Sunday, September 25, 2011

Vernon water rates make the grade

A survey indicates Greater Vernon residents are not being soaked for water.  The Regional District of
North Okanagan has compared Greater Vernon’s domestic water rates with other Thompson-Okanagan jurisdictions.  “We don’t have the most expensive water in the valley,” said Al Cotsworth, utilities  manager. “Last year, we were the 17th highest out of 22 billing areas and this year we’re 15th.” The maximum annual cost within the surveyed jurisdictions was a flat fee of $834 (Naramata) and the minimum was a metered fee of $255 (Lakeview Irrigation in West Kelowna). Greater Vernon’s price was a metered $572.  Director Doug Dirk doesn’t believe the survey results should be used to determine fees.  “I’d use our need and projections to set rates,” he said.  Dirk believes other factors that could impact rates are infrastructure upgrades and the possible legal case over contamination of the Antwerp Springs well.  “How are we going to apply that? Are we just going to jack the per metre rate up or do we consider other options?” he said.  Director Mike Gavinchuk isn’t convinced the cost of water matters to some residents.  “If he (customer) wants to pour water on his lawn or shower six times a day, he’s going to pay,” said Gavinchuk.  RDNO staff have received some recent complaints over rates. “During the boil water advisory (on Kalamalka Lake), people were saying, ‘Why are we paying so much when we can’t drink it?’ Some wanted a rebate,” said Cotsworth.  Wayne Lippert, Greater Vernon Advisory Committee chairperson, says the survey is somewhat irrelevant because it does not reflect circumstances in each community that may impact water rates. “Look at Naramata. Court action there threw rates out of whack,” he said.  “It’s nice to see where we are with other communities but we’re a non-profit organization. We’re not here to make a profit. We’re here to provide a service.”
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Don Quixote Note:
  • Actually Greater Vernon is the 17th highest not the 15th highest out of 23. 
  • Kelowna's rate was lowered to actual as it bills monthly not quarterly. 
  • In Naramata the big change is the Capital Charge – separating domestic & agr.; irrigation lines $131 per parcel. This has increased rate from a flat fee of $704 to $834. http://www.rdosmaps.bc.ca/min_bylaws/bylaws/engineering/2011/BL2523_04.pdf    - http://www.mynaramata.com/show425a21s0x80y1z/Cutting_Farm_Water_Rates_
  • Director Dirk is correct in saying these survey rates do not determine Vernon water costs and the resultant rates that must be charged to cover costs. They are an indication of the different methods of charging. (flat rate, parcel taxes, incline block rates etc.)
  • District of Summerland ($694.32) has a $285.00 parcel tax which was imposed in 2006 ($185) and increased by( $100 ) to cover the debt servicing costs for the capital improvements. These debt issues seem to have a 20 year term. Summerland uses parcel taxes for Capital Costs and a flat rate for operating costs.
  • [PDF]TOWN OF OLIVER BYLAW 1284 A Bylaw to Amend Domestic Water ...   A metered customer would pay a base fee of $125.00 annually, a meter Charge of $185.50 (350m3 @ .53) and a Parcel Tax of 110.  Total $420.50 not $633.50 as per GVS Survey. An un-metered customer would pay a Flat Fee of $338 and a Parcel tax of $110. Total $448. (That would make Greater Vernon #18 highest)

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