SMWS: long-term borrowing vs increased user rates
- Riley Gettens
- Mar 26
- 3 min read
The province remains firm: public money will not flow to privately-owned utilities. This post compares long-term borrowing (available to local governments) vs raising rates to fund work (the province’s funding option).
The province can’t borrow long-term. The Comptroller’s notice shows how this affects SMWS citizens.
2026 03 30 Update: Please note, my original post included the 'Availability of Service Charge (per year)' in the residential rate estimate. That is incorrect and my error. The 'Availability of Service Charge' is for vacant lots and is not part of the residential rate. I have updated the figures below, the errors are crossed out.
SMWS residents were recently notified that annual water bills could rise from $1,260 $̶1̶8̶9̶0̶ to $3,600 $̶5̶2̶2̶0̶. According to the letter, 57% or $2,052 $̶2̶9̶7̶4̶, would be deposited into the reserve fund. This will increase total annual deposits from
$125,000 in 2025 to $532,000 in 2027. See the Comptroller's table below in yellow.
The RDOS does not take a $33 million loan on day one. If the RDOS owned the system and borrowed long-term, in Year 3, approximately $2,511 would be added to your property's parcel tax to service $9.1 million borrowed and invested into the system. See the RDOS proposed debt service schedule below.
The comparison:
Status quo (no vote): $2,052 of annual utility bill in 2027 → $532,000 in reserves
Public ownership (yes vote): $2,511 per parcel in Year 3 → $9.1 million invested in upgrades
The math is simplified* for this post, but the point remains: similar cost to citizens; significant difference in outcome. The McElhanney SMWS Assessment estimates the initial phase of urgent work that must be addressed, regardless of future water source or treatment choices, at $10.1 million.
Local government have access to finance tools that the province does not.
Long-term borrowing: local governments take on debt and repay it over 30 years, future residents who benefit from the infrastructure help pay for it.
The Municipal Finance Authority provides communities with lower interest rates.
Local governments can apply for senior government infrastructure funding.
The RDOS does not take a $33 million loan on day one. Through the referendum, the RDOS secures the authority to borrow and will access funds as they are required over the next 12 years.
Learn more: Property tax deferral program
If you have questions, please email rgettens@rdos.bc.ca or call me at 250-488-0246. I am would appreciate the opportunity to offer any clarity that I can.
Thank you,
Riley
*The comparison in this post is based on estimates, simple math, and generalizations. As the RDOS borrows more, servicing the debt will be more expensive. Comptroller also confirms that additional special levies and capital charges will be used to raise the money required for the upgrades.
Last weekend, an anonymous "vote no" letter landed in the hands of SMWS residents. The letter distorts verifiable facts, presents and enhanced absolute worst-case scenario as the intended outcome, misinforms, and leaves the consequences of a 'no vote' entirely unexamined. That is called selective framing. For extra manufactured fear, the letter also targets the integrity of the process and the organization and people delivering it.
Distractions have made an already difficult decision even more challenging, forcing SMWS ratepayers to work harder to make a decision based on available facts, not on worst-case scenarios presented as certainties. If you have questions about what you are seeing in anonymous letters and social media posts, please call me.
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