Monday, November 22, 2010

NEW Sewer Rate Strucure for Coldstream ??


Coldstream Council Meeting, November 22, 2010 - 6 PM  Click Image to enlarge.

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Don Quixote Note: (Vernon)

I used 64 Cu. Meters of water in first quarter and my Quarterly Sewer Bill is:

Base Sewer Charge $48.98 + 2.45M3 on 44 M3 (64-20) = $107.80.  Total 156.78 per quarter for Sewer.


In Coldstream under option 1b I would pay $80.10 + 1.74*64 M3 =111.36.  Total $191.46

Option 2 B I would pay $74.20 + 3.28*(64-15 =49 M3) =160.72  Total $234.92

2 comments:

Coldstreamer said...

Here are some facts:

Total requisition by the Finance Director is $1,462,512 to cover expenses. $300,000 of that is for amortization.

Council decided to fund only 50% of the amortization. This 50% with a small access fee would be the base fee of $25 per quarter ($100 per year) in Option 2. There are 2,100 connections yielding $210,000. There were some incidental income that brought down the ultimate requisition to roughly $1,100,000.

Total estimated sewage is 330,000, thus the final actual cost per cubic meter of sewage is $3.28 per cu m.

In order to ensure that absentee customers also contribute 15 cu m of mandatory contribution was proposed in Option 2 for a total of $49.20. Add the 25 base fee and you arrive at the base rate of $74.20. Anyone using 15 cu m or less per quarter pays no additional charges. Any additional sewage contribution is charged at $3.28. For instance a family of two with average water consumption (5 cu m per person per month) would pay $123.40 per quarter, family of 3 $172.60. The more you use the more you pay.

This system parallels the City's system. The only differences are the $25 base fee and the unit cost of sewage due to differences in costs. If the City considers amortization fees in the future they might consider it as a flat fee portion of the fee structure. After all, amortization is for infrastructure replacement.

Without being able to measure actual sewage input from each household this is the fee structure that is the fairest. Each cu m of sewage is charged at $3.28.

Your 64 cu m contribution under option 2 would actually cost you $209.92 in Coldstream.

The problem with Option 1 is that it is a two-tier system with a high tax component. The $80.10 fixed fee buys you nothing, you pay an extra $1.74 for each cu m you use. The first 120,000 cu m of sewage would cost each household $3.48. The base fee was calculated by using "fixed costs" (administrative costs, hydro, etc) and adding the cost of 15 cu m sewage at $1.74 per cu m to arrive at the $80.10. However the 15 cu m is not credited to the customer unless he pays an additional $1.74 for it. All additional cubic meters are charged out at a bargain $1.74. It discriminates against low users and does not discourage abuses. Absentee users only pay $1.74 for the mandatory 15 cu m embedded in the base fee.

Now you know!

Coldstreamer said...

Sorry, you are right. $234.92 it is.