Alternative Approval Process (AAP) – Bralorne Sewer System Local Government Conversion and Establishment Bylaw No. 585, 1995, Amendment Bylaw No. 1614-2019
In 2016, the SLRD was awarded a Gas Tax grant of $1,999,530.00 (the “Grant”) for the new Bralorne sewer system project (the “Project”). The Project comprises 2.3 km of piping, 107 service connections and a new wastewater treatment plant capable of meeting modern standards. The Project is considered critical to the long-term health and sustainability of the Bralorne community.
In order to receive the full amount of the Grant, the Project must be completed by December 31, 2019. Otherwise, a claw back of $299,929 is expected to be applied (15% of the Grant = $299,929). To address the shortfall between the Grant funding and the actual cost of the Project, the SLRD has been working to secure additional loan financing.
- Visit the Bralorne Sewer AAP Page for additional information and links to important forms and documents.
The scope of the Project has been reduced.
On February 27, 2019, the SLRD Board authorized a short-term loan (i.e. 5 years) of $300,000 (“the “Loan”) for the purpose of completing the Project. The estimated annual debt servicing costs are $69,000 for a total of 5 years. Please see below for financial impacts.
In order to cover the debt servicing associated with the $300,000 loan, the SLRD is in the process of seeking elector approval via Alternative Approval Process (“AAP”) to increase the maximum annual requisition under the Proposed Bylaw.
This AAP is the third attempt to obtain elector approval of the funding required to complete the Project. If elector approval is not obtained, then the following will occur:
- the Project will not be completed at this time;
- it is expected that the 15% claw back of the Grant will be applied (i.e. which means forfeiting funding of $299,929); and
- the existing, outdated sewage treatment system will continue to be used pursuant to the terms of the existing discharge permit which requires septic treatment only. (But please see the following two paragraphs: the provincial government may not allow the use of this outdated system to continue.)
Although the Bralorne sewer system is currently exempt from having to meet current community wastewater standards (such as the requirement to have a secondary treatment component), the exemption is not ensured to remain in place indefinitely - the provincial government has previously advised the SLRD that it could potentially require the secondary treatment via imposing a permit amendment to the existing discharge permit.
If the Project is not completed and the provincial government requires a secondary treatment component to be implemented in Bralorne, the SLRD would then explore how loan financing could be secured and the associated tax requisition increase for the debt servicing costs. At a minimum, what would be required is the total of $300,000 (current identified funding shortfall) + $299,929 (portion of Grant expected to be forfeited) + undetermined construction cost escalation.