This page was last reviewed on June 23, 2017.
The Village of Cumberland is conducting an Alternative Approval Process (AAP) from June 23 to July 28, 2017 to gain the approval of the electors to borrow
$1 050 100 for a maximum 30-year term for improvements to the drinking water system.
Cumberland has received a Clean Water and Wastewater Fund grant for 83% funding for this project, and the $1 050 100 represents the remaining 17% portion that the Village is required to fund.
The bylaw for elector approval is:
Water Improvements Loan Authorization Bylaw No. 1063.
Why is the Village is doing another AAP?
The Village conducted an AAP on this matter in February-March 2017. Unfortunately there was an error in the process, and the Village is required to redo the AAP.
Although there is a new bylaw and new process, the borrowing in question is the same borrowing that was considered in the “Water AAP” earlier in 2017. The amount and project have not changed, and there is no additional borrowing proposed.
Cumberland needs to upgrade its water infrastructure to become compliant with Island Health water treatment requirements. The upgrades will also improve the resiliency of Cumberland’s water supply.
The proposed improvements include the construction of a reservoir, construction of a new treatment plant with dual treatment using UV light and chlorine and twinning of the supply line, called the Water Supply Capital Improvements Project.
Cumberland’s drinking water issues include:
- Only one treatment process, instead of the two required by Island Health and the provincial Surface Water Treatment Objectives
- No treated water storage to help maintain chlorine in the water, in case of supply disruption, and to reduce the size of treatment equipment
- No secondary supply line to back up a 57-year-old supply main between Allen Lake and the treatment building
The proposed Water Supply Capital Improvements Project would ensure Cumberland meets the conditions in our water operating permit issued by Island Health, meet the Village’s water needs for the next 25 years, and make Cumberland more resilient and able to manage emergencies.
Cumberland has received a Clean Water and Wastewater Fund grant for 83% funding for this project. The total estimated cost of the improvements is
$6 038 400, which includes some ineligible costs not covered under the grant program. The major benefit of doing this project now is to take advantage of this funding from the provincial and federal governments. This AAP is to gain elector approval for the approximately 17% of funding not covered by the grant.
If Cumberland’s electors do not approve the long-term borrowing, the Village will still proceed with the water improvements, but Council will have to reconsider how to finance the unfunded $1 050 100 of the project.
If Cumberland’s electors approve the long-term borrowing, the Village proposes to pay back the $1 050 100 of long-term debt mainly using parcel taxes.
Costs would include:
- An estimated parcel tax of $74 per year (calculated equally per parcel) for a 20-year term, or $63 for a 30-year term
- The new treatment plant operating costs are estimated at $70 per year for a residential customer (with median residential water usage of 168 cubic metres per year)
- The total annual water utility costs, including the parcel tax and operating costs above, are estimated at $488 for a 20-year term or $477 for a 30-year term per residence (with median residential water usage, and including current water usage charges and frontage tax). This is an overall increase of $133-144 per year.
AAP Information for Electors
The AAP asks the electors of Cumberland whether the Village can proceed with long-term borrowing to fund water improvements. Elector approval is required for borrowing if it is for a period longer than five years. The AAP will succeed if fewer than 10% of electors (equaling 337 electors) submit an elector response form indicating their disapproval of the proposed long-term borrowing.
Electors may review the Information Package below, which includes the Notice of AAP, information about the project and how to participate in the AAP.
Results: The AAP concludes on July 28, and the results will be posted here on July 31.
November 14 2016 Staff Report on how the water improvements will be funded
May 23 2017 Staff Report on the need for a new AAP
May 23 2017 Staff Report on the process for the new AAP
See our Water System and Water Quality page for further information about Cumberland’s water system.
For more information, contact the Village Office at firstname.lastname@example.org or 250-336-2291.Search again