It may take longer for Sechelt to get water meters, if at all. That’s because an alternative approval process (AAP) for a bylaw that would have authorized the Sunshine Coast Regional District (SCRD) to borrow nearly $6 million over a 20-year term to pay for water meter installations in the Sechelt area has failed.
Angie Legault, the SCRD’s senior manager of administration and legislative services, made the announcement Wednesday morning, stating in an email that detailed results will be shared at the July 26 board meeting, after Coast Reporter’s deadline.
The need to fund the project through a loan arose following an unsuccessful grant application. SCRD directors and staff recommended the 20-year borrowing term because it was considered less risky than a short-term loan, and that decision triggered the AAP.
Electors in the water supply and distribution service area – Areas A, Halfmoon Bay, Roberts Creek, Elphinstone, West Howe Sound and the District of Sechelt – were eligible to submit elector response forms. If 10 per cent of electors, or 1,957 people, submitted forms objecting to the bylaw, the board would not be able to proceed with the loan. The number of response forms submitted to the SCRD was not available before Coast Reporter’s deadline.
Borrowing $6 million to install meters proved to be contentious among residents. SCRD chair Bruce Milne told Coast Reporter he was not surprised by the results after having heard from people who oppose the loan over the past few weeks, including meeting with a small group last week about their efforts.
“Parts of the discussion we did hear were not as accurate as they needed to be so it’s difficult to know at this point exactly why people signed,” said Milne. He said he wants to know whether those who opposed the loan are from Sechelt or in other rural areas that already have meters installed, and their reasons for opposing the loan.
Sechelt resident George Goudie has been among the most vocal critics of the loan and campaigned to collect elector response forms across Sechelt, including on Cowrie Street and at the Independent Grocer, and at public events such as the Canada Day Parade. He estimates that he and his volunteers submitted 1,900 response forms to the SCRD prior to the July 24 deadline.
“People were upset. It’s my busiest time of the year, and I didn’t have time for this, but again, somebody’s got to stand up,” Goudie told Coast Reporter. Goudie said he wants the SCRD to focus on increasing water supply before spending on conservation.
According to an SCRD information package about the process, “If the AAP fails, other options such as proceeding to referendum or funding the project through the use of short-term borrowing or reserve funds may be considered.”
A short-term loan over five years would require a rate increase because revenues from current parcel tax rates are insufficient to fund the cost of the debt. According to an SCRD FAQ, a parcel tax increase of 20 per cent would be needed to “maintain adequate cash flow over the borrow term without drawing on reserves,” while a combination of funding through short-term borrowing and reserves would “decrease financial flexibility for funding future water-related infrastructure projects.”
The installation is part of the SCRD’s water supply and conservation strategy, which includes three other projects: the Chapman drawdown, groundwater investigation and a raw water reservoir. Water meters were installed between 2014 and 2017 in Pender Harbour/Egmont, Halfmoon Bay, Roberts Creek, Elphinstone and West Howe Sound.
Milne said he wants to see the board have a “measured” response, which would entail asking SCRD staff to prepare a report with next steps for a board meeting in a month’s time. “I certainly don’t think we should rush to take a step that we’re not sure where it would go and I don’t think short-term borrowing is a wise thing to do on this.” He said first the board would need to consider calling a referendum.
