Regional District Funding for Small Water Systems

Year
2023
Number
EB47
Sponsor(s)
Thompson-Nicola RD

Whereas in the interest of providing a safe potable drinking water supply, Regional Districts are encouraged by the Province to assume ownership and operation of failing or deficient water systems owned by improvement districts, water users communities, societies and private development; And whereas these water systems are not financially viable as they are very small in size frequently less than 100 customers with limited access to funding, they are located in rural or remote rural communities with a very limited tax base, and with no opportunity to amalgamate with other water systems to achieve economies of scale: Therefore be it resolved that UBCM ask the Province of British Columbia to assist regional districts by developing a means by which sustainable funding can be provided for very small water systems, so as to ensure these systems are built, operated, and maintained in a sustainable and safe manner.

Provincial Response

Ministry of Municipal Affairs The province recognizes the challenges in managing small water systems, and the desire to ensure small water systems are built, operated, and maintained in a safe and sustainable manner. Local services are encouraged to work toward cost recovery from user fees, taxes, and where applicable, development costs. The Ministry of Municipal Affairs will work with regional districts on ways to scale those elements of water provision that are most effective to reduce costs and to explore the range of options and alternatives for small service areas. The provinces current funding to local government systems is project based to help meet emergent capital costs associated with changing regulatory requirements around public health and safety, as these costs are more challenging to plan for, where systems are largely self-sustaining and also contribute towards the costs of the upgrade. Infrastructure funding programs can provide support for capital works to meet drinking water requirements where conversion to local government service areas is undertaken. Regional districts are encouraged to administer small water systems where these systems serve communities as the preferred model to deliver rural services. The administrative structure provides good governance and financial accountability, integrated planning, and where practical, economies of scale. The Ministry will continue to assess and explore solutions to address the on-going financial challenges of small water systems, as well as the needs of local governments who are considering assuming ownership of water systems.

Convention Decision
Endorsed