Details about a major grant toward a drinking water project on Salt Spring Island have begun to dribble out, with ratepayers in the North Salt Spring Waterworks District (NSSWD) hoping for some relief — and district officials keeping mostly mum, in deference to the federal government’s plans for announcement.
“We’re still awaiting the word,” said district CAO Mark Boysen, who told trustees at their meeting Thursday, May 21 that he could publicly say that staff expected a draft agreement imminently — and that their proposal, seeking funding assistance for the Maxwell Lake treatment plant and an upgrade to the Crofton Pump Station, had been accepted in principle.
That could put upwards of $6 million — roughly 40 per cent of more than $16 million in projected costs — toward the two projects, significantly increasing the resiliency of Salt Spring’s drinking water supply. Dollars would flow to the district through the federal Build Communities Strong Fund, a $51 billion initiative toward a wide range of infrastructure projects across Canada.
“Based on our current cost, our eligibility looks like about $6.2 million,” said Boysen. “There will be a communications component that the federal government will be leading; once they do theirs, we can announce [details].”
Financial officer Tammy Lannan explained that, assuming the grant finalizes as expected, the district would be submitting monthly invoices to the program, and 40 per cent of eligible costs would be reimbursed.
The funding puts options on the table for the water district, she added, possibly including lowering the annual debt repayment — by utilizing less of the planned $11.7-million loan or even looking at shorter terms.
“I can guarantee that next year, we will not be raising the tax by the $50 we were anticipating,” said Lannan. “So that’s good news.”
Potentially reducing the tax isn’t off the table, she added, although it’s far from certain. For a tax reduction, according to Lannan, the interest rate environment would need to be favourable; the district passed a borrowing referendum last year to help pay for the two projects, part of NSSWD’s strategy to improve water supply resilience — and drinking water quality — in the next few years.