Proposed Increases to 2025 Utility Rates
Posted On: Jan 27, 2025
Tags: Featured , Live Here , Your Municipality
Meetings Underway
At the January 22 select finance committee meeting, the committee discussed proposed increases to water and sewer utility rates. The proposed increases would cost the average homeowner an additional $60 annually and are proposed as follows:
- 5 per cent increase in water rates
- 10 per cent increase in sewer rates
The next select finance committee meeting will be held on February 25 at 10 a.m. The public is encouraged to attend and participate in the public input period at end of meeting.
Increased Rates to Cover Increased Costs
The last in-depth utility rate review was conducted in 2018 and set the rates for 2019 to 2023. With the proposed increases above, the average utility user would see an average annual increase from 2019 to 2025 of 3.9 per cent.
Rates have been impacted by the following factors:
- Basic inflationary increases;
- Higher increases in the cost of treatment chemicals and testing (above basic inflation); and
- Increased regulatory requirements to be met, especially for sewage treatment.
To minimize future cost escalations and better project future rates required, district staff are currently working on the following:
- Performing an in-depth utility rate review;
- Testing different treatment chemicals to minimize operating costs;
- Completing a thorough asset management plan; and
- Determining the best course of action at the district’s wastewater (sewage) treatment plant to ensure compliance with provincial regulations in collaboration with Stantec Consulting Ltd. and the Ministry of Environment and Parks.
Future rate increases are anticipated to maintain critical infrastructure, keep up with inflation and meet regulatory demands. Staff and council are working hard to limit the impact on rate payers.
What’s Going Down at the Wastewater (Sewage) Treatment Plant?
The District of Sicamous' Wastewater Treatment Plant (WWTP) is required to be permitted by the province (Ministry of Environment and Parks). The WWTP’s permit is very prescriptive, establishing maximum discharge amounts, characteristics of discharge, etc. At present, the district is having difficulties staying in compliance with the maximum rate of discharge during peak months. In addition, maintaining compliance in phosphorus levels has been an expensive endeavor due to the cost of chemicals and effects on the plant such as excess sludge.
To maintain compliance and have the WWTP’s permit updated, the district must first undergo a tremendous amount of testing in and around the WWTP. Once testing is complete, the province will be able to assess and make changes to the district’s permit. The testing underway could result in upgrades being required for the WWTP. At this time, staff are working with Stantec Consulting Ltd. and the Ministry of Environment and Parks to determine the best path forward. Once more options are available, staff will present recommendations for council to consider. Minimizing the financial impact on taxpayers is top of mind for staff and council.