Saturday, January 08, 2011

Water rates could soar

Richard Rolke - Vernon Morning Star Published: January 08, 2011 12:00 PM
Water bills could be overflowing throughout the North Okanagan.  The North Okanagan Regional District is poised to hike rates for a number of water utilities, including Greater Vernon, Grindrod, Whitevale, Mabel Lake and Silver Star.  In Greater Vernon, a tiered system based on consumption could range from a 23.6 per cent hike for low users to 74.5 per cent for medium users and 103 per cent for high users.  “The numbers look scary but the committee must have that discussion still,” said Wayne Lippert, Greater Vernon Advisory Committee chairperson.  “Staff has put out numbers but we can’t say yet where rates will go.”  Lippert suggests some form of increase is necessary to keep the utility operating.  “We put on the new Duteau Creek treatment plant and the operational costs are significantly higher,” he said.  Director Gyula Kiss believes higher rates could have repercussions for politicians. “It’s an election year so it could be potentially problematic,” he said.  “People on marginal income will be hard hit. Water is becoming out of reach.”  That is also a concern for director Patrick Nicol. “Who will be hit the hardest is the family,” said Nicol.  Instead of using user fees to build up reserves for future infrastructure, Kiss says referendums should be held to borrow the needed money for such upgrades in Greater Vernon.  “If we do that, people using the service at the time will pay for it. You don’t pay in advance for something you may never use,” he said.  Domestic water fees could climb by about 82 per cent in Grindrod, while it could be 20 per cent in Whitevale, 10 per cent at Mabel Lake and 35 per cent at Silver Star.  “We’re trying to increase rates to anticipate the new Interior Health regulations coming in,” said Rick Fairbairn, Electoral Area Advisory Committee chairperson.  “It has to do with the quality of water and monitoring. We need to upgrade the existing systems so we can comply with the regulations.”  Fairbairn admits that such large rate hikes could be financially onerous on residents of small, rural communities. “We’re in a dilemma. We’re asking staff to be as prudent as possible,” said Fairbairn of balancing the impact on ratepayers while maintaining operations.

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