Gibsons residents are looking at a significant increase in the cost of water service for 2016.
At a March 1 special meeting of the committee of the whole, councillors gave preliminary approval to increases in water rates, and to carrying on with efforts to make those rates more “equitable” across the different property classes.
Councillors heard from consultant J.P. Joly of Econics, who’s been working with the Town since 2013 on a financial and rate review of the water system. He said the bottom line is that “the financial health of the water utility continues to be stressed,” but the Town is on the right path to turn that around.
Joly’s written report notes, “The financial health of the water utility has been somewhat bolstered by the 2015 special levy; however, some unforeseen factors continue to place pressure on the Town’s financial position. These include: higher than expected operating and maintenance costs; an unexpected refund to a commercial customer due to a billing error; lower than expected consumption; and a slight increase to capital budget following from the Water Supply Strategy Update.”
Coun. Jeremy Valeriote, who attended the meeting via video conference, said he’d also like to see Gibsons move toward a system that has better incentives for people who use less water. He suggested a shift away from fixed charges in favour of variable charges.
Coun. Silas White supported the idea, but said pursuing it should wait until the 2017 budget.
For single family homes, the committee voted in favour of a $21.50 bulk water facilities charge (which had already been debated as a separate item before council) to be applied as a parcel tax, a two per cent increase in the existing parcel tax, a 20 per cent increase in “fixed charges” (meter rental), a 10 per cent increase in variable charges (usage), and a new special levy of $75 to help cover the costs associated with the e-coli contamination and boil water advisory of 2014.
It works out to an estimated $62 increase in the fixed and variable charges for a home with average water usage, but because the 2016 special levy is less than the 2015 levy, the parcel tax will be $53.50 less than last year (although it’s around $100 higher than before the special levies started).
For multi-family buildings, the only difference is a 10 per cent reduction in the fixed charges. Commercial properties could see a 65.8 per cent increase in fixed charges and a five per cent increase in the variable charges.
“I’m hoping by the end of this term I’m finally going to see this thing [water system budget] hitting black, rather than red,” Mayor Wayne Rowe commented afterwards.
Council will resume its budget debates March 15 with a look at sewer rates.
Gibsons’ chief financial officer Ian Poole said changes in water or sewer charges will have to be adopted by April 1, adding that Town staff expect to recommend a seven per cent increase in sewer charges at the March 15 special committee of the whole meeting.
