The Thompson-Nicola Regional District says more money is needed, likely from higher levels of government, to do upgrades on tiny community water systems.
Director of environmental services Jake Devlin says the regional district can’t put enough money away for future upgrades and maintenance for many systems, because not enough revenue is coming in.
He says the TNRD receives about $1.29 million in revenues to operate its 11 water systems. Ten of those systems have fewer than 500 users.
“Our shortfall is probably between three-quarters of a million and, say, $1.2 million, per year. Essentially we’re tasked as local government to build, operate and maintain these systems, and as a government entity there’s certainly a high level of expectation from the customers that we give them water that meets drinking water guidelines.”
As a result of lack of funding for improvements, four of the community water systems are on water quality advisories (Savona, Walhachin, Evergreen and Loon Lake), while there’s one long-term boil water advisory in place, for Black Pines.
But Devlin says the TNRD also can’t raise rates dramatically to make up for capital shortfalls, saying it would make water unaffordable for users.
“As you have a larger and larger system, the amount you have to charge per customer decreases, because you have the benefit of economy of scale. So the real challenges arrive as the systems get smaller and smaller.”
Devlin says the TNRD went to the provincial government and found that through the Local Government Act, it can’t use other revenue streams to cover the cost of capital improvements to water systems.
The TNRD can, and does, apply for grant funding to cover capital costs, and is successful on occasion – including in July of 2020 when it received close to $5 million for a filtration system for the Pritchard water system, for which early work has now started.
CAO Scott Hildebrand suggests that a policy change at the provincial level might be needed for a permanent funding solution.
“We’re going to need some political pressure if we want anything to change… Ultimately the legislation is the legislation. So we’re going to need this group, or the politicians, to help us with the Ministry of Municipal Affairs.”
Spences Bridge area director Steven Rice says there’s no provincial path for funding regional districts with water systems that have under 500 users.
“The long-term solution is policy. And to have a micro-system policy. Micro-system being under 500. Because we’re certainly not unique; we’re more the rule than the exception in the rural areas. So maybe it’s up to this board to look at that a little bit closer. And as we move forward, look at a micro-system and put it to the province. They obviously do not have a business model to address this issue.”
The TNRD board will likely decide before the end of this year on how to approach the B.C. government about the funding shortfall.
