PENHOLD - The town is moving forward with a multi-million dollar infrastructure project to serve its growing community into the future.
Penhold will have a new $3.3 million water reservoir in the near future. The town's portion is expected to be $850,000 for the project. Council recently passed first reading of a bylaw to borrow the funds for the new project.
"The reservoir is going to provide us with clear water. It's going to triple our water capacity and it will also give us more pressure," said Penhold mayor Dennis Cooper. "It will give the other wells a chance to recover and rest while we use the other reservoir."
The new reservoir will be built in the north end of town in the new Oxford Landing subdivision and will benefit the town greatly, Cooper noted.
"We have two wells now and one reservoir. We're adding one more reservoir and one more well," he said. "We'll have a new water source."
Cooper also pointed out the need for a new water reservoir.
"A number of months ago we were water rationing. We asked (residents) to do odd and even (water usage) and right after the fire we were short of water also," explained Cooper. "We recognized the need to have more water available. We knew we had water for approximately 3,000 to 3,500 people," he added, noting the town's growth and upcoming annexation were contributing factors. "We had to start work on getting a larger reservoir and another source of water."
The town will request the $850,000 in funds from Alberta Finance Corporation, said Cooper.
"We're getting money from the federal government and we're getting money from the provincial government," he said. "We are using a third from (each level of government) and we have to put in (Penhold's share). We have some money set aside now and the $850,000 is the maximum we would need. If the project comes in lower with the bids we won't borrow the whole $850,000."
He said the town's portion towards the project will be financed over a period of 15 years.
"With the present water rates we should be able to make payments on that debenture," said Cooper.
The project is expected to be out for bid later this spring with construction possibly starting this summer. It will take about 14 months to complete.
A public meeting will be held on March 27 at the multiplex.
Mayor Dennis Cooper
"A number of months ago we were water rationing. We recognized the need to have more water available."
