Water rate debate boils over

By Richard Rolke - Vernon Morning Star Published: April 07, 2013 1:00 AM
Officials hope to bring some rationale to the cost of water.  Greater Vernon Advisory Committee members met Thursday to discuss a future structure for residential, commercial and industrial water users. “We’re setting up the philosophy and how we establish them,” said Mike Macnabb, chairperson. Revenue is required for the master water plan, which could include $100 million in infrastructure. Staff suggested that shifting more burden on to business customers could negatively impact economic development, but director Bob Spiers disagrees. “The cost of water doesn’t add much of an increase to a product,” he said. “I don’t think we will drive any business away because of it.” Spiers is also frustrated that it was initially believed 2013 rates could climb three per cent, but  they could be higher because low users will now starting paying for water, even under 20 cubic metres. “Mine has gone up 15 per cent,” he said.  “We left here and everyone thought it was three per cent. Did everyone know what they were voting for?” Directors have instructed staff to present a water rates calculator on each category when rates change in the future. “We need something that shows what the increases are, what they are actually going to pay,” said director Bob Fleming. Director Gyula Kiss would like to see revenue generation shift from user fees to taxation. “With water rates, you always have to guess how much (money) you need,” he said. “If people reduce water, revenue is less so you have to increase rates.”
-------
Don Quixote Note: The big change in the Residential Rates for 2013 is although there is only a 3.05% increase in your base fee or access fee there are new consumption charges for the first 20m3 of water unlike in 2012 where there was NO charge at these levels. Effectively this change alone has added $14 per quarter ($56 Annually) to ALL users who consume 20m3 or more per quarter.

Both the Residential and the Commercial/Industrial customers see the same base rate change on their quarterly water bill. (From $78.12 to $80.25 per quarter- a 3.05% increase. The consumption rate for Commercial/Industrial customers has increased from $1.09/m3 to $1.15 m3 (a 5.5%) increase. However this is the maximum charge per m3 and remains at this level. There is no inclined block consumption fee in this category. A residential customer hits the $1.25/m3 level at the 41 to 80 m3 mark. Then every m3 above 80m3 is paid for at the rate of 1.80m3.  The same water but rather different pricing!