Whereas BC regional districts, at the direction of the Province, have assumed responsibility for many small community utility systems water and wastewater; And whereas small community utility systems are not sustainable if funded by user fees alone: Therefore be it resolved that UBCM ask the Province to establish an annual funding mechanism for small community utility systems less than 500 connections which matches the revenue from user fees charged by the regional district; And be it further resolved that the Province consider using funding from Property Transfer Tax of the homes connected to the utility systems for this purpose.
Ministry of Housing and Municipal Affairs Regional districts are encouraged to administer small water systems where these systems serve communities as the preferred model to deliver rural services. The administrative structure provides good governance and financial accountability, integrated planning, and where practical, economies of scale. The Province recognizes the challenges in managing small water systems and the desire to ensure small water systems are built, operated, and maintained in a safe and sustainable manner. Local services are encouraged to work toward cost recovery from user fees, taxes, and where applicable, development costs. Legislation requires all water systems, regardless of type or size, to be financially self-sufficient, setting water rates appropriately to operate, maintain, upgrade, and replace their infrastructure. The Province recognizes that for some smaller water systems, depending on the complexity of treatment needed, geography of the system, proportion of residential connections, the level of historic investment in maintenance and upgrades, and other factors, maintaining and upgrading systems is becoming increasingly difficult to fund through user fees. The level of service standards to distribute clean drinking water to households and meet regulatory requirements for treatment are often similar between more urban and smaller rural systems. The ministry will continue to assess and explore solutions to address the ongoing financial challenges of small water systems, as well as the needs of local governments. Provincial revenue sources are not typically linked to specific initiatives.