qathet Regional District (qRD) directors have referred a motion regarding repayment of debt for upgrades to the Lund water system to a future finance committee meeting.
At the September 4 finance committee meeting, directors were presented with a recommendation that the committee recommend that the board support and institute repayment of the debt incurred to upgrade the Lund water system on the basis of property tax value.
Electoral Area B director Mark Gisborne asked if this matter should show up at a closed session of the committee first because the Lund water system is not a service the regional district currently has.
Electoral Area A director Jason Lennox expressed similar concerns about the matter showing up on a public agenda.
“Quite honestly, there’s a bunch of assumptions in the [staff] report,” said Lennox. “My understanding is there is a lack of communication. We have the receiver here and I would like to hear from her. The simple fact is there are meetings with [ministry of] municipal affairs. Engineering reports have been submitted.
“The information in this report under debt recovery is going direct to the media without our advisory committee or receiver having a chance to view this work. We have a report here that says this is what it is going to cost you, these are your options, and the receiver is not involved. I’m a little bit stunned with this coming before us.”
City of Powell River director Cindy Elliott said the report seemed to be expressing irritation and that she would like reports that stick to the facts.
“I can add up the facts and decide for myself if I want to be irritated at the ministry,” said Elliott.
In terms of the debit, Elliott said she was in favour of cost recovery based on the cost of the service and allocated fairly among the users, based on the values of property from BC Assessment.
Manager of financial services Linda Greenan said ultimately the regional district will have to have the borrowing approved by the users of that service.
Electoral Area E director and finance committee chair Andrew Fall asked if the board was to approve to pay for the project going by assessment, is that more progressive and fair than other options outlined?
Greenan said she considered going by property taxation a more progressive tax.
City director George Doubt said he didn’t believe it is a foregone conclusion that the Lund water system will become a regional district service. He said people just want a good, potable water system they can trust.
Lennox made a motion to refer the Lund water system debt recovery options to the October 2 finance committee meeting, which carried unanimously.
The staff report indicated that the Lund water system is in need of substantial infrastructure upgrades. The system has not had a quorum of trustees since December 2020, so in 2022, the provincial ministry of municipal affairs appointed a receiver, the report stated.
A grant application was made in 2019 to fully fund the project, which was not successful. qRD submitted a subsequent application, for a total project cost estimated at $24 million. The ministry suggested that upgrades be approached in phases.
In January 2024, the ministry informed qRD that a grant had been conditionally approved to a maximum contribution of $11 million and the grant was awarded. The staff report stated that ratepayers within Lund water system service area would be responsible for 27 per cent of eligible costs and 100 per cent of ineligible costs. The total local portion would come to $7.1 million, to be shared among 124 lots.
Join the Peak's email list for the top headlines right in your inbox Monday to Friday.
