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Rose Valley Water Treatment Plant Report to Council moves forward to recommend establishing Local Area Service and long-term borrowing

Posted On Monday July 13, 2020
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West Kelowna Council will review a report that recommends establishing the Local Area Service (LAS) and Loan Authorization Bylaw at tomorrow’s regular Council meeting for the Rose Valley Water Treatment Plant (RVWTP).

Council will consider options for RVWTP LAS property owners about how they would pay for their water service. Long-term borrowing of up to $23.5 million is recommended when required in 2022. The long-term borrowing model has successfully been used for the city’s previous significant sewer projects and the Powers Creek Water Treatment Plant.

As the City continues to adhere to social distancing requirements by BC’s Provincial Health Officer, a Council Initiative – Subject to Petition Against (mail-in) process is recommended to determine if no sufficient petition against the local service area and long-term borrowing exists.

The purpose of the report is to:

  • Inform and seek Council’s endorsement to begin the process of establishing a Local Area Service (LAS) for future RVWTP users (8,246 properties as of July 13, 2020);
  • To inform and seek Council’s endorsement of recommended long-term borrowing, and begin a Council Initiative – Subject to Petition Against process to determine if RVWTP LAS property owners are opposed to long term borrowing of up to $23.5 million, and what the alternative implications are (e.g. short-term borrowing) as the project proceeds;
  • To confirm that the planned RVWTP annual water rate increase of $34 divided over two years ($13 in 2021 and $21 in 2022) remains unchanged and no additional annual increases to design, build and finance the plant are required; and
  • To confirm that the $34 increase (from $116 to $150 annually that would transfer from the utility bill into a parcel tax) will cover the cost to design, build and finance the plant over the long-term borrowing period.

If Council endorses the LAS and recommended long-term borrowing model, the process would immediately begin and continue through late summer. This includes mailing a package to RVWTP LAS property owners that, based on any forms received by the City within the 30-day period, will subsequently inform Council about the use of long-term borrowing for the RVWTP.

It is not about whether the RVWTP will be built. It is about the best option to pay for water service.

For more information, and to view the report, visit westkelownacity.ca/mayorandcouncil or go directly to the July 14 Agendas and Minutes page.

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2760 Cameron Road,
West Kelowna, BC, V1Z 2T6
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