Utility rate increase flows out of City Hall

By Tracy Clark - Penticton Western News - January 23, 2008

The increase in utility fees approved by city council Monday has effectively doubled the proposed tax increase for the average homeowner, according to Coun. John Vassilaki. “It’s just getting out of hand,” said Vassilaki, of what he deduced would essentially be a 10 per cent increase for the average home in Penticton. His calculations are based on the utility rate increases that amount to about $75 per homeowner. The rate increases, passed Monday morning with Vassilaki and Coun. Dan Ashton opposed, are in addition to the proposed 4.95 per cent tax hike the average homeowner would pay this year — which on the average assessed value of a home in Penticton would be about $74 per year.But director of corporate services Jack Kler said the difference is that the utility fees are user-pay fees and are not part of the general tax requisition.

The changes include a 10 per cent increase, or about $16 a year for the average user, in the sewer fixture rates and a 15 per cent increase each in the basic water fees and the consumption rate, about $48 more per year for the average user. The water and sewer rate increases are related to the costs of infrastructure improvements and upgrades at the respective plants. In addition, solid waste collection fees will increase by $8 per year and the recycling fees will increase by $3 as the result of a new recycling contract. The online tax and utility account charges are also increasing to $10 — a combination of the previously separate $5 fees that were charged for tax and utility searches. The searches had been provided by the city but are now provided through B.C. Online, which will collect the $10 on behalf of the city along with its own $5 administration fee. The manual tax search fees are also increasing to $30, from $20, as the city hopes to encourage more people to use the online option.

Because most of these charges are based on services provided, residents have some control over how much they are affected, said Kler. For example, he said, as the city promotes water conservation residents who use more will pay more. Reducing consumption will also reduce the water bill, he said. But Vassilaki, who calculated his own water bill based on his consumption, said very few homeowners simply use the minimum water consumption level. Most people use more than the basic amount and therefore are being impacted by increases “year, after year, after year.”Since 2005, water rates have gone up 40 per cent, pointed out Coun. Dan Ashton. “And that’s a substantial increase,” he said. But Coun. Rory McIvor said the increases are for essential services he described as the “heart and soul” of the community.

“Not to go with these increases would be pure folly indeed,” he said, adding “I will certainly not worship at the shrine of tax cuts so it will make me look good.” But Ashton said his concerns have nothing to do with gaining favour.“I am not here to look good,” he said. “I was elected to be fiscally responsible. I am not asking for a tax cut, I am asking for a reasonable tax increase.”
Coun. Randy Manuel said while he is not in favour of tax increases generally, the aging infrastructure needs attention now and waiting will only increase costs to taxpayers in the future. Let’s bite the bullet, let’s get on with it,” he said.