Sewer costs flush out council debate

By Jennifer Smith - Vernon Morning Star - February 29, 2008

Sewer issues continue to raise a stink in Coldstream. Concerns are wafting around about how future sewer projects should be paid for. Some councillors and residents believe the district should borrow funds for projects, while others agree saving now is the best investment, rather than paying interest on borrowed funds later. The discussion arose at council Monday, where resident Gyula Kiss once again raised a stink over sewer financing decisions. The topic was over future plans to replace the old sewer main on Kalamalka Road (west of where the new line was put in) as the population grows. A utility study from 2004 shows that the old portion of the line would likely need to be replaced by 2012, or when 1,000 additional connections are made. While some of the funds for such a project could come from development cost charges, the remainder would need to be sought elsewhere. Common ground could not be found on how to finance the project. “It’s a matter of philosophy,” said Catherine Lord, director of financial administration. “You either save up or you borrow.” The argument Kiss makes is that borrowing would ensure everyone pays a fair share, whereas saving now would force current sewer users to pay for the bulk of the project. But, says Lord: “They (future users) will be paying for more in the future.”

Coun. Bill Firman agrees with Kiss, that current users shouldn’t be footing the bill. “I don’t see the justification in sewer users paying to extend infrastructure in the community or to pay out latecomers,” he said, referring to the Coldstream Meadows sewer extension latecomer buyout. That buyout cost the district $250,000 but saved those hooking up from a $10,000 fee, plus the district got sewer extended from Aberdeen Road to Mackie Drive. The problem is that very few residents have hooked up. “What we need is a sewer plan and not to use the sewer users, as Mr. Kiss said, as bankers,” said Firman. Coun. Jim Garlick suggests a future planning session to sort these decisions out. He also suggests that where sewer extensions are desired that from now on all the necessary studies are done, grants are applied for and the residents in the area are able to vote on it. “Then it would be up to the people on DeJong Drive or wherever,” said Garlick. “That’s what they do in places like Kelowna. That’s how they extend their sewer.”