Greater Vernon’s water rates structure has been reversed and that has some politicians boiling. Instead of adopting a recommended rates structure from the Greater Vernon Advisory Committee, the Regional District of North Okanagan board voted to change the terms of the bylaw. “The spread between residential and commercial customers becomes larger,” said Akbal Mund, who, along with director Bob Spiers, opposed adoption. “There are more residential costumers than commercial so we are penalizing residential.” The rate changes adopted Wednesday include:
Domestic use from 40 to 80 cubic metres — $1.59 to $1.58
Domestic use of more than 80 cubic metres — $2.32 to $2.37
Non-domestic — $1.67 to $1.58
GVAC had recently gone against a staff report on rates and that was a mistake, says director Bob Fleming, who also sits at GVAC. “The staff proposal was well thought out and was created to keep the changes to an overall minimum, a two per cent increase to rates,” he said. However, Fleming says members of GVAC amended the staff proposal. “We didn’t have time to consider the implications. The main result is higher water users pay substantially more — nine to 10 per cent. It skewed things,” he said. As a result, Fleming introduced a motion Wednesday to amend the GVAC recommendation to reflect the original staff proposal. Only Greater Vernon directors voted on the motion Wednesday. Mund denies the GVAC recommendation was based on a lack of details. “The information is there,” he said. Spiers insists there shouldn’t be a difference between how residential, commercial and industrial water users are treated. “With a drop of potable water, you should pay the same,” adding that a residential customer using more than 80 cubic metres will see the cost climb eight per cent. “You want to talk about rate shock, that’s what you got.” A process will begin in May to review rates. “We need the context and the implications. Rates may go up and they may go down but there needs to be a discussion,” said director Mike Macnabb.
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Don Quixote Note:
- The change at GVAC was to maintain the spread between the non Domestic Rate of 1.53 (in 2015) and 2.19 Residential above 80m3 rate (2015 Rate) which is 66 cents lower for non Domestic Customers. (Business,Institutional and Industrial.)
- The rate change as originally passed by GVAC maintained this difference at a 1.67 vs 2.32 = 65 cents. )
- The rate change as revised at RDNO increased this difference at a 1.58 vs 2.37 = 79 cents
At the Special May Rates meetings GVAC will have to discuss the direction of this difference and how fast to equalize the NON Domestic and the Residential Rates. Agricultural rates will also be a source of discussion.
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| "Wait until May" |
Below are calculators updated with new RDNO approved rates that you can use to determine the effect on your water account.
Simply place your average quarterly number of m3 of water consumption in the yellow box to see how this 2% rates increase will affect you. If you wish you can put in your quarterly consumption for the last 4 quarters and total the amount. Because of the quarterly variances this amount will be slightly higher than the average result. In my case my average quarterly consumption is 35.25 m3 in 2015 and my total bill for 2016 (assuming same consumption) will be $25.43 lower. It is $23.51 lower when I use the different quarters rate method.
https://docs.google.com/spreadsheets/d/1Pr6mQbkFiySvj8rXw8XoewZ6dQ-wt9-1_YRrgFFH_G4/edit#gid=0 Residential Calculator:
https://docs.google.com/spreadsheets/d/1maInmT6PxQz2IcSpNpQhPAf461HaIjQ2dN6xx0w57dk/edit#gid=0 ICI (business Calculator)
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