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Preamble:
WHEREAS the Government of Alberta supports rural sustainability and quality of life through various programs; and
WHEREAS water and wastewater distribution systems in Alberta require repair and replacement to ensure the health and safety of residents; and
WHEREAS the Government of Alberta’s 2024 budget only included minimal funding for new water and wastewater systems, not funding for the repair and replacement of existing systems; and
WHEREAS many municipalities struggle to fund the necessary repairs to existing water and wastewater systems, thus making costs for residents unaffordable; and
Operative Clause:
THEREFORE, BE IT RESOLVED that the Rural Municipalities of Alberta advocate for the Government of Alberta to restore Water for Life Program (WFLP) funding levels and expand WFLP eligibility to include water and wastewater distribution system replacements and maintenance.
Member Background:
The County of St. Paul Regional Water System provides municipal water and wastewater services to the hamlets of Ashmont, Mallaig, and Lottie Lake. Each hamlet has a water distribution system, with Mallaig and Ashmont having wastewater collection systems and lagoons. Today, that infrastructure is reaching its end of useful life, causing various issues that are costly to fix.
The County has spent more than $375,000 on professional, legal, and engineering services to develop a detailed infrastructure replacement plan, outlining a phasing and funding strategy. The estimated cost for this plan in 2021 was $23 million (or $1.6 million per year to service the debt if the County borrowed the amount). This estimate has likely since increased with inflation.
For the estimate currently on hand, the County has determined that 45% of the costs will be funded through tax revenue, reserves, and utility rates designed to cover the full cost of water distribution and wastewater collection systems.
Without provincial support, the 300 properties in these hamlets are left to cover the remaining 55%, paying approximately $3,000 per year for 30 years. This is almost double their current annual property taxes, meaning they will be paying three times more than their current taxes. This is not sustainable nor feasible to expect these communities to take on these costs.
The County of St. Paul is not the only municipality facing these issues, as many rural and small urban municipalities have similar infrastructure issues and costs with declining populations. RMA used municipal data and surveys on water utilities to prepare a portfolio on the lifespan and health of this infrastructure, which showed that the funding needed to bring rural municipal infrastructure to a manageable and cost-effective state is $2.96 billion more than municipalities currently have access to.
RMA Background:
RMA has no active resolutions directly related to this issue.
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