|
INSIDE
Expect a
water rate increase
A newly
completed rate survey will change how Point Roberts residents
pay for their water, and how much they pay for it.
“For
95 percent of our customers this will only be a modest increase,” said
water commissioner Madeleine Anderson at the regular February
9 meeting of water district 4. Fellow commissioner Renee
Coe said the district had to address rising water costs and
a stronger Canadian dollar. The rate hike will also pay for
an ambitious capital improvement plan to replace miles of
aging water main that have this year led to 18 main breaks
and costly repairs to roads and property.
Overall
the option preferred by commissioners from the rate study developed
by certified public accountant Barbara Shosten of FCS Group
is for a phased increase that will boost the base rate
for 500 hundred cubic feet (ccf) 162 percent by 2012.
If commissioners
adopt the change the base rate will go from $19 a month for
600 ccf to $20.14. “That was kind of a
winter average throughout the system,” said district
manager Dan Bourks when asked how the base volume was selected.
As water
usage goes up above the base allowance, ratepayers today are
charged $1 per additional hundred cubic feet of water. The
new rate would start ramping up the cost as water usage increased:
$1 per ccf from 600 to 1,400 ccf, $1.35 per ccf from 1,500
to 4,000 ccf and $2.40 per ccf above 4,000. “Not that
many people use more than that but if you do you’re going to
start paying,” Bourks said. The rate study predicts
that the average home will see an initial increase in
their annual water bill of six to 14 percent, but a high
end residential user’s
bill could shoot up 86 percent.
Commercial
users will see increases, from five to 83 percent depending
on the size of the connection and volume used. “The
residential users have been kind of subsidizing the
commercial and they need more capacity, hydrants, fireflow,” Bourks
said. The interruptible golf course irrigation account
will see a 33 percent hike.
“There
are more increases to come,” Bourks said.
And ratepayers should expect 20-25 percent hikes
for the next few years and then nine percent annually until
2012. “We
just haven’t been funding our depreciation
appropriately,” Bourks
said. “We want to have over a million in the
bank by 2012 because we need to start replacing the
mains.”
The cost
of a new water supply is not included in rates but will be
covered by the general facility fee, which could increase from
$1,500 to anywhere from $2,130 with no new source of supply
to $17,000 if the district needs to spend millions
building a reverse osmosis plant. A final report
from Shosten expected next month, will make recommendations
on the general facility fee.
“When a resolution
is ready and we have a final report we can call
a public meeting and take action,” Anderson
said.
|