The cost of twinning the Riverview syphon has jumped nearly 38 per cent, forcing the town to seek approval for another $1.519 million in debenture borrowing for the project.

Last night, town council gave first reading to borrowing the additional funds. The entire $7.1 million cost of the project will be recovered from off-site levy charged to developers.

Council had previously approved borrowing $5.151 million for the project.

Another $300,000 will be taken from the town's capital reserve to install maintenance infrastructure to the existing syphon.

Additionally, it will cost $100,000 to flush the existing syphon. Funding for that will come from the wastewater utilities operating budget reserve.

Indications are, the town will likely be borrowing the funds at an interest rate of 5.13 per cent over a 20-year period. The town expects to be paying $122,400 annually for the debt, should it be approved.

Alvin Allim, the town's director of financial and information technology services, says even with the borrowing, the town remains in sound financial shape. 

The Town of Cochrane has a self-imposed debt limit of $100,497,603. Should this additional debt be approved, the town will still be able to borrow another $47,289,521 for capital projects before exhausting the limit.

Residents concerned over the expenditure have the right to petition town council.  Second and third reading of the borrowing bylaw is scheduled for July 24. Council will be arranging a special meeting to address the matter.

The Hwy. 22 to Riverview Syphon project includes the twinning of the existing syphon to provide additional capacity to accommodate future growth and reduce operational concerns of the existing syphon. 

The existing syphon conveys wastewater from communities north and southeast of Hwy. 1A and Hwy.22. It is only flowing at 30 per cent of its designed capacity, possibly due to a blockage.

In 2012, the twinning was originally proposed to be completed around 2028 but continued rapid growth has necessitated it to be moved up.

Last night, council also approved the purchase of $500,000 worth of material by early July for the project.

Lately, the town has been missing the mark on the estimated costs of its capital projects. Recently, the cost of the Mitford irrigation capital project was $48,8000 higher than anticipated. In that situation, council opted to use money originally set aside to add lights to the Mitford Park diamonds. The lighting project also came in at a cost much higher than anticipated.