Group to focus on water rates

 

By Richard Rolke - Vernon Morning Star  Published: February 05, 2011 12:00 PM

The contentious issue of water rates will undergo specific scrutiny by Greater Vernon politicians.
It has been decided that the Greater Vernon Advisory Committee will hold special meetings that deal specifically with establishing future water rates.  “We never seem to have time to look at rates ahead of time,” said director Jim Garlick of the present budget process. “Instead of having it dumped on a table next December, let’s start on it now.”  Garlick also believes that tackling the issue early would allow directors to consult with their municipal councils. “We could use these months leading up to the fall to get work done so we have a better understanding of rates,” he said.  Coldstream council had suggested that a water utility cost recovery committee be formed, but some directors were reluctant to establish another group. “That’s what this committee is for,” said chairperson Wayne Lippert of GVAC. “It’s just a matter of setting up the time for extra meeting dates. That’s what we were elected for and it’s something we can handle.”  Garlick supports discussions remaining at the main GVAC table as long as water rates are the only item on the agenda.  “We need to stay focused that the topic is water rates,” he said. “When it’s this group, other things get thrown in as well.”

GVAC has proposed to increase 2011 water utility rates for all categories, including 20 per cent for the average single-family residential home.  The quarterly residential base fee could go from $50.15 to $66.20. If the rate is ratified by the North Okanagan Regional District, the average residential bill will go from $480.58 to $579.70 a year.  It’s expected the 2011 rates will be before the committee for discussion in two weeks.  “We’d like to bring back final numbers and complete numbers,” said Arnold Badke, general manager of engineering.
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Don Quixote Note: The table above left shows the 3 different proposals that have been brought to the table for debate. Check out the effect on the different consumers of water as the base rate was lowered and then raised and the incline blocks were changed both as to entry points as well as price/m3. The last column are the rates approved to date and the right table isolates them for comparison between 2010 rates and approved proposed rates.


Hopefully the staff will be bringing back a new rate proposal:

• that correctly calculates the amount needed in 2011 that must be covered by user rates. ( There are 6 projects in the $2,030,000 Capital Sustaining (Non MWP) line 3.4 and they total $652,500 worth of DCC’s.  Thus the correct figure for line 3.4 is $1,777,500. (The subtotal costs of $14,225,298 is reduced now to  $13,572,798 and this is the revenue figure that we must built our water rates calculator to cover.
• Reevaluate and change Commercial rate  charges. Presently base rate increase to $66.20/quarter but a consumption charge decease from 92 cents/m3 in 2010 to 90 cents in 2011.
• Change block steps to establish starting level for step 1.