The Regional District of North Okanagan - Greater Vernon Advisory Committee (GVAC) has undertaken a preliminary review of Increasing Block Water Rates. This is a system where there is an escalating charge for increasing amounts of water consumption in each of the four quarters in a year. Increasing Block Water Rates encourage water conservation because those customers using larger amounts of water pay more. The GVAC has also recommended that the quarterly Base Fee be increased from $50.17 per quarter in 2010 to $66.20 per quarter for 2011. For 2011, it is proposed that the quarterly Base Fee shall not include the initial consumption of 20 cubic metres of water as was the case in 2010. The implementation of higher Base Water Rates is to ensure an adequate fixed income to operate the water utility. The fixed costs to operate the utility are in the order of 80% of the total operating costs, therefore an increase to the fixed revenue will enable more effective operation of the water utility. Commercial and industrial users will see similar increases while agricultural rates are proposed to increase 5%. The Board of Directors for the Regional District of North Okanagan will be considering these recommendations in their budget deliberations which must be completed by March 31, 2011.
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