West Kelowna council has endorsed a petition process for the city to determine support to borrow up to $23.5 million for the design, construction and financing of the Rose Valley Water Treatment Plant (RVWTP).
This process establishes the new RVWTP Local Area Service that includes the water service areas of Pritchard, Lakeview (local Rose Valley), Sunnyside and West Kelowna Estates.
Once operational in 2022, the water treatment plant will be one of the most significant infrastructure projects delivered by the city.
“The Rose Valley Water Treatment Plant remains council’s top priority project and the decision of council to proceed with a long-term borrowing recommendation is another positive step forward to opening day in 2022,” said West Kelowna Mayor Gord Milsom.
“Long-term borrowing reduces high short-term payments to users as we continue to look for ways to minimize the hardships some may be experiencing from COVID-19.”
Read More: Extension granted for West Kelowna water treatment plant
Read More: West Kelowna acquires land for water treatment plant
Milsom noted grants totalling $41 million have also been provided to the water treatment plant project by the federal and provincial governments,
“Without their support we would not be where we are today. This plant will serve more than half of our community, and we very much look forward to celebrating with our government partners and our community as we work to provide clean, safe and reliable drinking water in 2022,” he said.
Under the funding proposal, future RVWTP users currently pay $116 per year toward the plant. In 2022, the amount required to repay long-term borrowing will be $150 per year or less. That planned increase of $34 over two years will then stop and no further increases will be required during the 25-year borrowing term.
Further, the $150 will be taken off users’ utility bills and be transferred into a parcel tax, which allows eligible users to defer the tax.
This high-capacity plant will enable the city, as a water service provider, to meet the needs of the growing West Kelowna community without high short-term costs.
The petition will require at least 50 per cent of all RVWTP property owners representing at least 50 per cent of the local area service property value within the 30-day period.
The timing of the 30-day period is anticipated to occur in August/September 2020, subject to approval from the B.C. Ministry of Municipal Affairs and Housing.
RVWTP local area service property owners will receive a legislative package in the mail this summer, which will include the petition against form that property owners would submit to the city should they object to the long-term borrowing.
Alternative options such as short-term borrowing and one lump-sum payment were not endorsed by council, as it would result in much higher short-term costs for all RVWTP users.
For RVWTP local area service property owners who are in favour of long-term borrowing, no action is required.
City staff will also provide details about how the annual $150 fee will be removed from their water utility bill and transferred into a parcel tax in 2022.
Property owners will also be able to pay a one-time lump sum of $2,815 in 2022 if they prefer not to follow the long-term borrowing plan.
This process does not affect Powers Creek Water Treatment Plant users or Westbank First Nation water users.
For more information about the project cost, borrowing and process, including background about the federal and provincial Canada Infrastructure Grant and a GIS map of the RVWTP local area service, please visit the project webpage at westkelownacity.ca/rvwtp.
Future RVWTP users are also encouraged to subscribe to receive e-updates at westkelownacity.ca/subscribe.