Castlegar’s deputy director of finance Lois Hunter made a presentation to council at Monday night’s meeting highlighting the proposed methods and rate structure for the city’s switch to metered billing for city water and sewer services.
Hunter stated that the average user, using the average amount of water, can expect to pay about the same as they are now.
The move to metered water billing has been more than 10 years in the making. In 2005 the city learned that Castlegar exceeded Canadian and B.C. averages for water consumption, this was followed by a pilot project to test the effectiveness of meters in reducing consumption rates.
In 2008 a water management plan was adopted, calling for universal metering according to industry best practices. Installation of meters for residential and industrial, commercial and institutional customers began in 2009.
In 2012 a water-smart action plan was developed.
Data from the water meters were gathered in 2016 and the city began looking at industry best practices, case studies and potential user-pay rate structures. That information was presented at an open house and public feedback was gathered.
That brings us to today and the next steps of the process which will include communication and consultation with customers including a survey which will run from Oct. 15 to Nov. 6. A public open house is scheduled for Nov. 1 followed by stakeholder meetings Nov. 2. Consultation outcomes will be reported to the council by mid-November and the second presentation to the council will take place on Nov. 20. If all goes according to schedule, the first metered rate bylaw reading should take place in December.
According to documents included in the Oct. 2 council package, the rate review included consideration for aging infrastructure, water conservation measures, increased commodity prices and operational costs, increasingly stringent treatment regulations and inflation. It also looked at lessons learned from other communities, increasing climate variability and evolving customer expectations.
The same documents state that council is committed to: “Ensuring financial stability in water/sewer operations, encouraging water conservation, ensuring fair rates for all user groups, reducing peak demand to extend infrastructure lifespans and providing enough reserves in future for upgrades.”
Water rate breakdown
All single family residential (SFR) customers would have a flat rate plus a charge for consumption over the city average of 30 cubic metres per month. The city suggests that for most residents this threshold will only be met during the summer months.
Flat rates will be stable for the next three years.
The flat rate for water is $419.28 annually, the new proposed rate is $360. The consumption rate would be $0.68/c/m for usage over 30/cu/m per month.
Multi-family rates
Multi-family (MF) users would have a flat rate plus a charge for consumption. This is the same structure that exists now. A gap in fairness has been identified between SFR and MF rates so an increase would be seen if the plan goes through as it stands.
MF users typically use 20 per cent less than single-family residential (SFR), therefore MF rates would be set at 20 per cent less than SFR rates.
Rates would be phased in over three years.
The flat rate for water is $84 annually plus a consumption rate. The proposed rate is $192 for year one, $228 for year two and $276 for year three. The consumption rate is $0.38/cu/m for all flows, the new structure would be $0.48/c/m for all flows.
ICI rates
New rates would gradually eliminate the cost-for-service gap between residential and industrial commercial and institutional (ICI) users.
All metered ICI customers would have a flat rate plus a charge for consumption.
Rates would be phased in over three years.
ICI customers have the option of installing meters, and some businesses have had them for a lot longer than the current meter program. Castlegar’s CAO Chris Barlow explained that non-metered ICI rates vary widely based on sub-classifications in the current bylaw. He stated that most ICI customers would actually see a reduction in their bills if they voluntarily switched to metered billing.
The flat rate for metered water is $152 annually plus a consumption rate, the proposed rate is $252 for year one, $288 for year two and $324 for year three. The consumption rate is $0.38/cu/m for all flows, the new structure would be $0.48/c/m for all flows.
Water rates without metres
SFR and ICI customers who do not have meters will be paying their 2017 annual charge plus an extra 10 per cent. MF customers will just be paying the amount of their 2017 annual charge.
Metered sewer rate breakdown
SFR customers are paying $340.92 annually, the new plan will be $288 plus $0.38/cu/m — capped at 30/cu/m from May to September.
MFR customers pay $84 annually plus $0.38/cu/m for all flows. The new plan will see rates of $144 in year one, $168 in year two, and $192 in year three plus $0.38/cu/m — capped at 30/cu/m from May to September.
ICI customers now pay $152 annually plus $0.38/cu/m for all flows. The new plan will see rates of $288 in year one, $366 in year two, and $384 in year three plus $0.44/cu/m, but with a 10 per cent discount May to September.
SFR and ICI customers without meters will be paying their 2017 annual charge plus an extra 10 per cent. MF customers will be paying the amount of their 2017 annual charge.
The cap on sewer use charges for May to September is in response to concerns raised at the last public session that residents thought it was unfair to pay for sewer charges on water being primarily used in those months for outdoor use.
What is one cubic meter of water?
One cubic meter of water is the equivalent of running a hose for two hours, 10 baths, 10 washing machine loads, 100 toilet flushes, 30 showers or 4,000 cups of tea. So for SFR customers who have reached their 30 cu/m limit, those tasks will cost you $1.06 for the combined water and sewer use.
Hunter explained that after analyzing usage data, most overages can be chalked up to outdoor water usage, and can, therefore, be controlled by the customer who wants to keep their water bill down.