Brandon City Approves Urgent $10 Million Loan for Wastewater Project

UPDATE: The Brandon City Council has just announced plans to borrow an additional $10 million for the urgent southwest wastewater project, escalating the total borrowing to a staggering $40 million. This critical funding decision was made during a public hearing on October 23, 2023, highlighting the rising costs that have plagued the project.

Director of Finance Troy Tripp confirmed that construction costs are vastly exceeding initial estimates, which necessitated the increased borrowing. “It’s definitely something that we’ve been seeing more of…actual awards and tenders are coming in over what previous estimates were,” Tripp stated, emphasizing the urgent need for the city to secure funds to move forward without delay.

The new loan will allow the city to begin cracking on contracts immediately, sidestepping uncertainties surrounding potential grant funding. The council is committed to addressing the community’s infrastructure needs without further postponements. Mayor Jeff Fawcett echoed this sentiment, stating, “We need to get this project started…we don’t want to delay another season.”

The project, which has already seen $24,035,000 allocated towards its first phase, is now looking at a projected cost of $15 million to $17 million for the second phase, which includes vital upgrades to the 18th Street lift station. However, this leaves the city facing a shortfall of approximately $10 million, now being addressed through the proposed loan.

The council’s decision comes after previous amendments to the initial proposal, which aimed to borrow $30 million back in February. The recent hearing saw only 15 attendees, a stark contrast to earlier discussions, but the urgency of the matter remains clear.

City officials are also exploring additional financial support from the Canadian Housing and Infrastructure Fund (CHIF), which could cover up to $7.2 million of the project costs. Should CHIF funding materialize, it would significantly reduce the anticipated funding gap.

If approved, the full $40 million borrowing will be repaid over a 20-year term at an interest rate of 7.5%, costing the city approximately $3,923,688 annually. This significant financial commitment reflects the council’s determination to enhance local infrastructure and support community growth.

As the council prepares for a second reading of the borrowing proposal, the focus remains on commencing construction as quickly as possible. Residents and stakeholders alike are hopeful that the city can navigate these financial hurdles to bring essential improvements to their community.

Stay tuned for further updates as this urgent situation develops.