SEKID rates headed up

by Jon Manchester CASTANET- Apr 20, 2015 / 4:42 pm
After an alternative approval process shot down expensive upgrades to the South East Kelowna Irrigation District water system in 2012, users are being faced with an option that will significantly increase the cost of that service. SEKID said in press release Monday it is moving forward with a $23.7-million water quality improvement project to bring its drinking water up to mandatory provincial water quality standards. The upgrade will supply treated well water for domestic use through a new delivery system, and untreated surface water for agricultural use through the existing distribution network. The district has developed what it feels is "a feasible funding plan that avoids borrowing by constructing the new system in two phases." However, it is not without its costs. A water quality levy of $20 per month will be charged to Phase 1 properties starting July 1. Phase-2 properties will see a monthly charge of $10 starting when Phase 1 construction is complete in 2019. The project will also draw from existing reserve funds, use revenue from land sales, and increased tolls and taxes. Water tolls will continue to increase five per cent per year until both phases are complete. This works out to about $2.30 more per month in 2015. The annual water tax will also continue to increase five per cent per year to the end of 2020, then decrease to two per cent per year until the project is complete. This works out to about $3.80 more for all of 2015. The quarterly water billing cycle effective July 1 for a single-family dwelling in Phase 1 will be $202.95, plus the yearly water tax of $79.20 per acre or parcel. SEKID says it is still actively pursuing other sources of funding, and should government grants become available, they will be used to accelerate the project and reduce rates. “We’ve been investigating ways to provide a safe, clean and reliable water supply that meets provincial standards and Interior Health operating permit conditions, responds to customer demands for clean water and minimizes financial impacts,” says board chair Brian Wright. “Despite the outcome of the 2012 alternative approval process, during which we heard that ratepayers didn’t want to borrow money for water quality improvements, compliance with provincial standards is still required. As we have consistently stated ... doing nothing has never been an option.” Phase 1 includes the higher-density McCulloch corridor, Gallagher’s Canyon and Hall Road areas. It will start in 2017 and is slated for completion in 2019, and includes developing two new wells, treatment facilities and distribution networks. This initial construction will serve as the basic infrastructure for the entire project. Phase 2 covers the less populated rural areas. Construction will begin when Phase 1 is finished, with completion expected in 2033. The planned average rate for a typical SEKID residential user is $74.25 per month.“By comparison,” explains Wright, “average monthly rates in the Okanagan range from a low of about $40 per month to a high of about $130 per month. Given the nature of SEKID’s source and distribution characteristics, the planned rate structure can be considered very reasonable.” All households on the system will receive a newsletter this week, and an open house will be held April 30 from 4 to 7 p.m. at East Kelowna Hall where customers can learn more about the project.