WATER UTILITY INCREASES APPROVED FOR 2023

Year-round homeowners will see their water utility bills increase by just over $16.48 a month while vacant homeowners will pay around $43.67 more per month

By Liz McDonald

Homeowners can expect to see higher water utility bills by February.

Council has approved a 10 per cent increase for water and wastewater utilities for all homeowners. Part-time resident owners will also see a new minimum usage fee. The increases went into effect Jan. 1.

“The new model will ensure that all users are paying a more equitable share of the ongoing costs [of maintaining utilities],” said Shane Bourke, Sun Peaks Mountain Resort Municipality’s (SPMRM) chief administrative officer.

Burke said an average 3 bedroom home occupied year-round will see their water utility bills increase by $7.16, and their wastewater bill to increase by

$9.16. That means their total bill will increase by $16.48 each month.

For the average 3 bedroom home that is vacant and doesn’t use water in a month, bill-payers will see a 10 per cent increase to their base rate and a new minimum charge that is half of the first tier usage rate. A tiered system is used to encourage conservation, and under a tiered system, the rate increases as usage increases. These owners can expect to pay $18.35 per month for water and $25.32 for wastewater each month, making their bills increase by $43.67.

“Part-time residents would likely be using the minimum usage amount when they are in Sun Peaks, so the larger increase would only apply to months their property is vacant,” Bourke said.

Bourke highlighted that properties “occupied part-time will still use less water and have lower bills than a full-time resident. The addition of the new minimum usage rate just better reflects the costs the municipality has to have the system available at all times.”

A report to council last year showed that a 10 per cent increase for water base and wastewater base usage will help the municipality transition utilities to a self-financed model.

The same report showed that the minimum usage charge model will bring water revenues to $161,000 and wastewater revenues to $224,000.

While there are 1,404 permanent residents in Sun Peaks, there can be up to 10,000 people on the mountain at busy times. The water and wastewater systems need to operate for the maximum peak periods.

“Under the previous model, there were periods where non-full-time residents didn't use much water and wastewater. While we had to provide services for the maximum, we were only getting revenue from the portion of the people that were using the services full time,” Bourke said.

According to Bourke, the previous water and wastewater rates were designed for conservation as the village was facing significant risk of water shortage.

The municipality's new surface water reservoir has reduced some of the risk, but Bourke said having low water consumption impacted the municipality’s ability to fund the system.

A report by the Municipal Finance and Utility Department in 2022 found that without an increase in financing, funding for future operations would be at risk.

The report found the village's water and wastewater systems are aging. Upgrading water treatment and distribution will cost $22.4 million and wastewater updates will require $19.2 million, according to the Water and Wastewater Master Plan.

The report noted SPMRM can apply for grants to cover some of the costs, but there are too many projects for funding by grants alone.

Bourke noted he has not received any specific feedback about the approved fee increases at this time.

“The shift just balances some of [the costs] out so that anytime somebody wants to turn on the water, they'll have the water and we can fund the system,” Bourke said.