The City of Morden has again hit a major roadblock in moving forward with its wastewater treatment project.
Spiralling costs and funding shortfalls have the city taking another look at its options while also continuing to have further discussions with both provincial and federal government partners.
Following a news release last Friday, Mayor Nancy Penner said everyone recognizes the urgency of finding a solution, because further development in Morden otherwise is brought to a halt.
“The province knows where we are at in terms of development … it’s not new news to them … they know full well we are at capacity,” she said. “Funding is the critical piece in the puzzle that they are fully aware of too. Funding is the gap … our primary barrier to progress is funding … right now, taxation is not the preferred way that the city wants to go.”
The city thought it had found the answer last May when evaluations for upgrading the wastewater treatment system determined a lagoon-based moving bed biofilm reactor (MBBR) treatment system was the recommended option based on a cost estimate of $70 million.
Over the summer and into late fall of 2023, an engineering firm continued design work on the project, but it came with preliminary design costs ranging from $88 million to $108 million, significantly exceeding the original estimate of $70 million.
With available federal and provincial grant funding totalling $37 million and the city’s borrowing limit set at $38 million (which would be passed on through increased taxation and utility rate hikes), the city was looking at a shortfall between $13 million and $33 million, and it is a cost Morden cannot incur without further increased taxation.
The city’s news release stated they have thoroughly examined all options—from rebuilding onsite to constructing offsite—and have renewed discussions with partners and stakeholders.
“The financial implications of these options are a significant concern for both council and our administration, as we strive to minimize the financial burden on our business community and residents,” the release noted.
“The primary barrier to progress is funding. Additionally, council has recently undertaken further feasibility studies to explore other potential solutions and funding strategies. These studies are essential to ensure that we make the most informed and fiscally responsible decisions for our community’s future.”
Penner said the ongoing saga of wastewater treatment continues to be frustrating for everyone.
“We have been working really hard on behalf of the community, and it’s not like we are sitting still on this,” she said. “We move forward; we take one step forward and it seems like we take two steps back.
“Right now, our biggest obstacle and hurdle that we have to get over is the cost, and we have to be very aware of that impact it is going to have on our residents and the community at large,” she continued. “As we move forward, we are going to have renewed discussions with both our partners and stakeholders, and the province being one … federally and provincially, we need to work on the financial end of it.
“Also, design is another issue of what we’re looking at in terms of the type of lagoon system … that does impact cost,” she added.
The cost has also been a challenge for the City of Winkler, noted Penner, as it also had to go back to the drawing board as a result of sticker shock.
“I don’t know that that was ever a lost opportunity because we both applied … we both applied with independent projects,” she said. “Both projects took 180 degree turns because both our project and Winkler’s were blown out of the park financially right off the bat.
“Back in May of last year, we thought we had a solution, and then when it went to design, it came back way over budget … we’re again back at the drawing board,” said Penner. “Hopefully, we can find a way out of that without putting the burden on the taxpayer.
“We’re trying to work with provincial counterparts, and if we have to go back federally to look at some funding opportunities, we may have to look at that, but right now we’re trying to work with stakeholders provincially.”
