Cost for clean drinking water up 30 per cent for South East Kelowna

KELOWNA – A $22 million shortfall in the cost of amalgamating the South East Kelowna Irrigation District with the City of Kelowna water utility is because so many other cities and towns in the province are doing the same thing at the same time.

Senior engineer Ron Westlake told Kelowna councillors that an increase from the budgeted amount of $63.7 million was expected because other communities are also taking advantage of federal and provincial infrastructure grants to upgrade their water systems.

With a completion deadline and a limited number of companies capable of completing specialized projects such as water infrastructure, price increases were inevitable, he added.

“We anticipated there would be industry stress,” Westlake said.

The new cost of $86 million will cover the construction of a separate domestic water system which will operate alongside the existing system.

About half the new price tag will be covered by a $44 million grant from senior government. The price increase will be financed over 20 years and paid back by South East Kelowna ratepayers.

A further $6 million will come from city water infrastructure reserves.

South East Kelowna ratepayers can find out more about the price increase and financing strategy at an open house this Thursday, May 17 from 3 p.m. to 7 p.m. in the East Kelowna Hall at 2704 East Kelowna Rd.

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