growth of the city. The project includes new water supply wells, raw water storage, treatment, iron removal, treated water storage and pumping and monitoring system infrastructure.

The estimated cost of the project is $11 million. Goertzen says the Local Improvement Plan calls for the city to borrow $5,375,000 for this project. The borrowing is to be repaid over a five-year period. The remaining costs are to be funded by grants from the federal and provincial governments.

For taxpayers owning property within the City's Water Local Improvement District, this Plan will generate an annual property tax amount of $126.79 for a residential property valued at $200,000.

"Council's goal is obviously to have this not reflect in anyone's tax bill," notes Goertzen. "Rather than adding to our debt we actually have paid off some debt and this will replace that debt."

According to the Mayor, some government funding has been confirmed.

"We will wait to hear from the government to see if there is any further dollars that are imminent before we proceed," he says.

Goertzen says if no additional dollars are committed from the upper levels of government, the city would have to find this money elsewhere, either through borrowing or reserves.

Councillor Michael Zwaagstra spoke in favour of the project, considering it an important project as basic infrastructure. He suggests the city make sure this does not result in a tax increase.

City Council has given first and second reading to the Local Improvement Plan. It has now been sent to the Municipal Board for ratification.

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