Your 2023 Notice of Tax Levy shows a levy called Asset Renewal. It is included in your Tax Notice every year, and is subject to change.
Asset Renewal is being collected to increase SSID’s reserves. At present, the amount in reserves is not enough to maintain the waterworks infrastructure as the parts get old 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 standpipes, 17 gate valves and 4 air relief 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, we replaced 2 hydrants, and will replace more in 2024.
Late 2022, it came to the attention of the SSID Trustees that the lifespan of the two water tanks was probably much less than the original projection of 99 years (to the year 2069). On April 14, 2023, SSID did a thorough tank inspection and steel thickness test to get a better idea of the condition and longevity of the tanks. In anticipation of a tank replacement by 2035, taxes were raised for the year 2023, and will be further affected by the report on the inspection, not yet available.
The Asset Renewal levy is calculated by determining how much longer each part of the water infrastructure might last, and how much it could cost to replace each part at that future date, so that we know how much must be collected through taxes until then. The current value of the entire infrastructure is estimated at $2.5 million, and over time is estimated to cost $6.9 million to replace. Most of that is in pipes, at $5.8 million, which fortunately are expected to last for another 60 years.
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.