Recent News

April 11, 2019 KLWD News Update

Kemp Lake Water Source Replacement Project
At last, we have all the permits in place for the new pump house. Work has begun on preparing the site on the north side of West Coast Road. As you drive by, you can see where rock has been blasted and removed beside the road. If all goes well, we anticipate completion by the end of June.
 
If you have questions, please attend the upcoming Annual General Meeting of the water district on Wed, Apr 24, 2019 at 7:30 p.m. at Otter Point Fire Hall, 3727 Otter Point Road.
 
If unable to attend the AGM then questions should be directed to Administrator@kemplakewaterworks.bc.ca or phone the office 250-642-2875. The office is not staffed full time, so please leave a voice mail if no answer and we will return your call.
 
Please, do not call and bother the project contractor. He is not permitted to answer questions regarding the waterworks district and its activities anyway.
 

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

 

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.

Once the Water Source Replacement Project is complete, the District will be purchasing (at retail rate) water from CRD Water. The rate is unknown at this time, however a look at the various different rates charged by CRD shows an average rate of approximately $1.60 per 100 gallons. This from information supplied on the CRD Water website. This cost will be added together with the KLWD tolls and this is the amount ratepayers will be charged for their water usage.

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