The city’s committee-of-the-whole endorsed staff recommendations to increase the waste collection fee by $16.50 to $84.25 per year, and also to increase both the metered and unmetered water rates. Final rates will be decided at the next meeting of council on March 14.
Unmetered water rates are recommended to increase by $30, to $387 per year.
The metered rates will also be raised, with a base charge of $210 added to $0.52 per cubic meter for the first 30 cubic meters each month (up from $0.20), $0.60 for 30 to 100 cubic meters per month (up from $0.35), and $0.75 for volumes above100 cubic meters per month (up from from $0.60).
At the heart of the issue is a balance between incentives to get owners to install water meters this year, pricing to encourage water conservation, and ensuring that the utility earns enough revenue to keep it afloat.
CAO Victor Kumar explained that the majority of the utility’s costs are fixed and very few are variable.
But, to give people an understanding of the value of water and inspire them to conserve it, it helps to charge a rate that depends at least partly on the amount used.
On the other hand, a base “consumer charge” reflects the fact that many of the costs are fixed.
At current rates, Kumar said, there has been a cost benefit to most people who already installed water meters. If everybody installed meters this year and began conservation measures at these rates, however, the utility would sink into debt.
Under the recommended rate structure, people who install meters this year will still receive a lower water bill so long as they use less than 30 cubic meters of water per month.
As Mayor Granstrom pointed out, “that’s a lot of water,” the equivalent of 260 U.S. gallons per day.
Coun. Laurie Charlton objected to the rate hike and claimed that water is already overpriced, but the rest of council agreed with Coun. Kathy Moore who said, “I think it’s an expensive commodity and ought to be priced accordingly.”
Coun. Kathy Wallace noted that it’s difficult to find an “equitable pay structure,” and Kumar concurred that “this is a transition year,” noting that “not enough data exists to make a complete picture.”
Moore was not satisfied, however, that the recommended rate scheme contained enough incentive for people to install meters and recommended the unmetered rate be increased to $450.
“$30 is not enough,” she said, “It’s been two years that they’ve known.”
Coun. Hanne Smith argued that the lower values were preferable for now, but suggested that council inform the public that the next council will likely consider a large hike in the unmetered rate for 2012.
On the topic of waste collection, council agreed it was necessary to increase the yearly fee to help cover the spring and fall garden waste pick-ups.
This raised the perennial issue of composting.
“We have to get the organics out of the landfill,” Wallace said.
“How are we going to address this? I think the community wants this.”
Charlton noted that, although “composting is a worthy objective, the city can’t do it on it’s own. [Legally], we have to work in conjunction with the regional district.”