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The story does not say what the $2.8M share from West Bench residents covers. In the 2007 AE report, the West Bench portion of the capital cost was only $1.52M. So this represents a pretty hefty increase if the $2.8M referred to in the story is only capital cost. The other major cost in the 2007 AE report was the City of Penticton's operating charge (basically, its average cost of operating its water treatment plant). This number dwarfed the capital cost, which is a large reason why we still have no resolution to this issue.

I have done some back-of-the envelope calculations below based on the new numbers (and using some rough guesses from the AE report). Much depends on the operating costs that the City of Penticton decides to charge West Bench residents. As shown below, it could be quite ugly. Please keep in mind, all these costs are in addition to West Bench's existing debt servicing costs.


West Bench share of capital cost  $  2,800,000  
Term 20 years
Interest rate 6%  
Annual debt and principal $244,117  
Number of West Bench households 351  
Average capital cost per household $695  
Estimated service fee (2007 AE report)  $  250,000 these are subject to negotiation
Depreciation fee (2007 AE report)  $  100,000
Total City of Penticton charges  $  350,000
Average operating cost per household  $  997
Total estimated capital and operation cost $1,692 per household


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