The cost of doing business is going up in all seven of Bowen’s water systems, and the Snug Cove Sewer System too.
All eight local advisory committees (LAC) approved the increases in their own five-year financial plans. They’ll now be included in the municipal five-year financial plan being presented on April 24.
The rising costs will contribute to a range of projects happening across the eight systems. While the hikes are island-wide, some will be much more noticeable than others.
Cove Bay Water
Expenses coming from the anticipated opening of the Cove Bay Water Treatment Plant will add around $70,000 to the operating budget. User rates will go up around $20 each billing cycle, while consumption rates will increase and the metered rate threshold will drop.
Hood Point Water
A small budget hop of 12 per cent will take place in the northeast part of the island, as the LAC total rises to $97,602 from $86,980. The average user will see user rates and parcel taxes jump five per cent each, for new bills of $882 (user rate) and $441 (parcel tax). Nearly half of this will go toward building reserves.
Bluewater Park Water
This year’s operating budget is going up about $40,000, with just over half of that going to pay interest on debt. This will result in an annual payment increase from the current $1,085 to $1,302. Going forward, Bluewater Park is attempting to work out a common cost allocation model with the neighbouring King Edward Bay and Bowen Bay water systems.
Tunstall Bay Water
User rate increases of five per cent will be introduced this year. The LAC is currently exploring options for repaying a $555,000 loan. It’s currently due to be repaid in five years, but they’re hoping to extend this to nine years.
Eagle Cliff Water
The LAC will spend $200,000 this year to begin design work for a potential connection to the neighbouring Cove Bay Water System. Whether this becomes a reality or not relies largely on the result of a grant application Eagle Cliff has made to fund the project. While they wait for a decision, it was decided the design process should still begin. This will result in a 12 per cent budget rise this year, which will be collected from an increase of $50 in the flat rate to $600, and a $100 increase in parcel taxes to $500. High usage rates will also go up.
Bowen Bay Water
The new rate in the west side LAC will be $1,216 following a 13 per cent budget increase. The next five years will include annual contributions of $12,000 for capital equipment replacement. Along with Bluewater and King Edward Bay, the three systems are working on a cost allocation model.
King Edward Bay Water
It’s a large jump to the operating budget of 24 per cent in this LAC, with the total coming in at $79,000. This is partly due to last year’s totals which hit about $75,000, over the 2022 budget of $64,000. This likely won’t be a common occurrence though, as the $10,000 overrun was due to one-time work on a new well in the area.
The annual rate this year for King Edward Bay users is $1,216, mirroring the Bowen Bay total. The two systems are also coming in equal on the annual $12,000 spent on capital equipment. The LAC is also expected to receive $40,000 from Bluewater Park this year in exchange for them tapping the KEB water supply. And, along with Bluewater and Bowen Bay, shared cost allocating is being explored.
Snug Cove Sewer
Phase 1 upgrades to the Wastewater Treatment Plant are expected to be completed soon. This year’s budget has $560,000 remaining to spend on the project. Going forward, significant increases to the user rates (up 20 per cent) and parcel taxes (up 25 per cent) are set to take place. They’ll go toward building a reserve fund for the LAC, since it is currently empty.
