Viking decides water and sewer ‘must pay for itself’ with user pay system – $300,000 tax subsidy will be eliminated
The Town of Viking Council has decided that water and sewer delivery must start to ‘pay for itself.’ Property taxes will no longer subsidize the service to the tune of almost $300,000 as it has done every year.
Up to this point, the town has had no reserve funding built up to keep and maintain the town’s water and sewer system.
To help end the subsidization of water and sewer in Viking, the town is raising its cubic metre water consumption charge by 15 per cent, from $3.387 per cubic metre to $3.887. Town CAO Don McLeod explained this was done after he discovered that the town’s property taxes subsidized the water and sewer rates by $300,000 annually, or almost 3 mills, with no money being put into reserves for replacement of the lines.
“Any replacement was done through borrowing and taxes,” he said. “Council determined that the utilities must pay for themselves without using municipal taxes. Council decided to implement these changes to better reflect the user pay format. The more you use the more you pay.”
Sewer charges will now be based on a percentage of water consumed instead of a flat rate, and there will be a new distribution charge of $15 per month. McLeod said large users and institutions will pay more for service, and bulk water rates are now set at $12 per cubic metre.
The bills in February will also reflect an increase by the water commission in its flat rate charge.
“The people who use the most will pay the most, it’s user pay,” said McLeod. “If you use the minimum amount you will hardly see a change…The town needs maintenance funding (as it) owns the water and sewer lines within the town limits.”
Another increase will be seen on utility bills as the water commission raises its flat rate payment charge.
The water commission stated on its website that currently there is no reserve funding in place for maintenance, upgrading and eventual replacement of the waterline system. The line was built down Highway 14 in 1991 as a reaction to a bad drought causing water shortages.
The new flat rate charge is necessary “to ensure reliable supply of water for our customers,” stated the commission, and for that to happen “certain upgrades are required in the near future.”
The commission will now charge a monthly flat fee to all of its customers based on consumption. In Viking case this amounts to $6,500 per month.
McLeod said large users and institutions will pay more for this service as well.
Mayor Ritchie said the water commission has already passed the rates, making it a done deal. “We didn’t even flinch,” he said, having heard about it from a former interim CAO and councillor.
“So it is what it is,” said Ritchie, “and we’ll have to deal with it.”
Dana Ewashko, current council rep on the commission, said the increase in the flat rate is necessary. He also spoke of the Town of Tofield, which is objecting to the new rates.
“We don’t know what they’re going to accept if the timing’s bad with their new reservoir,” he said, referring to Tofield’s building of a new water reservoir…
“The Town of Tofield made a presentation at the last water commission meeting. We took it under advisement,” he said.
Viking Councillor Laurel Weisgerber agreed with Ritchie and Ewashko. “No one wants to pay more but we all need our water,” she said.
At the meeting, the Town of Viking’s Master Rates Bylaw was given three readings to enact it for the 2019 year.
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Patricia Harcourt
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