A typical Kelowna family would pay less for their water this year, but heavy users would see steep increases in their bills under a new rate structure to be considered by council on Monday.The proposed changes are part of an overall attempt to cut the city’s water consumption by 15 per cent over the next five years.“If you’re a responsible, average user of water, you would see a slight reduction in your bill,” said Don Degen, water drainage manager.
It’s believed by water managers that linking rates to consumption helps to encourage conservation.So, under the proposed rate changes, residential property owners who use four times as much water as the typical family would see an increase in their bill of 23 per cent.Those who use five times as much water as the typical family would see a rate hike this year of 36 per cent.Along with encouraging greater conservation, the proposed changes reflect an attempt to move each class of customer — residential, multi-family, commercial and agriculture — to a point where they are paying an amount that more closely reflects the value of the water they consume.
Currently, revenue from all residential customers is about 25 per cent higher than the utility’s actual cost of providing the water.Residents of multi-family projects are undercharged about 16 per cent, while the handful of agricultural properties served by the city’s water utility only pay 12 per cent of the value of the water they use.“We need to bring more balance to overall rate structure,” Degen said.Rates for the agricultural class are proposed to rise most steeply, to $419 per acre in 2011 from $48 per acre currently. There are only a few agricultural properties served by the city’s water utility; most of Kelowna’s orchards and farms are served by other providers, whose rates are not affected by city decisions.Under the proposed rate changes, the total revenue collected by the city’s water utility would rise six per cent in 2007, to $5 million from $4.7 million.
Don Quixote Note: This has marked similiarilities to a pricing system
that I, along with many others, have advocated to Al Cotsworth at the GVSC for years. It is called the inclined block method. (The more you use the more you pay). Perhaps it is time to consider this in the Greater Vernon Region also !) This is a reply that I received from a known expert on water via e-mail last year: (Mr. E. Jackson)
that I, along with many others, have advocated to Al Cotsworth at the GVSC for years. It is called the inclined block method. (The more you use the more you pay). Perhaps it is time to consider this in the Greater Vernon Region also !) This is a reply that I received from a known expert on water via e-mail last year: (Mr. E. Jackson)"You are right on with the inclining block rate and should know that early in the water metering program that I instituted in 1992, we went with an inclining block rate structure but for some unknown reason (political??) it was scrapped in favor of the current rate of a small flat fee and a constant unit rate structure. It is well understood that an incling block rate is the way to go as far as fairness and a conservation program. Why not hit the large users who are usually the wasters, with the highest rate? "
This is the Vernon Rates originallly in 1994:
In 1994 Vernon adopted flat and increasing block rate pricing structures. The prices, listed below, are designed to reward users for efficient use. As use increases, so too do water rates:
(a) up to 40 m3/quarter $33
(b) 41 — 300 m3/quarter $0.34/m3
(c) greater than 300 m3/quarter $0.56/m3
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