Penticton taxpayers get break on sewage plant upgrade

12/20/2008 Penticton Herald
A $30-million upgrade to Penticton‘s sewage treatment plant has gained a $10.3-million boost from federal gas tax revenues. Pointing to the project‘s green technologies in capturing methane to produce power for the plant and using heat energy for nearby commercial operations and industries, Okanagan-Coquihalla MP Stockwell Day announced the funding allocation Friday. “This has a reducing effect related to greenhouse (gas emissions) and other areas of economic sustainability,” he said. “We‘re just very pleased to be a part of it.” Also on hand at the city‘s waste water treatment plant were Penticton Mayor Dan Ashton, Chief Jonathan Kruger of the Penticton Indian band, Penticton-Okanagan Valley MLA Bill Barisoff and Robert Hobson of Kelowna, president of the Union of B.C. Municipalities.

Ottawa is also contributing $2.48 million in gas tax revenues to the Regional District of Okanagan-Similkameen for 18 projects related to infrastructure, planning, environmental sustainability and other community enhancements. Penticton will receive $592,000 of this funding to retrofit the Penticton Community Centre to improve energy efficiency. Summerland will receive $178,000 for a lakeshore walkway and $94,000 for bus shelters and roadway pullouts. The expansion of the sewage treatment plant also allows for the extension of sewer service to Penticton Indian band lands along the west side of the Okanagan River Channel. Kruger applauded the funding allocation, noting it will play a significant role in the band‘s economic development plans. “When you get into economic development, you need sewer, water – all that infrastructure,” he said. “Every community that I have talked to says in order to be successful, you have to have the infrastructure. That‘s the bottom line.”

Ashton described the funding announcement for the sewer system as a “very exciting moment” for the city. “It will alleviate some of the fears that council had about some of the (sewer rate) increases that they may have had to look at,” he said. Last March, Penticton council approved borrowing the first $15 million for the project, which will be funded through an average $72-per-household increase in sewer rates. However, the $10.3-million grant means the city will likely not have to borrow a further $9.6 million that was approved by council in September. “We know infrastructure improvements are required, and we‘re grateful and extremely excited that the federal government and the province are listening,” Ashton said. Day noted the funding represents part of more than $1 billion in gas tax revenues to be distributed this year. By 2013, that allocation is expected to grow to more than $2 billion a year. “The government of Canada recognizes that stable, reliable infrastructure funding delivered at an accelerated rate will help our economy and improve communities across the country,” he said. Day said although times are tough during the current economic downturn, the economy is cyclical in nature and he fully expects it to rebound in the future. Although the gas tax is federal revenue, the provincial Ministry of Community Development determines which projects are allocated funding, which is then administered by the UBCM. Final design work on the Penticton sewage treatment plant upgrade is underway, with construction due to begin next June and be completed by 2010.