The Project
In April 2024, the residents of Noroncal submitted a petition with 82 per cent support, to investigate the feasibility and costs of being connected to municipal services for water and wastewater services. In response, Sturgeon County Council authorized a utility servicing study, and Administration hired the engineering firm, Associated Engineering, to explore if this is possible and how much it would cost. The study looked at different ways to connect Noroncal to these services.
When Noroncal was developed as a subdivision in 1971, the developer did not elect to develop utility servicing, likely because existing infrastructure was not within proximity to make recovery of costs economically feasible. The results were shared with residents at a community meeting on November 18, 2024.
Since then, County staff have worked with Associated Engineering and Sturgeon County Council to complete a servicing design report and plan the next steps.
Timeline
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Timeline item 1 - complete
April 2024 -Residents request study
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Timeline item 2 - complete
August 2024 - Engineering firm begins study
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Timeline item 3 - complete
November 2024 - Residents are presented with findings
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Timeline item 4 - complete
January 2025 - Engineering company completes study
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Timeline item 5 - complete
June 2025 -County administration prepares materials
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Timeline item 6 - complete
September 2025 - Webpage launches, the resident letter is distributed
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Timeline item 7 - incomplete
TBD - Residents create package for voting
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Timeline item 8 - incomplete
TBD - Residents inform Sturgeon County results of their vote
Study Purpose
The study was conducted to develop a high-level plan (conceptual design) to determine how water and wastewater servicing could work in Noroncal. Associated Engineering referenced similar past studies, the Sturgeon County General Municipal Servicing Standards, utility master plans, GIS data, and record drawings.
Associated Engineering was tasked with determining a cost-per-lot price that each homeowner would need to pay for each servicing option.
Once the study was done, all the information would be shared with residents so they could make an informed decision and vote by a community led petition on whether to move forward with servicing development through a local improvement levy.
Findings
For water, the study looked at two main options. Associated Engineering recommends Option 2, which uses smaller pipes (75 mm and 100 mm diameter water mains). This option helps keep the water fresh and matches the amount of water the homes require.
For wastewater, the study looked at four options. Most of these options weren’t feasible because they were too difficult or expensive. The only feasible option is Option 4, which is called a low pressure effluent-only force main system. This involves using pumps and tanks at each house.
Cost Estimate to Residents
Current Estimate
• The current estimate was prepared by Sturgeon County's engineering consultant, Associated Engineering. It uses current costing rates that factor in key considerations, including an increase in the price of materials, labour, equipment, and supply.
The current figures are estimates.
Municipal Portion (Levy Funded):
• The cost for both water and wastewater is about $1,825,539
• The cost for just water servicing is $997,705
• The cost for just wastewater servicing is $926,800
Service Connection Portion (Directly Funded by the Property Owner):
• The cost for both water and wastewater is about $1,399,372
• The cost for just water servicing is $379,430
• The cost for just wastewater servicing is $1,096,680
The costs provided do not include the interest portion that property owners will need to pay for the municipal levy-funded portion. As of June 2025, the current interest rates that will be added to the municipal levy-funded portion are:
• 15 Year – 4.10%
• 20 Year – 4.34%
• 25 Year – 4.49%
Adding these rates gives property owners the final expected cost-per-lot for each servicing option with each available amortization period.
Cost Summaries - Broken Down Per Parcel
Local Improvement Debt Servicing Cost
Total Cost - $1,825,539
Number of Parcels - 21
Years | 15 | 20 | 25 |
Interest Rate | 4.10% | 4.34% | 4.49% |
Total Cost of Borrowing | $2,480,117 | $2,768,029 | $3,074,647 |
Annual Payment | $165,341 | $138,401 | $122,986 |
Annual Cost per Parcel | $7,873 | $6,591 | $5,856 |
Total Cost per Parcel | $118,101 | $131,811 | $146,412 |
Municipal Portion – Water Only (with Levy)
Local Improvement Debt Servicing Costs
Total Cost - $997,705
Number of Parcels – 21
Years | 15 | 20 | 25 |
Interest Rate | 4.10% | 4.34% | 4.49% |
Total Cost of Borrowing | $1,355,449 | 1,512,800 | $1,680,375 |
Annual Payment | $90,363 | $75,640 | $67,215 |
Annual Cost per Parcel | $4,303 | $3,602 | $3,201 |
Total Cost per Parcel | $64,545 | $72,038 | $80,018 |
Municipal Portion – Wastewater Only (with Levy)
Local Improvement Debt Servicing Costs
Total Cost - $926,800
Number of Parcels – 21
Years | 15 | 20 | 25 |
Interest Rate | 4.10% | 4.34% | 4.49% |
Total Cost of Borrowing | $1,259,120 | 1,405,289 | $1,560,954 |
Annual Payment | $83,941 | $70,264 | $62,438 |
Annual Cost per Parcel | $3,997 | $3,346 | $2,973 |
Total Cost per Parcel | $59,958 | $66,919 | $74,331 |
Private Connection Costs (Average, Individual Lots Vary)
Option | Total Cost | Average Cost per Lot (22 lots) |
Water & Wastewater | $1,399,372.00 | $63,607.82 |
Water Only | $379,430.00 | $17,246.82 |
Wastewater Only | $1,096,680.00 | $49,849.09 |
Private Connections
Property owners pay this cost (likely up front) directly to connect to the new municipal system.
The Landowner of a particular parcel with water service is responsible for the maintenance, repairs, and cost of the water service line from the parcel curb stop to the water meter fittings and all water service lines located on private property. This includes private connections to the curb stop, the landowner-side portion of the water service line on public property (if the parcel curb stop is located on public property), all water service lines on private property and any pressure reducing valve or meter vault.
Next Steps
The process for initiating a Local Improvement Levy is established under Part 10, Division 7 (Sections 391 – 409) of the Municipal Governance Act.
A Local Improvement Levy is imposed on a specific area within a municipality to fund a service or improvement that benefits that particular area rather than the whole municipality.
Residents can initiate the Local Improvement Levy process. Please see the Local Improvement Levy document available by clicking the button below.
Document Library
FAQs
When Noroncal was developed as a subdivision in 1971, the developer did not elect to develop utility servicing, likely because existing infrastructure was not within proximity to make recovery of costs economically feasible. This was likely reflected in the original price per lot, making Noroncal lots cheaper (accounting for inflation) compared to later subdivisions like Allin Ridge Estates and Crossing at River’s Edge, which included utility servicing and factored those costs into their lot prices.
The community representative will deliver the petition of support to Council. Council will vote to move forward with the project. Following the vote to move forward, a competitive open public tender will occur. This process includes the procurement of a design engineer and the development of a detailed design. The design engineer and the County will develop a detailed design. The detailed design will then be publicly tendered, and a construction company will be hired to build the infrastructure.
This development can only be put forward as a community driven project; in other words, at least two-thirds (66.6 per cent) of property owners in the subdivision must vote in favour of a servicing option for the project to go forward. It is not possible to implement servicing for only a portion of Noroncal.
• Sturgeon County cannot offer an interest free levy. Offering an interest-free levy would require the County itself to directly pay for a portion of the local improvement.
• Sturgeon County will offer the lowest available interest rate (as determined by the County’s lender) at the time the levy is approved.
• To avoid paying interest, property owners have the option to pay the full levy amount upfront.
Determining property taxes
• Residential property assessments in Alberta are market-based, supported by sales of similar properties in their market area. Differences in assessment values between subdivisions can be attributed to actual differences in the types, quality, style, age, and size of the structures and land for each parcel, as well as the desirability the market places on each location. The County's valuation system accounts for these typical differences.
Noroncal comparison to neighbouring subdivisions
• Any notable difference in current assessed value between Noroncal and neighbouring subdivisions like River’s Edge is attributed to differences outlined in the “Determining Property Taxes” response above.
Noroncal’s contribution to subsidizing service in other areas
• Noroncal does not subsidize service in other areas through property taxes. Sturgeon County’s utility infrastructure is rate funded. Only areas that have water and sanitary servicing pay into utility rates to fund the operation, maintenance, and capital replacement of utility infrastructure. Areas that do not have these services do not pay utility rates and therefore do not subsidize areas that do. Property taxes are separate and fund other services not including water and wastewater utilities.
New Projects
• Funding for new utility projects, when infrastructure is installed for the first time, is typically through development activity or local improvement levies. In new developments, the developer pays the cost of developing the utility servicing, either upfront or through an off-site levy, and this cost is factored into the price per lot.
• For existing areas like Noroncal considering new services, the local improvement levy model would be used, where the cost recovery is added to the property tax as a local improvement tax.
Replacement Projects
• Replacement of existing utility systems that have reached their end of design life is funded by Sturgeon County’s utility reserves. The reserves are built from fees collected from each utility customer over the service life of the original system.
Maintenance Projects
• Maintenance of County-owned infrastructure is funded from approved budget line items and/or the utility reserve. Maintenance of property owner-owned infrastructure is funded by the property owner.
Repair Projects
• Repairs for catastrophic failures in County-owned lines are funded through approved budget line items and/or the utility reserve. If a service line fails on the property owner’s side, the property owner must fund the repair.
General Considerations
It is important to note that all utility budgets & spending are funded through utility rates, rather than property taxes, except for the cost recovery of new local improvement levy projects, which are added to property tax. Areas that do not have water and wastewater servicing do not pay utility rates and therefore do not subsidize areas that have these services. Taxes are separate and fund roads and other services not including water and wastewater utilities.
Updates to infrastructure, such as adding servicing, have a positive effect on the assessed value of a property. However, there is typically a delay in the market recognizing the full impact, and the increase in sales value may not be a one-to-one match with the actual cost of adding the service, as it is just one factor among many influencing a buyer's decision.
• Handouts, including a document summarizing the local improvement levy process and a brochure containing information about low pressure sewer systems, were provided at the community meeting.
• This page contains levy information, presentation slides from the open house, a FAQ containing answers to the community’s questions, and the full finalized report from Associated Engineering. The goal is to provide the full Community of Noroncal with all the information needed to make an informed decision.
