Serving Southern Jefferson County in the Great State of Montana

WHITEHALL WATER PROJECT: The Simple Facts, Week 2

Myth: The Town of Whitehall could have budgeted for the new water treatment facility.

Here are the facts:

1. The Town of Whitehall has an approximately $293,100.00 annual water budget. This is the ONLY budget that would have been allowed to pay for any items related to water. Currently, those funds pay for equipment, facilities, maintenance, public notices, unexpected repairs (broken water lines), a portion of employee wages, etc.

Budget planning is held each year, and we are hard-pressed to stay within this small budget to simply operate.

There is no room in this budget to plan for multimillion-dollar projects; not enough revenue comes in.

2. Funding for the project is 50% covered in grants, approximately $8.5 million through state and federal grants that don’t need to be repaid. You will see your tax dollars being used for this project. Approximately an additional $4 million has been set up through loans, which the Town of Whitehall will repay over 30-40 years (depending on the loan). The water treatment project also includes repairs to our water lines and storage tank. Without these additional items being addressed, the water for the town will not be sustained for longevity and growth. Our current storage tank has deteriorated to a point that requires replacement.

3. Construction costs have skyrocketed in the last four years at a pace that grants and loans are the only option. We are all experiencing higher costs of living.

Without the grants, the cost of the new water treatment facility placed on taxpayers would have jumped much higher.

 

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