The ageing water system infrastructure throughout the three hamlets is reaching its end of useful life at more than 50 years old. As time passes and pipes age, they become more prone to breaks and cause significant service disruptions, risking water quality and service reliability. Examples include:

• In 2023, the County spent more than $30,000 to fix a water main break in Mallaig.
• Residents of Lottie Lake consistently experience low water pressure and unreliable access to water due to an undersized distribution system that does not meet current demands.
• In 2019, it cost the County more than $40,000 to replace 150 metres of Ashmont’s water main.

The number of repairs that have been needed in recent years due to ageing infrastructure has increased, with the associated costs continuing to rise with inflation.

Addressing these issues proactively will help improve residents' service experience and reduce the cost of fixing the problems when they occur.

In 2019, the County completed a service assessment to evaluate the condition and performance of the water and wastewater infrastructure in these hamlets. The results indicated that the most effective way to provide reliable service to the residents is to replace the water distribution and wastewater collection systems in Ashmont and Mallaig and the water distribution system in Lottie Lake.

The County of St. Paul Council commissioned the 2021 Feasibility and Implementation Study to design, size, and estimate the cost of replacing the water distribution and wastewater collection systems in these hamlets, as well as prepare a phasing and implementation strategy that outlines financial and investment requirements for the County. The total cost of this project was estimated at $23 million based on 2021 prices.

Some parts of the project, such as design and sizing, condition assessments, and improvement to water facilities in Ashmont and Mallaig are already happening.

The construction and replacement of the water and wastewater mains will depend on the availability of funds and provincial support. Your Council is diligently working on securing funds and obtaining provincial support. Without provincial funding, this project will have a significant cost impact on the residents and will hinder the implantation of the improvements.

Your Council has worked diligently to find ways to lower the cost and the impact on residents. They have thoroughly assessed multiple funding scenarios and explored revenue options to reduce the financial impact on residents of these hamlets.

Part of this assessment included a camera inspection of the sewer mains utilizing $120,000 of general tax revenue to assess whether cost savings could be realized with a different construction method and lining the existing sewer mains. Unfortunately, the conditions of these sewer mains were not conducive for this and, after careful consideration, it became evident that most of these sewer mains need to be replaced completely. On the plus side, the information obtained from the camera inspection can be used to design and size the new wastewater collection systems that will replace the old systems. This project is costing the County around $80,000 and is being funded through the general tax revenue.

The County is working with Urban Systems, who are currently designing improvements for the estimated $600,000 work to the Ashmont and Mallaig reservoir and pumping stations and truckfill facilities, with a plan to construct in 2024. This portion of the project has already been paid for by funds from the County’s general reserve.

The County is also paying $200,000 to design the Lottie Lake water distribution system, which is currently underway. This project was funded through general tax revenue in 2023 and 2024.

The total cost of this project is estimated at $23 million based on 2021 unit costs.

The affordability for residents in these hamlets is a top priority for the County. Your Council also considered fairness and equitable cost allocation. Better services in these hamlets could indeed contribute to better economics and growth of the entire County; however, residents of these hamlets benefit more directly from this project. Therefore, it is fair for them to pay a portion of the projected costs.

Council is allocating funds for the road rehabilitation portion of the project through general tax revenue paid for by all County residents, as roads are used by everyone.

The truckfill, water reservoirs, and pumping facilities improvements in Ashmont and Mallaig are also being funded through general tax revenue as they benefit both hamlet and other residents and users in the County.

A new charge of Capital Replacement Contribution ($15/month for water and $10/month for wastewater) has been added to the utility bills of residents in Ashmont, Mallaig, and Lottie Lake to cover a portion of the costs of the replacement of water and wastewater services. The County will collect and keep this money in a reserve fund specifically allocated for water and wastewater capital improvements in each hamlet.

With all of the named funds here, approximately 45% of the project cost is paid for by the general tax revenue, reserves, and utility rates. For the remaining 55% of the project, the County is looking into provincial grants as well as Local Improvement and special taxes that will be applied to each hamlet at the time of construction and implementation.

Your Council recognizes the significant cost impact this project could have on you. This highlights the urgent need for provincial government grants to ease this financial burden on residents. Without provincial support, providing water and wastewater services sustainably would not be feasible for the County, as it could not simply download all the costs to residents of these Hamlets.

In November 2023, Council met with the Ministers of Environment, Transportation, and Municipal Affairs in Edmonton to urge the Province to reinstate funding programs for water distribution and wastewater collection systems that will make this project feasible. This request was also included in the County’s formal submission to the Province as part of their callout for 2024 Budget Priorities. We have shared all information and findings from the work we have done with the asset management and engineering professionals, as well as the legal counsel, to assist the Province in developing a proactive and comprehensive funding strategy for water distribution and wastewater collection systems.

We are not the only municipality to be facing this issue. Throughout the province, rural and small urban municipalities are dealing with ageing water and wastewater infrastructure and a declining population. The County of St. Paul has invested significantly in finding a practical and feasible solution. Bringing back funding strategies for this type of infrastructure will ensure the sustainability of rural communities for generations to come.