Trustees and staff at Salt Spring’s largest water district may have a path toward a seemingly improbable zero per cent tax increase in 2026, should the will of ratepayers –– and of a federal funding program –– swing their way.
The hope comes despite the need for a new water treatment plant at Maxwell Lake, mandated by Island Health last year and incorporated into the North Salt Spring Waterworks District’s (NSSWD) resiliency-building plan –– a multi-pronged long-term roadmap that also includes a provincially-funded $10 million raising of the weir at St. Mary Lake and a significant pump station upgrade, enabling bi-directional supply of domestic water from either of the district’s lake sources.
Now, both the $14.6 million Maxwell Lake plant and the $1.78 million Crofton Road pump upgrade are part of a grant funding request, according to NSSWD CAO Mark Boysen, who told district trustees Thursday, Dec. 19 staff had raced to submit a timely application with the Canada Housing Infrastructure Fund –– a $6 billion source, with much of that available for improvement districts with projects that will remove barriers to new housing supply.
If successful, that funding could cover up to 40 per cent of the projects.
“I’ll bet we were one of the earliest applicants,” chuckled Boysen, crediting the district’s extant resiliency plans for a speedy and well-sourced application. “I think we’re in good shape, at least we put our best foot forward.”
Without figuring in the grant funds, existing reserves and projected revenues allocated for the required Maxwell Lake plant leave an $11.7 million shortfall, necessitating a loan whose annual payments are already on the books, even while district ratepayers will need to vote to approve the borrowing itself.
“The discussion we quite often have in the office is that we’ve been required by the province to build this, but we have to get approval from our ratepayers to pay for it,” said Boysen. “The other alternative –– not getting a loan –– is not a good story. It’s a very expensive option.”
2025’s annual $300 surcharge –– rising to $400 in 2026 –– is already approved by the board, but the grant’s potential $6 million reduction in the amount needing to be borrowed could cut the annual payment on a loan by half.
“What it could potentially look like is that we would be able to just hold at a $300-a-year surcharge,” said Boysen, “and not have to go up.”
The proposed Maxwell Lake plant has a final design and loan authorization through a referendum in the spring, with work beginning in early 2026. Updates from the district to Island Health on the plant’s planning process seem to have satisfied that agency, according to operations manager Ryan Moray, who told trustees there had been no concerns expressed with NSSWD extending the construction timeline.
“We will be bringing forward an ask, to confirm a process for that loan authorization,” said Boysen. “If I can bring grant news to that discussion, that would be great.”