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October 28, 2017 12:32 pm

Local Service Area Tax Up for Approval

Monday, December 16, 2013 @ 3:58 AM

Prince George, B.C.- Council for the City of Prince George is back to work this evening, and  establishing a Local Service Area tax  for the installation of a sewer system   is on the agenda.

A while back , some residents of the Wallace  Crescent area of the Hart Highlands,  approached City Hall about the installation of a sewer system.  Many of the septic systems in the area are reaching the  end of their life span.

After  consultation with the neighbourhood,  and  a petition which  garnered support from 61% of the residents, representing  60% of the  assessed value of the  properties in the  area ,  City Staff   proceeded to cost out the project and what that might mean to the neighbourhood.

The cost of  installing  sewer  lines to  Wallace Crescent, Wallace Place, Berwick Drive, Dundee Drive and a portion of Langley Crescent,  would be $2.42 million dollars.  Split among the 100 properties involved,   it would mean each  property owner would be on the hook for  $24,200.00

The  property owner could pay it out in a lump sum,  or,  could spread the payments out  over time.  If approved, construction would start  in 2014.

Council will have the final say on whether or not this project will go ahead.

Comments

“After consultation with the neighbourhood, and a petition”

How come Haldy Rd didn’t get the same attention?

“That’s different”. You remember that phrase, doncha? Works like a charm to get around anything. Ha ha ha .

when the city put the sewer up north Nechako a few years ago side roads were not even an option. what they did do was houses with north Nechako frontage were hooked up to city sewer even though those houses had a side road address, everything was hush hush. now when I had problems with my septic field and requested to be hooked up to city sewer I was told flat out no do a survey of your neighbours and maybe they would consider this. then the city sewers guy tells us put in a holding tank, moron.this is when my wife loses it and tells him when it backs up she is going to collect it and dump it on city hall. well in their gracious change of heart they say ok we will put it in but it will cost you 24000 dollars to dig about 20 feet and all monies up front no deferral that’s why ive moved from this shithole tired off and having to put up with getting taxed to death and playing games

yet everyone in north nechako has to pay 3 to 5 grand a year in property axes!

The article is wrong in that the cost is only an estimated cost and not a final cost. The letter to residents says it is estimated, and any cost overruns will be applied to the final price billed to the home owners.

So the basement price is $24,200 per home, and then it goes up from there. This is an area that involves a 15% slope and we all know what happened with University Way in cost overruns. At the base price of $24,200 deferred at today’s interest rates for 20 years is $32,211… but we are at record low interest rates so the servicing cost is sure to go up as well. The price could easily go up by 50% or more when all is said and done.

At the end of the day this is only to bring the service to the street and not the full cost of having a home hooked up to it as well… that is extra and the cost of each individual home owner. Those not able to pay the extra $15,000 for the hook up, or those with no issues with their septic systems, will be given a grace period of a year before their local service area improvement payments come due whether the home is hooked up to city sewer or not.

So final cost is more like:
$32,211 deferred LSA Tax
$16,100 50% cost over runs
$15,000 service from city infrastructure to home
+ plus
$32,000 Interest rate risk as deferred cost (plus over run costs) is based on a 3% interest rate for the life of the deferred payment and the OECD says Canada’s rate should be closer to 8%.

So total cost is more than likely to come in at around $95,000 over a 20-year period, or $5000 a year… in addition to the regular city taxes and utility bills.

Makes this too rich for me. That is like 40% of the value of my house in a tax I didn’t want and don’t need. For some other home owners with crappy septic systems it makes sense for them.

I have to feel bad for the residents who just spent 20 to 30K on their new septic systems on Wallace because this came just a bit too late. This is a reality for some.

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