The new water utility rates discussed in the regular meeting of Town Council on Monday were approved during a special meeting this past Wednesday.
The third reading of the new rates had been opposed by Councillor Tom Zariski, necessitating a special meeting so the rates could be implemented for March.
Councillor Zariski explained that residents had approached him with questions and he needed time to find the answers before feeling comfortable supporting the new rates.
“People were questioning how we calculate the rates and what the net result would be. I couldn’t answer those questions. I needed more information on what we were doing was logical and reasonable,” explained Zariski.
Zariski voted in favour of the new rates Wednesday night after having those questions answered, but conceded the rate structure is not perfect.
“For the present, this is pretty good, not perfect, but this is the best we can do for now,” said Zariski.
Councillors asked for a review of the rate structure before the end of the year. Consultants will be brought to Drumheller to discuss options as to how Drumheller determines utility rates.
All of the money from the water utility bills goes towards operating and maintaining the water system in Drumheller.
Every cost, from delivering water, purchasing chemicals, to conducting regular maintenance must be paid for through the utility as per the full cost recovery regulation imposed by the provincial government.
“There is a high cost (in maintaining the utility) and we don’t like to increase the rates, but we can’t go in the hole,” said Councillor Doug Stanford. “There are many costs in there.”
Stanford added that despite the penitentiary paying an additional $170,000 more this year, after changing their agreement with the Town, the money still does not diminish the need for an increase to the rates, especially considering that vital maintenance is needed.
“What happened was that we, as a Council, were told by the government that we had to do full cost recovery for our water,” explained Councillor Sharel Shoff. “We’re just trying to cover the cost of distributing and cleaning the water, chemicals, and maintenance." The third reading of the new rates passed unanimously. Rates generally increased by three per cent, though the base rates increased by 5 per cent. The new rates took effect on Thursday, March 1.
