Thursday, March 18, 2010

Frustration erupts over water rates

Richard Rolke - Vernon Morning Star Published: March 18, 2010 6:00 PM

Politicians are being accused of reneging on a promise by increasing water rates for farmers. The North Okanagan Regional District board adopted its 2010 budget Thursday, including an across-the-board nine per cent rate hike for Greater Vernon water customers, including agricultural users. “Agriculture got screwed,” said Ted Osborn, the industry’s representative on water issues, after observing the vote from the public gallery. While upset with the actions of Vernon officials, much of Osborn’s frustration is directed towards politicians from largely farming communities. “Areas B, C and Coldstream went along with it. It leaves a very bad taste,” he said. Osborn insists the rate hike goes against previous promises made to agricultural customers. “They disregarded the principles of the master water plan that agriculture wouldn’t pay for water quality improvements,” he said, adding that the focus of the rate hike will benefit residential users while farmers only require water pressure and supply. The primary reason for the higher levy is to pay for the new Duteau Creek treatment plant debt and operation of the facility. The average flat rate for an agricultural customer is $212 per hectare a year. The nine per cent increase will raise that by $19 per hectare annually. “We’re in a competitive market and must ensure our costs are in line,” said Osborn.“This arbitrary decision is unwarranted.”

Wayne Lippert, Vernon director, stands by the nine per cent rate increase for all customers. “In 2006, the budget was overturned because of water rates and we were set back (in generating revenue),” he said. “Rates were held down and the difference came out of reserves. Now we have to pay that back and catch up.” Lippert also insists the needs of agricultural users are a priority, with irrigation water eventually being separated from domestic water. “Twinning is going on and we’re trying to achieve a good agricultural rate so they can be competitive,” he said. Mike Macnabb, BX-Silver Star director, defends his support for the new fee structure. “That increase is necessary. It’s equitable in that everyone gets hit the same amount,” he said.

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