Tuesday, October 7, 2008

The origin of the 7% principle.

In the late 1970's Vernon embarked on a visionary new way of treating and disposing sewage referred to as the spray irrigation system.

Okanagan Lake was seriously polluted with residential sewage and the Government of BC decided to act.

Accordingly, they agreed to provide 75% funding for the upgrade of Vernon’s antiquated sewage treatment plant subject to a successful referendum. They also approved the proposed spray irrigation system.

At the same time the Government realized an opportunity to involve Coldstream as well so the west end of Kalamalka Lake would be protected from septic tank pollution. Thus, Coldstream’s west end was included in the referendum to approve the borrowing of the necessary funds for the project. In Coldstream only the specified area residents were involved in the referendum but the original specified area was enlarged during the ensuing four years.

The Okanagan Basin Water Board (OBWB) has a mandate of collecting a small mill rate annually from every resident within the Okanagan Basin and use these funds for the protection of the lake. One of the approved mandate of the Board is to provide 18% grant for every approved sewage treatment and improvement project within the Basin. Thus, the Vernon project including Coldstream’s project were eligible for these funds.

Due to these two grants residents of Vernon and the specified area of Coldstream (Specified Area 1 or SA1) were only responsible to pay 7% of the financing. This is where the 7% principle originated.

The previous Council argued that since SA1 residents only paid 7% of the financing costs residents along the now infamous McClounie-Mackie Drive trunk line should also contribute only 7% of the total cost of financing that line.

There was no precedence to this assertion. Neither Vernon nor previous Coldstream Councils ever applied this principle in the previous 30 years. How this notion was developed is a mystery. It is also wrong.

Government grants are generally provided for projects the government of the day deems vitally important. There is no question that protection of the lakes was vitally important. There is no evidence that there were serious environmental or health concerns along the McClounie-Mackie Drive line. Thus, there was no Provincial grant available.

Lacking Provincial grants Council raided the existing utility’s reserves and removed $665,000 from the reserve which equaled roughly $370 per household. Since these funds had to be replaced our sewer rates increased. That is why our sewer rates are so high.

Unreasonable burdens such as the one described here should never be placed on taxpayers who are struggling to make ends meet. Fairness is an important criterion for any government.

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I have been a resident of Coldstream since 1976. I have had 15 years of experience on Council, 3 years as Mayor. As a current Councillor I am working to achieve fair water and sewer rates and to ensure that taxpayers get fair treatment. The current direction regarding water supply is unsustainable and I am doing all I can to get the most cost effective water supply possible.