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Urban Systems presents water rate options to council

A representative from Urban Systems was on hand on Monday to present rate options.
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City residents might finally be on the home stretch of the water meter implementation program after a presentation to council on Monday.

John Weninger from Urban Systems was present at council’s Committee of the Whole meeting to show council several options for determining water meter rates.

To start, Coun. Bev Tripp spoke in favour of a “universal,” or flat rate.

”I would not be happy with anything but a universal rate for everyone,” Tripp said. “My feeling is water is an inalienable right, it is a community resource just like others we have a flat rate for, for example sewer. A universal rate is what would most satisfactorily meet the needs of our community. I think any kind of graduated rate would focus on putting a burden on the poor.”

Currently, though water meters are installed, the city charges a flat rate for residential customers. Weninger presented four rate options to council.Weninger said that in each set of options there are drawbacks – for instance, Weninger said that a greater stability in funding for the system through a flat rate discourages conservation, but a system that encourages conservation will have fluctuating revenue as residents learn to conserve. through consultation with council, Weninger said they will arrive at a rate system that balances the city’s competing objectives. He also highlighted difficulty of understanding billing as another factor to consider, with a universal rate as the most simple and a tiered system as more difficult.

Coun. Colleen Ross said she was in favour of a system that encouraged conservation, but didn’t jeopardize affordability for lower income residents.

“My concern is always the tiered rate, the first tier is always way too low. When it is too low, it is punitive. We need to do more in this town in training people in water conservation methods. With a flat rate it does not encourage people to conserve,” she said. “I can see two tiered, if the first tier is high enough.”

Coun. Julia Butler said she believed a tiered system would punish people like herself who grow food to help feed their families.

“This is the issue that got me passionately involved with council. I was lower income, working poor you could say, and I have a huge garden and about 11 fruit trees. I like to can and preserve for the winter for my kids and to grow organic food. I was scared that right would be taken from me by the city and I would no longer be able to afford to grown my own food,” Butler said.

Weninger detailed the options before council. He also took questions from councilor’s about the options available, including a three tiered system which has worked in other municipalities.

Weninger outlined four options: the flat rate; the fixed charge; the minimum charge; and the “inclining block” or “tiered” rate.

A flat rate provides stable revenue, he said, but does not encourage conservation. A fixed charge, meanwhile, assigns a price to each unit of water, which provides a degree of revenue stability and promotes some conservation. The minimum charge model is similar to the fixed charge model, but first provides a water allotment to be set by council before the variable rate kicks in. Finally, the tiered rate assigns higher prices as water consumption increases, promoting sustainability but also an unstable funding source.

While both Tripp and Butler spoke about the inalienable right to water, Ross said she feels people also have “an inalienable responsibility” to conserve water.

“If we have a two tier, can we make sure it is high enough that we are not punishing people for gardening and those with larger families,” Ross said. “I would like to work proactively in the summer with the city and residents to do education around water conservation. We speak about inalienable rights and I struggle with that, because we have an inalienable responsibility. I believe we have the responsibility to conserve.”

Weninger said the potential rate structure, whichever is chosen, would include system infrastructure renewal.

In the past there had been a water rates committee, Tripp said, and questioned if Urban Systems would be determining the rate.

“Yes the water rates committee was disbanded and there was discussion of forming another committee with having a consultant on board, and in this case it is Urban Systems that would give options for the committee to have a perspective on it, which is what we need, and that is likely the direction we might still go,” Konrad said in response.

Council voted to received the presentation for information. The feedback provided by council will be used to develop three draft options for review.