This just doesn’t make much sense to me folks…
You could soon be paying more for your water, even if you’re using less of it.
That’s according to a recent city report that proposes changes to water and wastewater rates, which could take effect in 2009. The interim report, presented to a council committee this month as part of the first phase of a rate-structure review, proposes bigger water users pay less while smaller users pay more, relatively speaking.
That’s drawn the ire of at least one councillor who says the proposal undermines the community’s environmental goals.
“It flies in the face of conservation,” said Councillor Christine Billings, who sits on the community development and environmental services committee.
Water and wastewater rates are calculated using a two-part formula — a fixed basic charge, which is based on the size of the water meter, and a charge for the volume of water used. Staff have proposed increasing the fixed charge from 15 per cent to approximately 20 per cent of the combined costs in order to bring them more in line with what other municipalities are charging. A consultant’s survey of more than 80 Ontario municipalities found that the average fixed charge outside Guelph was 29 per cent.
According to the city’s Waterworks division, an average household uses between 230 to 250 cubic metres of water annually. With the proposed changes, a household using that amount of water would see a $14 to $16 increase in its annual bill. By comparison, a household using 480 cubic metres of water would not see an increase.
Commercial and industrial users, according to the city report, would see a decrease in their costs. For example, a commercial consumer using 10,000 cubic metres of water a year would see a savings of $1,630.
Billings said such a change doesn’t make sense because it penalizes people who are using less water.
“Why would we want to change our rate structure to reflect what other municipalities are doing because they’re not doing nearly as well in conservation as we are,” she said.
City staff contend the proposed changes will ensure stable revenue and predictable, affordable rates in the long-term.
“A user that would use a small amount of water would have a modest increase in their annual bill,” said Karl Cober, a waterworks project manager. “It’s a small, modest increase.”
“The larger users would eventually see a decrease as the use increased.”
The rate change would reflect the costs of delivering the service, but would still ensure it remains revenue neutral, he said.
Another option that’s on the table is to move toward pricing based on conservation and peak usage, he added. But that rate structure is not recommended in the interim report.
“It’s a complicated (issue),” Cober said. “There’s a lot of numbers and we’re trying to get the information out so we can make a good decision for the city.”
A final report is expected to go to council in the fall.
IF YOU’RE GOING
The city’s Waterworks Division is holding an open house about its review of water and wastewater rates
When: Tomorrow
Time: 6 to 8 p.m.
Presentation: 6:30 p.m.Where: Evergreen Seniors Centre, 683 Woolwich St.