During a meeting held Thursday, Jan. 21 in Kamloops, Thompson-Nicola Regional District board of directors approved an additional $40,000 in Federal Gas Tax - Community Works Funds to be allocated to Electoral Area “B” (Thompson Headwaters).
The money will be used to fund additional project costs for the Blue River Community Water System upgrade project.
According to a staff report to the board, the Blue River water system upgrade was constructed in 2013 and 2014.
The estimated $1.2 million cost was funded by a Building Canada Fund grant of $777,000, with the balance to be funded from a combination of capital reserves, surplus and $50,000 of Federal Gas Tax from Area B (Thompson Headwaters).
However, the initial design for the project was rejected by Ministry of Transportation and Infrastructure on the basis that the ministry would not allow the water main to be constructed within the road prism.
The project had to be re-designed at an additional cost. This in turn resulted in other delays and more costs.
An additional $70,000 was provided from Federal Gas Tax funds from Area L (Grasslands). However, a shortfall still remained.
The $40,000 approved by the board from Area B Federal Gas Tax funds for Area B is expected to reduce the amount that those connected to the Blue River water system will have to make up directly through future user fees.