The Town of Hay River will be receiving federal funding to cover half the cost of a feasibility study on the potential construction of a replacement water treatment plant and identification of other water treatment options.
The federal government will provide $225,000 for the project under the Investing in Canada Infrastructure Plan.
Another $225,000 will come from the town.
The federal funding was announced on May 6.
During the May 11 online meeting of council, Glenn Smith, the town’s senior administrative officer, said the town was happy to receive the support.
Smith noted that the feasibility study is on the town’s capital plan to start this year.
Mayor Kandis Jameson asked how federal funding for just 50 per cent would affect the study.
The town had been seeking 75 per cent federal support.
Smith said town administration is looking into that question, noting that the project had a couple of elements when submitted.
“One was the feasibility study and potential for preliminary designs,” he said. “So we’re going to look at that again.”
Smith added the town is looking at a couple of options for finding additional funding and discussing the matter with its engineer.
“And then also considering if we need to play with our budget,” he said. “So that will be something we will bring forward to council through any capital updates that are coming later this month, actually.”
The future of the existing water treatment plant was called into question in October when a report from the Department of Municipal and Community Affairs (MACA) recommended that the facility be replaced in the next five years.
MACA estimated the cost of a new plant at about $15 million.
The recommendation followed an inspection of the existing plant last summer by the department.
During a council meeting in October, a MACA official outlined a long list of “limitations” with the current facility, including wear and tear, corrosion and cracks in walls, unused piping and equipment, some exposed asbestos on a pipe, and the fact that the plant didn’t have Internet connection or a functioning phone line.
The existing plant, which is about 40 years old, was also built under different health regulations that have been tightened up over the past several decades.