Asset Renewal

Your 2024 Notice of Tax Levy will show a levy called Asset Renewal. It is included in your Tax Notice every year, and is subject to change. 

Asset Renewal is being collected to increase SSID’s reserves. At present, the amount in reserves is not enough to maintain the waterworks infrastructure as the parts age and need replacement.

SSID’s infrastructure is more than 50 years old. It is comprised of 16,000 feet (4,900 metres) of pipes, 2 wells, 2 pumps, 2 generators, 2 reservoirs totalling 50,000 imperial gallons of water, 5 outbuildings and a steel tower, 2 pump meters and 167 household meters, 13 hydrants, 13 hose cabinets, 4 pipe-end blowoffs, 17 gate valves and 3 air release valves. In 2019 and 2020, we replaced 10 old water meters, with funding from the reserves. In 2020, we replaced 1 of our 2 diesel generators. In 2022, we replaced 2 hydrants, and will replace 2 in 2024, as well as the 3 air release valves.

Over time, the infrastructure will cost about $7 million to replace. Most of that is in pipes at about $5 million, which fortunately are expected to last for another 60 years.

The reserves may also be used for unforeseen events, as in 2009, when $100,000 was used to fix the broken 40,000-gallon water tank, and for protective measures, as in 2012 when SSID bought a backup generator, well, and pump.

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Waterworth is the online asset management software SSID uses, with guidance from an Asset Management Consultant. The financial model below includes updates at January 1 2024.

The green peaks are capital costs, with the largest peak in 2047 representing not a purchase, but rather the replacement cost for the water tanks and pipes by that year, so that we continue saving for eventual replacement. The other large peaks are the re-coating of the interior of the water tanks in 2038, and the replacement of aging buildings before then.

The orange bars represent tax income. The blue bars represent operating expenses. And the black line shows the cash position, which must increase to cover the expenditures as needed.