Turner Valley water users will pay more for the service effective Jan. 1 as the Town works to recoup its operating costs while saving money for future infrastructure.
Turner Valley Town council passed second and third reading for a new water utility and sewer service bylaw at its Dec. 16 meeting, opting for a three tier billing system.
Coun. John Waring had requested the option of a three-tier system to compare to the proposed five-tier program presented to council at its Dec. 2 meeting after Coun. Cindy Holladay suggested looking at how Okotoks bills for its water.
The new bylaw sets the fixed rate at $69.51 per billing period, with $25.67 for water, $33.79 for wastewater and $10.05 for storm-water. Residents are currently charged a fixed rate of $33 for each water and wastewater bimonthly.
The new consumption rates will be $1.86 per cubic metre for water and $2.58 for wastewater for 23 and less cubic metres of consumption, representing 59 per cent of properties; $1.93 per cubic metre for water and $2.64 for wastewater for 23.01 to 46 cubic metres of consumption, representing 35 per cent of properties; and $2 per cubic metre for water and $2.70 for wastewater for consumption exceeding 46 cubic metres, representing six per cent of properties.
The bylaw maintains a single tier non-residential rate system.
Turner Valley planning co-ordinator Gerry Melenka told council he’s confident the three-tier system will offer motivation for water conservation.
“It provides a level of incentive to get off the upper tiers because they have a higher price point,” he said. “It still gives that incentive for water conservation and a slight drop in the additional costs percentage.”
Melenka said the change results in an average increase of 4.76 per cent for residential users and $4.71 per cent increase for non-residential users.
The base rate now takes into account storm-water service and costs for infrastructure repairs, reading meters and purchasing and delivering water from the Sheep River Regional Utility Corporation (SRRUC). Similarly, wastewater rates incorporate the cost to purchase service from the Westend Regional Sewage Services Commission, collect wastewater from users, metered charges versus water meter use and infrastructure costs.
Melenka said the new bylaw addresses issues the current bylaw - which was created in 2008 and revised last in 2016 - did not.
“The current bylaw is weak on determining who pays for what where a break is involved and if there is a tree,” he said. “It should be very black and white and it’s not. How we have done it in the past based how the bylaw is written, it’s very grey. It’s a very big read, but it’s a lot more precise.”
Waring said he’s happy with the bylaw, which council approved unanimously.
“Seeing as I brought this to council originally I think they’ve done a fantastic job on putting this all together,” he said. “Going to the three-tier system gives the residents a more cost effective base than they had before. I’m very much in favour of it.”
Holladay said while she likes the three-tier rate, she was hoping for a bigger split between tiers.
“Okotoks in their first and second tier is a 35 cent split and 75 going from second to third,” she said. “I’m worried it’s not going to have any sort of conversation impact on conservation.”
Melenka said the bylaw will come back to council annually for review.
“We want to revisit it every year to make sure we’re current and not cutting ourselves short,” he said.
Revenue from the fixed rate will be placed into the Utility Capital Reserve Fund to fund capital replacement of water, wastewater and storm water infrastructure.
A stabilization fund will be created so a percentage of the revenue will be set aside to help offsite infrastructure repairs and replacement costs.
The Town sits on about $35.2 million in utility infrastructure assets that will need to be maintained and replaced over time.
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