Your 2026 Notice of Tax Levy will display a levy called Asset Renewal. The Asset Renewal Levy is included in your Tax Notice every year, and is subject to change. Asset Renewal is collected to increase SSID’s reserves. At present, the amount in reserves is not enough to maintain the waterworks infrastructure as the parts age and need replacement.
SSID’s infrastructure is more than 50 years old. It is comprised of 16,000 feet (4,900 metres) of pipes, 2 wells, 2 pumps, 2 generators, 2 reservoirs totalling 50,000 imperial gallons of water, 5 outbuildings and a steel tower, 2 pump meters and 167 household meters, 13 hydrants, 13 hose cabinets, 4 pipe-end blowoffs, 17 gate valves and 3 air release valves. In 2019 and 2020, we replaced 10 old water meters, with funding from the reserves. In 2020, we replaced 1 of our 2 diesel generators. In 2022 and 2024, we replaced another 4 hydrants. In 2024, we replaced the 3 air release valves.
Over time, the infrastructure will cost about $7 million to replace. Most of that is in pipes at about $5 million, which fortunately are expected to last for another 60 years, although the pipe connectors and tees may have shorter service lives.
The reserves may also be used for unforeseen events, as in 2009, when $100,000 was used to fix the broken 40,000-gallon water tank, and for protective measures, as in 2012 when SSID bought a backup generator, well, and pump.
ASSET MANAGEMENT UPDATE - MARCH 2026
A professional tank inspection in July 2025 advised SSID that the Upper Tank may need replacement by 2040. SSID must set aside $1,464,000 for that possibility. This sum is based on 20 line items modelled after the calculations provided by the 2024 engineering report on new tank options. In addition to the $85 per property tax increase previously budgeted for 2026, SSID has added another $400 per property to the Asset Renewal Levy. The extra $400 will continue annually for the duration of 15 years to 2040.
BACKGROUND
The first inspection of the upper tank, in 2023, indicated the 2 bottom plates of the tank had notable corrosion, with a problem area that had corroded to half its original steel thickness. Corrosion was removed in spring 2024, and the affected areas treated with a rust inhibitor and rust paint. The follow-up inspection in 2025 determined that the rust treatment appeared to have arrested the corrosion, and therefore the tank should last to 2040 or longer. The report also required that a tank inspection be done every 5 years, the first being 2030, to confirm that the tank is not degrading faster than predicted.
The findings at each 5-year inspection or sooner may change the tax plan going forward.
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