Water rates rise again

Water rates in Yorkton are climbing for the seventh year in-a-row, but by the lowest rate in those years.

This year the rate, which Yorkton Council unanimously approved at its regular meeting Monday, will be 2.75 per cent.

In a report to Council the increase is the equivalent of the Saskatchewan Consumer Price Index, which from August 2011 to August 2012 was 2.8 per cent.

The rate increase equates to 30-cents per thousand gallons of water consumed.

With the proposed rates based on 5,500 gallons per month consumption for a typical household, the monthly bill will increase to $70.35/month from $68.70/month or $1.65/month increase, detailed Director of Finance Lonnie Kaal.

In a report to Council it was explained, "The proposed rates are required for normal operating cost increases. Previous rate increases were required to service the debt load and maintain the current water main/sanitary sewer replacement program. At present the waterworks utility has borrowed $15,000,000 plus the five year interest free SIGI loan of $3,000,000. Payments of $1,700,000 are required annually.

"We are in the final stages of the multi-year capital project and future funds will be spent on distribution. Including new well lines, water mains and sewer trunk lines, the total spent on distribution is over $10,000,000 over the last four years."

Kaal noted overall $45,000,000 has been spent on the waterworks upgrade project and new water/sanitary sewer lines from 2005 to 2011.

In comparison to other cities in Saskatchewan, Yorkton is ranked sixth best on residential rates (improved from seventh last year) and depending upon consumption for commercial rates, Yorkton ranks between ninth and 13th best. These rankings change based on consumption and do not include the most recent hikes.

Councillor Richard Okrainec had a question regarding the comparison to other communities.

"It seems we're making headway on residential (rates), why not on commercial?" he asked, noting the higher commercial rates did not "seem so business friendly."

"We have made progress (on commercial water rates)," replied Kaal, but she added "we were really high to begin with."

Kaal said the higher Yorkton rates also have a philosophical aspect. She said some communities discount high commercial consumption rates.

By comparison past Yorkton Councils have decided the rate for the first gallon and the millionth be the same, said Kaal.