UDI: TAXPAYERS STAND TO BE SOAKED BY $2 BILLION CRD WATER PLAN

June 24, 2024

VICTORIA – Taxpayers in the Capital Regional District can count on their water bills increasing if the Capital Regional District moved ahead with plans to build a new water treatment plant and upgrade the current water system.

“The proposed water system overhaul would cause water bills to surge by 200 to 500 percent, which is a huge financial strain on residents at a time when housing demand is far outpacing availability,” said Rory Kulmala, CEO of the Vancouver Island Construction Association. “We need a more thoughtful and affordable solution that focuses on conservation and improving our existing system.”

People across Greater Victoria are already feeling the pinch of rising costs from inflation, municipal tax increases, and the rising cost of housing. The proposed water system will dramatically increase water costs and homeowners will get soaked if this water plan, which lacks technical or financial due diligence, moves forward.

Taxpayers had a rare opportunity to hear about the project and raise concerns when the CRD hosted an online Public Virtual Information Session on June 19.

Taxpayers may not have noticed the threat to their wallets due to the lack of meaningful consultation by the CRD, or the fact that the regional government is only talking about charges applying to new housing. The proposed Development Cost Charges on new projects would add more than $9,000 to the price of a new house, and around $5,000 to the price of a condo.

These charges would start before there is a fully costed plan and a clear picture of exactly what would be delivered. This is paying the bill before you know what’s being ordered – or the price tag,” added Ben Mycroft, Chair of the Urban Development Institute – Capital Region.  “These charges would be another blow to housing affordability on the South Island and could result in much needed housing construction being shelved because it’s too expensive to build.”

The current water system is gravity fed – meaning it costs little to operate, has minimal environmental impacts, and can deliver water during power failures. The CRD’s proposed billion-dollar plan would scrap this system envied by the rest of North America and replace it with pumps and equipment requiring huge operational costs, massive amounts of power, and extensive greenhouse gas emissions.

“There is a better way forward – for taxpayers, for the water system, and for sustainability. With minimal expense, water conservation could be promoted and the current water system could meet the needs of communities for the next 30 years,” added Kerriann Coady, Chief Executive Officer of Canadian Home Builders’ Association- Vancouver Island. “Promoting conservation can buy the time needed to fully research options and come up with a realistic, affordable plan. I encourage the public to tell the CRD to stop rushing ahead with an unneeded luxury water plan and plant.”

Taxpayers can also complete an online survey about the proposed water plan before July 3. Though it is focused on the charges on new housing and fails to talk about eventual water bill impacts, people can share their concerns about the costs during the survey. It can be found at https://getinvolved.crd.bc.ca/water-supply-dcc/surveys/development-cost-charge-program-survey

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