Monday, December 3, 2012

Moose Jaw Times-Herald: Water, sewer rates to increase nine per cent

Coun. Brian Swanson talks about his motion
to rescind the scheduled nine per cent water
and sewer rate increases in 2013 during
Monday's regular city council meeting.
Times-Herald photo by Lisa Goudy
By Lisa Goudy


Residents will still have to pay higher water and sewer rates in 2013.

During Monday’s regular council meeting, the majority of council defeated Coun. Brian Swanson’s motion to rescind the nine per cent water and sewer rates to be implemented effective Jan. 1, 2013.


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Additional information

In a report to council from the financial services department, it stated Moose Jaw is one of many communities faced with increased operating and capital costs associated with providing safe drinking water and clean sewer systems.

Inflation and increased maintenance costs because of aging infrastructure have played a role in that increase. Also, new infrastructure such as the wastewater treatment plant and the Stadacona sewer line has caused the rates to increase.

The report said the city is also planning to upgrade the Buffalo Pound pipeline rehabilitation and the Buffalo Pound treatment plant upgrades. As outlined in the five-year capital plan from 2012 to 2016, the water utility reserve has been allocated $30.84 million over five years and the sanitary sewage utility has $12.05 million over five years.

The report said the surplus from the water and sewer utilities operating budget is a “significant portion of the funding for the capital projects.” If the revenue from the operating budget were decreased, a number of projects will be deleted or deferred to function within the funding parameters of a rescinded 2013 water and sewer rate increase.

The report said by eliminating the scheduled increases, the water utility would lose $500,000 in additional revenue for 2013 and in future years. It would eliminate $435,000 from the sewer utility in 2013 and in the future as well.

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