Recent News

June 23, 2019 KLWD News Update

Kemp Lake Water Source Replacement Project

Anticipated Completion Date: July 31, 2019

We are now anticipating completion of the new pump house by the end of July if all goes well. Unfortunately due to previous delays beyond our control, we had to reschedule various contactors who had moved on to other projects.

How having to purchase water from the CRD will affect KLWD.

 The following table comparing water costs was published by Mike Hicks, Regional Director JDFEA (see latest edition of Rural Observer). It details the approximate current rates of water systems in the JDF, Gulf Islands and Saltspring Island.

For Kemp Lake Waterworks, the User Fee is calculated as the average annual toll cost for a home. Kemp Lake Waterworks (before CRD connection) currently has the 4th lowest cost out of 15 water service areas.

 

Service

Total Folios

$ User Fee

$ Parcel Tax

$ Total

1

Port Renfrew Water Service

244

195.50

277.19

472.69

2

CRD Service East Sooke (Copper Mine)

 

500.00

 

500.00

3

Municipality of Sooke

 

500.00

 

500.00

4

Kemp Lake Waterworks District

475

300.00

455.00

755.00

5

Seagirt (East Sooke)

86

500.00

180.00

780.00

6

Magic Lake Estates Water Service (Pender Island)

1,241

302.10

498.22

800.32

7

Highland and Fernwood Water Service (Salt Spring)

343

858.15

174.36

1,032.51

8

Sheringham water works (Shirley)

107

1152.00

 

1,152.00

9

Beddis Water Service ( Salt Spring)

144

639.92

554.98

1.194.90

10

Skana Water Service (Mayne Island)

76

905.00

332.62

1,237.62

11

Lyall Harbour/Boot Cove Water Service (Saturna)

207

624.84

720.90

1,345.74

12

Cedar Lane Water Service (Salt Spring)

37

1,058.11

372.76

1,430.87

13

Sticks Allison Water Service (Galiano)

40

1,321.47

138.49

1,459.96

14

Wilderness Mountain Water Service (East Sooke)

83

892.11

796.95

1,689.06

15

Fulford Water Service (Salt Spring)

108

1,255.89

771.73

2,027.62

 

The projected new water toll rates for Kemp Lake Waterworks are estimated as follows:

CRD current water rate: $2.0739 per cubic meter

CRD current water rate converted: $0.95 per 100 imperial gallons

 

KLWD pumped from lake a total of 22,613,571 imperial gallons or 102,803.3 cu meters in 2018

Cost at CRD rate = $2.0739 x 102,803.3 cu meters = $213,203.76 for 2018

 

The total water the district consumes includes water distributed through customer meters, water used for maintenance of the system (reservoir cleaning, flushing mains, etc.) and leakage. The only means of collecting the costs of the water is tolls on the water distributed through customer meters.

 

KLWD distributed to customers 17,061,265 imperial gallons in 2018

To recover the above CRD cost:

        $213,203.76 / 17,061,265 igal = $0.01249636 per gallon

        Cost per 100 gal = $1.249636 or $1.25

 

Projected future toll cost to ratepayers: the cost of water from CRD ($1.25/100 gallons) plus the cost to operate the KLWD system which is currently $0.95/100 gallons = total of $2.20 per 100 imperial gallons.

 

When the cost of purchasing CRD water is factored in to the overall KLWD cost, the cost for the average home in Kemp Lake Waterworks District moves to be the 7th lowest out of 15 water districts.

 

 

Service

Total Folios

$ User Fee

$ Parcel Tax

$ Total

1

Port Renfrew Water Service

244

195.50

277.19

472.69

2

CRD Service East Sooke (Copper Mine)

 

500.00

 

500.00

3

Municipality of Sooke

 

500.00

 

500.00

4

Seagirt (East Sooke)

86

500.00

180.00

780.00

5

Magic Lake Estates Water Service (Pender Island)

1,241

302.10

498.22

800.32

6

Highland and Fernwood Water Service (Salt Spring)

343

858.15

174.36

1,032.51

7

Kemp Lake Waterworks District

475

695.00

455.00

1,150.00

8

Sheringham water works (Shirley)

107

1152.00

 

1,152.00

9

Beddis Water Service ( Salt Spring)

144

639.92

554.98

1.194.90

10

Skana Water Service (Mayne Island)

76

905.00

332.62

1,237.62

11

Lyall Harbour/Boot Cove Water Service (Saturna)

207

624.84

720.90

1,345.74

12

Cedar Lane Water Service (Salt Spring)

37

1,058.11

372.76

1,430.87

13

Sticks Allison Water Service (Galiano)

40

1,321.47

138.49

1,459.96

14

Wilderness Mountain Water Service (East Sooke)

83

892.11

796.95

1,689.06

15

Fulford Water Service (Salt Spring)

108

1,255.89

771.73

2,027.62

 

Any questions should be directed to Administrator@kemplakewaterworks.bc.ca or phone 250-642-2875. Please note the position of CAO for the district is only part-time, please leave a voice mail if necessary.

 

 

E-Transfer Payment Option 

If using the new E-Transfer Option, please make sure to include the name on the property invoice and either the account number or the address. Without these pieces of information, the payment may not be credited to your account.

 

Tax Rate

This is a repeat of information previously distributed.

All property owners in 2018 saw an additional $305 (per unit) on their tax notices – this is to service the loan required to pay for the Kemp Lake Water Source Replacement Project under Bylaw 194. For 2018 the regular tax was increased to $150 (per unit) in anticipation of the project getting underway at some point in 2018. The outcome of the AAP which closed on June 8th, 2018 determined approval for the project and the project was started immediately. Given that the project was underway and targeted for completion by the end of 2018 it was determined that an additional $305 (per unit) would be required from tax revenue to make payment on the loan. The interest rate to be charged by the bank will not be known until the project is complete and the final cost established (rate of the day on that day), and will be guaranteed for ten years (amortization 25 years). For purposes of calculation the District is using the rate of the day, today up to 5.5% in determining how much money will be needed to service the debt.

Toll Rate

Over the past ten years two key initiatives took place which brought the toll rate to where it is today. In 2008 the District was preparing for the implementation of PS 315, the accounting standard brought into effect by the Public Sector Accounting Board (PSAB). There was a change in the accounting and reporting requirements for tangible capital assets and three major steps for implementing PS 3150: Inventory, Valuation, and Amortization. Before valuation and amortization could be determined, it was necessary to determine the useful lives of the District’s tangible capital assets. In 2009 the District contracted with Suncorp Valuations to conduct an infrastructure evaluation and provide a tangible capital assets inventory report. With that report in hand the District now had an accurate and comprehensive list from which to develop a capital plan for maintenance, repair, and replacement. Concurrently through the District’s association with SIS (Sustainable Infrastructure Society) and involvement with other small water systems through CWSA, and BCWWA, there was general concern that rates were not keeping up. One of the most important (SIS) Best Management Practices is “Establish Sustainable Rates & Charges” – that the rates and charges be set to recover ALL the costs of supplying water now and in the future, including the costs of renewing assets when required, and the costs of new projects.

Challenges to Overcome

Benefits

Customers do not understand the full costs of providing safe water.

Maintain the financial stability of your system by ensuring a sufficient revenue stream.

Water system assets are “out of sight and out of mind” and consequently their maintenance and rehabilitation may be inadequate.

Collect and reserve the funds needed to cover the costs of future asset rehabilitation and repair projects, security upgrades, and compliance with future regulations, among other things.

Rate increases may be resisted by customers and are too often postponed.

Plan ahead for reasonable, gradual rate increases when necessary.

Reserve funds to cover unexpected costs are inadequate.

Deliver fairly priced, high-quality drinking water to customers now and in the future.

Further in 2009/2010 the District acquired the services of AquaVic Water Solutions to complete a rate review. The result: tolls and the renewal reserve fund rates needed to be increased, as mentioned earlier, in anticipation of upcoming needs - primarily infrastructure upgrades and renewals as well as capital planning. And that there would need to be yearly rate increases to avoid future shortfalls.

Looking back over the past ten years – there were no increases in 2008 or 2009:

YEAR

TOLLS per 100 gallons

RRF

2010

$0.50

$10

2011

 

 

2012

$0.55

 

2013

$0.60

 

2014

$0.65

$15

2015

$0.70

$18

2016

$0.75

 

2017

$0.80

 

2018

$0.90

 

2019

$0.95

 

In 2018 the tolls went up by $0.10 instead of the usual $0.05. This due to a marked increase seen the previous year in the cost of materials, utilities and an overall increase in the cost of most expense items.

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As your local water provider, we strive to keep you continually updated on all matters related to your water service. If you do not find the information you need, please contact our office and we will gladly assist you.  Subscribe and receive all published news and notices delivered via email straight to your inbox.