FORT ASSINIBOINE — Woodlands County residents will see a small increase in their water and sewer rates a month from now and then a higher increase in the new year as the county strives to recover more of its costs and put aside cash for three major capital projects, two of which are in Fort Assiniboine, that are needed over the next decade.
Woodlands County councillors passed all three readings on the new water and sewage rate bylaw during their July 19 meeting.
Starting Sept. 1, 2023, the flat fee for water and sewer will increase from $20 to $25 per month, while the residential rate for consumption will increase from $1.50 per cubic metre to $2 per cubic metre.
The commercial rate for water and sewer will also increase from $1.50 per cubic metre to $2.05.
Then, on Jan. 1, 2024, the flat fee will increase from $25 to $30. As well, the residential consumption fee will increase to $2.15 per cubic metre, while the commercial consumption fee will jump to $2.25 per cubic metre.
Another $5 will be added to the flat fee at the start of 2025 and 2026, bringing the total of $40.
At the same time, the residential consumption fee will also increase to $2.30 and $2.45 per cubic metre, while the commercial consumption fee will go up to $2.40 and $2.55 per cubic metre.
Bulk water fees will also increase from $7 to $8 on Sept. 1 and will continue to go up by $1 at the start of 2024, 2025 and 2026.
Agriculture fill fees will be $3 on Sept. 1 and increase by 50 cents over the following three years.
Rates discussion
Although council passed the bylaw at the July 19 meeting, discussion around the new rates actually occurred during the July 12 governance and priorities committee meeting.
Director of corporate services Victoria Chan said council originally adopted the previous water and sewer bylaw on Sept. 3, 2019. It was due for a review as the county was still using the rate established on Jan. 1, 2022.
Chan said that from 2022, the number of residential accounts in Woodlands County varied from 251 in 2020 to 243 in 2020, while the number of commercial users remained fair static, going from 19 in 2020 to 18 in 2022. Non-profit users increased from seven to eight over that time period.
Chan said their system operates on a principal of “full cost recovery,” meaning that the users pay for all the expenses associated with the system.
However, because they do not have the same scale of users as other communities, their water and sewer system operates at a substantial deficit, which reached $1.381 million in 2022.
“We are not on a full cost recovery,” she said. “As a matter of fact, we have a 17 to 18 per cent cost recovery rate.”
The water and sewer deficit is funded through the county’s general revenue. Getting to full cost recovery would mean substantially higher water and sewer bills for residents, however, so Chan suggested their goal should be to merely get closer to cost recovery.
Another factor that must be considered is the life cycle of the system’s infrastructure, as some parts were installed five to six decades ago.
“It doesn’t mean they have to be replaced right now, but it’s something we should have more conversation (around),” she said.
In fact, the county has identified three major capital projects that must be carried out over the next decade.
The first is a sanitary line replacement, which will have to take place around 2026 to 2027; it is currently estimated to cost $1 million, but that amount will likely increase to $1.6 million by 2026.
By 2031, an addition to the airport water line loop must also be completed. That would cost $1.5 million today, but that amount will likely increase to $2.6 million over the next seven to eight years.
Finally, a water line replacement must be carried out at Fort Assiniboine by 2033. That is estimated to cost $2.5 million today and is expected to increase to $5 million by 2033.
In short, the county has $9.2 million in capital projects lined up, and to avoid financing, Chan said the county should start setting aside $500,000 a year.
Chan presented three possible scenarios for increasing water and sewer rates. The first scenario is effectively what is occurring on Sept. 1; she said that would bring the county to 19.9 per cent.
The third scenario was in line with the increases that will occur on Jan. 1, 2024. Under that scenario, Chan said the county’s cost recovery rate will rise to 21 per cent.
The second scenario called for increasing the flat fee from $20 to $30 and the residential and commercial consumption rates from $1.50 to $2 per cubic metre across the board.
However, the recommended course of action from administration was to introduce an initial increase Sept. 1 that is in line with Scenario 1 and then go with Scenario 3 for the new year.
“It makes sense to me,” said Coun. Jeremy Wilhelm. “We have to find a way to recover some of these costs and this is a very gradual way to do that … It seems like a minimal impact, and we’re getting almost five per cent more cost recovery over time.”
Coun. Bruce Prestidge agreed that the county must raise its water and sewer rates, but he didn’t think it would be accepted very well by residents.
