THE NEW ASSET RENEWAL LEVY
Your 2019 Notice of Tax Levy shows a new tax called Asset Renewal Levy. The Levy is set at $50 per property in 2019, and will be included in your Tax Notice every year. The amount is subject to change. The other two taxes—the District Tax and the Connection Tax—are the same amounts in 2019 as they were in 2018.
The Asset Renewal Levy is being collected to increase SSID’s reserves. At present, the $125,000 in reserves is not enough to maintain the waterworks infrastructure as the parts get old and need replacement.
SSID’s infrastructure is 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 165 household meters, 13 hydrants, 13 hose cabinets, 4 standpipes, 17 gate valves and 4 air relief valves. In 2019, we will start replacing old valves and water meters, with funding from the reserves.
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.
The reserves are not used for the ongoing operations, maintenance, and administration of Savary Shores Improvement District. Those costs are funded by the District Tax and Connection Tax.
The Asset Renewal Levy is calculated by determining how much longer each part of the infrastructure might last, and how much it will cost to replace each part, so that we know how much to collect through taxes. The current value of the entire infrastructure is $2.3 million, and over time is estimated to cost $6.4 million to replace. Most of that is in pipes, at $5.4 million, which fortunately are expected to last for another 60 years.
We note that SSID’s 2019 taxes per household are still less than comparable water systems:
• Lund Water Works $850.00 after early-pay discount. Source: Lund Water Works Improvement District
• Myrtle Pond Water System, south of Powell River, $1,275. Source: 2019 Financial Plan, qathet Regional District
• Beddis, Sticks Allison, Fulford, and Highlands/Fernwood households, all in the Capital Regional
District, ranging from $1,465 to $2,030. Source: Lund Water District Water System Condition Assessment, McElhanney.