Water and sewer rates for Castlegar residents are going up in 2025.
Water rates will increase by 5.6 percent, resulting in an annual increase of $24, bringing the total annual cost to about $460. Residents who use more than the allotted 30 cubic metres of water per month will continue to pay extra for the additional usage.
Commercial water rates will increase by $69 for an annual bill of $1304.
Sewer rates will see a larger increase due to the utility being in a weaker financial condition than the water utility. Annual rates will increase by 10.6 per cent, or $49, for residential properties for an annual bill of $506.
Commercial sewer rates will increase by $124 with a total annual cost of $1290.
The major influencing factors of the increased rates include the annual municipal price index (MPI) and the need for capital reserves for future projects.
The MPI calculates inflation specific to an individual community. Keeping up with the MPI maintains a municipality's purchasing power across major expenditure categories. It differs from the Consumer Price Index (CPI) which focuses on the cost of household items by focusing on expenses related to the things municipalities purchase.
Major project expenses in the sewer category include a new vacuum truck, North Lagoon UV disinfection infrastructure, North Train biological reactor renewal at the South Sewage Treatment Plant, geotubes for biosolid management and a new in-depth liquid waste management plan.
While a 10.6-per-cent increase sounds huge, Castlegar CAO Chris Barlow said each one-percent increase only yields $17,000 in new revenue.
The water and sewer rate bylaw is scheduled for final adoption at the Dec. 2 city council meeting.
