Cariboo Regional District

Building Communities Together

2008 Business Plan

108 Mile Water (1884)

Mitch J. Minchau Manager of Environmental Services

Working in partnership with communities, large and small, to make the Cariboo Chilcotin a socially, economically and environmentally desirable region to live, work and play.

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Department/Function Services

 

The 108 Mile Water function was established in 1988 and approximately 1,400 land parcels are taxed.  Currently, 1038 developed land parcels are connected to the water system and charged annual user fees. The system is comprised of two wells, a well house, associated booster pumps, distribution piping, fire hydrants and two reservoirs. In addition to meeting domestic/commercial needs, the system provides an adequate quantity of water to aid community fire protection.

 

The water quantity and quality is tested on a regular basis and adjustments to the system are made as required.  Regular inspection and maintenance to the system components is undertaken to ensure continuous operations.  As well, new connections are provided to residents, as requested.

 

Taxation is collected by way of a parcel tax and a variable rate user fee.  Function authority is provided by the 108 Mile Water Local Service Area Bylaw No. 2436.

 

As Electoral Area “G” is the only stakeholder, and the Local Government Act requires more than one vote, the entire Board is responsible for the governance of this service.

 

Business Plan Goals, Objectives & Strategies 

 

2008 Goals

 

1.         Goal:  Ensure protection of water supply.

Rationale:  Protecting the water supply ensures healthy water for resident use. The draft well head protection plan identified that a higher level of security should be provided at the well heads.

Strategy:  Construct secure kiosks on top of well heads.

2.         Goal:  Lower level of manganese in Sepa well #1.

Rationale:  Higher manganese levels reduce flows in water mains and cause additional staining of clothes.

Strategy:  Clean well screening and raise pump level.

 

2009 Goal

 

1.         Goal:  Replace the Kylo water reservoir.

      Rationale:  The current wood stave tank is approximately 30 years old and will need to be replaced in order to ensure the long-term integrity of the water system. 

      Strategy:  Funds are currently being contributed to capital reserves and by 2009 $610,000 will have accumulated. The construction cost of a new reservoir is estimated at $700,000.  The Community Works Fund has been identified as a source of funding for this project, which would negate the use of reserve funds.  Should the Canada/BC Infrastructure Program or other grant programs be available at or near the time of replacement, the appropriate application will be made.

 

Overall Financial Impact

 

No increase in requisition is required for 2008.

 

The capital reserves at the end of 2006 will be approximately $424,441. At this time, the current user fee of $220 and parcel tax of approximately $135 meet the service needs. The system has numerous debt issues that currently amount to a yearly debt payment of $148,019. The debts expire at various times ranging from 2010 to 2018. Capital reserves are being contributed from the function on an annual basis. The Community Works Fund may be a funding source to reduce user costs, associated with new potential Interior Health requirements.

 

The Public Sector Accounting Board requires local governments to report and record tangible capital assets and amortize these assets over their useful life.  In order to provide for future replacement of tangible capital assets, the amortized amount will be allocated annually to a capital reserve fund.  This amortization will be an expense to the function budget.

 

The water system is comprised of PVC piping along with associated metal valves, hydrants, wells, pumps and reservoirs.  The approximate life expectancy for a water system comprised of PVC piping is 100 years.  The majority of system components were constructed in 1980.  Based on a remaining 73 year life expectancy, the cost to replace the system in 2080, accounting for inflation, would be approximately $18.4 million.  In order to ensure that sufficient future funds are available to replace the system components as required, an annual capital reserve contribution of $80,000 should occur.  The budget proposes increasing the capital reserve amount over the next few years to coincide with the reduction in debt payments so as to limit the financial burden to residents. In 2015 a parcel tax of $147 would have to be instituted, which would be an increase of $12 from the current $135 level.

 

Significant Issues & Trends

 

A well head protection plan is underway, as directed by the Board, utilizing Community Works Funds.  The consultants, ND Lea and Kala Groundwater, previously anticipated completion of the plan by December 31, 2006. Completion of the plan has not occurred and is now anticipated by December 31, 2007.

 

Interior Health has indicated that chlorination of groundwater systems may be required in the future.  The requirement to provide chlorination and possible pretreatment cannot be determined until the well head protection plan is completed and the Ministry of Health has made a final assessment on the need to chlorinate the water system.  Funds for these capital improvements could be contributed from existing reserves or from the Community Works Fund.  Significant costs would occur to treat the water to remove manganese and iron so that the water can be effectively chlorinated.  A treatment plant and associated staffing would be required.

 

The Public Sector Accounting Board now requires local governments to report and record tangible capital assets and amortize these assets over their useful life.

 

Measuring Previous Years’ Performance

 

There were no significant goals established for 2007 and issues from 2006 regarding short and long term plans to address new permit requirements, as well as operational and capital funding requirements for the function cannot be completed until the Ministry of Health has provided a final determination on chlorination requirements. Issues regarding capital reserve contributions for existing infrastructure replacement have been addressed in this business plan.