Richard Rolke - Vernon Morning Star Published: March 04, 2010 6:00 PM
Greater Vernon residents can’t avoid higher water bills. North Okanagan Regional District directors unanimously approved an across-the-board nine per cent water rate increase Wednesday. “The reality is we have a $4 million bust,” said director Mike Macnabb of a shortfall facing the utility. “There was an established plan to increase rates and it was artificially held back. Now we have to pay the piper.” Macnabb added that the funds will go towards improved service for customers. “If we compare our rates to other places, they are reasonable.”
Under the new rate formula, 20 cubic metres of consumption will be included in the quarterly base fee at a rate of 92 cents per cubic metre. A new rate specifically for summer (July to September) is also being proposed. It would go from 92 cents per cubic metre to $1.10. “We were told that the increase is needed for the Duteau Creek treatment plant debt and operation of the plant,” said director Doug Dirk. “Also, future capital issues are coming up and the increase is needed because reserves have been exhausted.” Dirk admits that higher rates will hit residents in the wallet. “There may be more people not watering their lawn,” he said. And if that occurs, there could be negative implications for the utility. A reduction in consumption could lead to a drop in revenue which means rates may have to rise even further
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