The Regional District of Okanagan Similkameen is approaching the final steps before acquiring the Sage Mesa water system with a request for a loan to cover up to $33 million in necessary upgrades.
If the Inspector of Municipalities approves the loan, the RDOS will then approach residents on the water system for a referendum to finalize the purchase and loan.
The Sage Mesa water system is currently run by the provincial government, but there has been discussions with the district about taking it over for several years.
Many residents who are hooked up to the system have been on boil water notices since 2019. There are over 240 properties that would be impacted by the acquisition of the system.
The $33 million would not necessarily be a single expense and tax, but would be spread out over 13 years and possibly less if certain expenses either come in under budget or are not needed.
That amount is also based on a worst case scenario where the RDOS is unable to get any grant funding for upgrades.
In that scenario, residents on the Sage Mesa system would be looking at an estimated annual parcel tax of $8,700 over 30 years.
The $33 million figure is also dramatically higher than the RDOS board had been presented as recently as June of 2024, when the estimated cost for upgrades was around $19 million.
In June, the difference in cost estimates between upgrading the current lake intake and switching over to the City of Penticton was about $1.8 million, with the city option coming in around $6.39 million, compared to the rebuild option at $8.2 million.
The RDOS is currently working on a feasibility study in collaboration with the Penticton Indian Band for the water treatment plant.
Water distribution upgrade costs were estimated at $6.62 million, and between $3.65 to $4.15 million to replace the reservoirs in June as well, for a total combined cost range of an estimated $16.6 million to $18.47 million in upgrades.
The RDOS is working on a communication plan with residents that would include open houses at the West Bench Elementary School.
If the referendum fails, the system will remain with the province and will likely still necessitate upgrades and costs for residents in some manner.
