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Water rates on the rise

Town and county residents will see increases starting in January
ATH Water treatment plant
Water rates will be going up for residents in the Town of Athabasca and Athabasca County in January, as both councils decided to pass an increase from the Aspen Regional Water Services Commission on to users. The water treatment plant on 34 St. is where the water we all drink is treated and distributed throughout Athabasca, Boyle and the county. Chris Zwick/AA

ATHABASCA - With the approval of the Aspen Regional Water Services Commission’s (ARWSC) 2021 budget, the cost of water will be going up in all three member municipalities — Athabasca County, Town of Athabasca and Village of Boyle — but only the residents in one of them won’t see an increase on their water bills, at least not yet. 

Back in the fall, ARWSC’s budget included a 6.83 per cent increase in the water rates that would be charged to the municipalities. From there it was up those municipal officials to make up for the increase by either dipping into reserves, increasing property taxes, or increasing water rates. 

Athabasca County councillors were the latest to discuss the options at their Oct. 8 regular meeting, while town councillors did the same at their Oct. 1 regular meeting, with both councils agreeing to pass the increase on to residents. 

In Boyle, several weeks ago, soon after the water commission approved its budget, councillors decided to discuss their path forward at budget deliberations. 

Interim CAO Robert Jorgensen said later he doubted council would be passing on the increase on to residents. 

“We have not decided what we’re going to do with the water rates, we haven’t even got into our budget yet,” he said. “I’ve put the increase into the expense portion, but not into the revenue. I don’t think council is going to be touching the water rates this year.” 

During town council’s Dec. 1 meeting, chief financial officer Jeff Dalley told councillors to expect approximately a $59,000 increase to the town's budget to cover the increase. 

“If we were looking to even break even with the $59,000, we increase rates. If the average customer uses 15 cubes, we would need an increase of 11 per cent just to break even, that would put us at roughly $58,494 additional dollars.” 

CAO Rachel Ramey asked the council to make a decision at the meeting so administration could draft a bylaw, noting with three readings it would not take effect until the new year. 

“We should have a decision today or a direction for administration so we can do a bylaw amendment; we have to bring that back,” she said. “That's three readings, and then give people notice before we can put this in place, so we're not going to see an increase on the first bill of the year.” 

Coun. John Traynor was firm that he had no interest in passing the increase onto users, many of whom are struggling in the current economy with the COVID-19 pandemic continuing to spread. Instead, he recommended reaching into the town’s reserves. 

“We have to dig into our reserves for this year, we're saving reserves for a rainy day and this is about as pouring rain as I can see it. And I'm tired of raising taxes, and I'm tired of raising fees and putting it on the little guy. I think it’s time that we just said enough is enough and give the people a break and try to find that $59,000 another way.” 

Coun. Tannia Cherniwchan took a different tack, saying, “I don't want to go to reserves and I don't want to increase the property tax either, but we need to do the cost recovery.” 

Traynor remained opposed to any increase, but Mayor Colleen Powell felt passing the cost along was fair as the increase is applied to people and buildings that do not necessarily pay taxes, as opposed to adding the amount to property taxes. 

“I'll put my two cents in, I think that this is reasonable,” said Powell. “The other thing is that this hits all users in town, not just residents and not just business and hits all those people and all those buildings that do not pay taxes … there is a bit of the ability to control how much water you use. We are a very water wasteful society.” 

The motion to direct administration to bring forward the water rate increase in the 2021 budget that is equivalent to the percentage of increase that was passed along by the water commission. 

The vote passed 5-1 with only Traynor standing opposed. 

At the county’s Dec. 8 meeting, the same options were on the table for councillors. 

“I tried to look at this from a number of ways,” said county manager Ryan Maier. “And at the end of it, the only thing that really made sense was a five per cent increase across the board.” 

The county’s scenario is different from that of the town and village, as the municipality provides water for several of its hamlets as well. Starting from the water treatment plant, the waterline goes south to Colinton, turns east to Boyle, then north to Grassland and Wandering River. 

Without changing rates, the county would be charging about 30 cents less per cubic metre to Grassland and Wandering River than it purchases it from the commission, said Maier. 

Even with the five per cent increase there is still a glaring deficit, as there usually is. The average operating deficit for the last three years comes in at $165,000. This year, that number is projected to come in at $115,000. 

“It still results in a net deficit to our water and sewer operating. Ideally you would like to get that to where there is cost recovery, otherwise ratepayers who don’t get water are making up the difference for those that do get water,” said Maier, noting for every month the current rates are still applied, the county sees $2,000 in lost revenue. 

Colinton residents can expect to pay an additional $40.68 for their water and sewer bills in the course of the year. In Grassland, it’s $57.48; and in Wandering River, it’s $57.84. 

Coun. Dwayne Rawson asked what would be needed to break even. 

Maier said he didn’t have the exact numbers, but said the rate would have to be increased “significantly,” perhaps up to 20 per cent. 

 

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