Posted on 12/11/2015 by Pete McIntyre 107.5 KISSFM
Local politicians continue to debate water rates in Greater Vernon -- and if there's a better way to charge the fees. Greater Vernon Advisory Committee director Gyula Kiss of Coldstream has outlined an alternative rate structure which would see all users pay the same amount per cubic meter. The current rates are tiered depending on how much is used, and different for the various categories such as residential, commercial, industrial and agricultre. Kiss says his system would allow low water users -- or those that try to conserve -- to benefit more. He says the amount of revenue generated would be the same, but the amounts the various users would pay, would change. Kiss says under the current system where everyone pays a base fee, the customers using the least, are subsidizing the rest. Director Akbal Mund has concerns about Kiss's proposal. "Gyula's proposal is to charge everybody the same rate. What would that do for agriculture? They use lots of water. Is that fair all of a sudden, to say now you're paying the same rate as everyone else? I don't think so," says Mund. Mund says that could lead to consumers having to pay more for fruits and vegetables, as the farmers and businesses pass on the costs. "When a business incurs costs, where do that go? It goes to the consumer, so who is that going to benefit?" Regional district staff will be looking over Kiss's proposal and providing a response at an upcoming GVAC meeting. Kiss has at least one supporter in Vernon director Bob Spiers. "Whether it's for watering lawns, washing cars, or making beer (Okanagan Spring Brewery is a major water customer), water should cost the same," Speirs told his committee colleagues.
1 comment:
"What would that do for agriculture?"
The proposal is for domestic customer rates. Agricultural rates will be debated separately. In fact, the agricultural
contribution ($761,8493 per year)as well as incidental revenues ($692,000)and debt obligations ($2,893,074) are removed from the budget and treated separately.
"When a business incurs costs, where do that go? It goes to the consumer, so who is that going to benefit?"
Actually, it goes to business expenses and income tax rebate and those consumers who use the services of the business might assume part of the expense. As for who benefits? It is the owners and customers of the utility: you and I. We pay for the utility and provide the product (water) to everyone. It is only fair that nobody is getting subsidized.
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