Sustainable Funding for Small Water Systems

Year
2025
Number
EB48
Sponsor(s)
Comox Valley RD

Whereas the small water systems in rural British Columbia, which are administered by local governments, provide essential services to rural residents and communities, yet they face unsustainable financial burdens due to the high costs of water treatment systems, ongoing maintenance, and replacing aging infrastructure, which can amount to millions of dollars; And whereas it is not possible for rural residents and communities to finance these systems through local taxation alone, threatening the viability of these water systems and the communities they serve, while also posing a significant risk to local food security: Therefore be it resolved that UBCM request the provincial and federal governments to establish long-term sustainable funding programs specifically for small water systems to address high cost and regulatory compliance requirements and to safeguard local food security, and for a collaborative approach to funding and support, including cost-sharing models, grant programs and capacity-building initiatives, to enable small rural water systems to remain viable and resilient amidst growing environmental and economic pressures.

Provincial Response

Ministry of Housing and Municipal Affairs There are many small water systems throughout the province, of varying scales and governance models. The Province recognizes the value that regional districts provide in supplying smaller rural communities with clean drinking water, leveraging opportunities to share costs and capacity across systems. Local services, no matter what governance model, are encouraged to work toward cost recovery from user fees, taxes, and where applicable, development costs. All water systems, regardless of type or size, are required to be financially self-sufficient, setting water rates appropriately to operate, maintain, upgrade, and replace their infrastructure in accordance with the legislation. While maintaining and upgrading systems is becoming increasingly difficult for some smaller water systems to fund through user fees due to rising costs to replace infrastructure, climate change, and other factors, local governments can seek support for capital projects through infrastructure funding programs. The Province continues to advocate the federal government for long-term bilateral funding programs to support local government infrastructure needs related to meeting regulatory requirements and improving resilience. The Province is pleased to work with Canada and with the Union of BC Municipalities on the renewed 2024 to 2034 Canada Community-Building Fund, which provides regular, long-term flexible funding toward local government infrastructure priorities within eligible categories, including for drinking water. In this context, the Ministry of Housing and Municipal Affairs continues to assess and explore solutions to address the ongoing financial and regulatory challenges of small water systems and the needs of local governments.

Convention Decision
Endorsed