PUB revises water charges for Rivers
- Details
- Published on Wednesday, July 29, 2015
By Sheila Runions
Banner Staff
On June 15, Public Utilities Board (PUB) travelled to Rivers to hear ratepayer opinions regarding Riverdale Municipality’s plan to increase utility rates by as much as 230 per cent (though that increase would only amount to $5.20 more than the current fee of $2.26, to $7.46). While PUB has up to two months to issue their order, they reached their decision in six weeks and issued the following directive on Tuesday, July 27.
The requested service charge will be inflated by 12 per cent or $11.27 instead of the current $10.11. Water rates per 1,000 gallons will not be what council requested ($19.07) but only $10.15 per month. Sewer rates for 1,000 gallons will not increase the 230 per cent but rather, will drop by 35 per cent from $2.26 to $1.48 per month. The minimum charge for water and sewer will jump by eight per cent ($22.90 per month), not the 79 per cent Riverdale requested. Ratepayers having sewer only will soon pay $15.38 per month or an increase of 31 per cent, much less than the 173 per cent hike council asked for. Bulk water sales will drop from $12.05 to $10; the municipality wanted an increase to $19 (58 per cent). They also wanted to increase the minimum charge for bulk water sales by 57 per cent but again, PUB is mandating a decrease of 17 per cent ($5 from the current $6.05). Riverdale proposed reconnection fees and annual hydrant rent remain unchanged ($50 and $125 respectively) and PUB agreed with that proposal.
In a 17-page report accompanying this PUB order, reasons for their decisions are somewhat explained. Riverdale’s rate application requested that PUB approve revised rates for April 1, 2015, based on the 2017 projections. With this government order not effective until September 2015, council is six months behind in building revenues for anticipated lagoon and water treatment plant upgrades, as previously reported in past issues of this newspaper. PUB also reasoned that Riverdale’s logic for increases may be too burdensome for some users (only 21 of the 600-plus utility users lodged complaints with PUB). The original application which asked for approval last April not only “included the expense associated with debenture servicing for both the water treatment plant and lagoon projects, but a provision for $100,000 per year to be transferred to reserves.” In 2012 PUB once again denied the then Town of Rivers’ request for $100,000 reserves stating: “Reserves are generally not intended to fund major projects as proposed by the Town. Building these requirements into reserve provisions places an unfair burden on current ratepayers who would effectively be paying for capital projects which should be supported over time by the ratepayers that will benefit from those projects. Major capital projects are more appropriately funded through borrowings.”
PUB asked the municipality to once again provide their rationale for $100,000 per year in reserves; Riverdale explained at the June 15 meeting that the “provision is to rebuild the reserve, which will be reduced by $400,000 after the water treatment plant project, to improve the utility’s working capital position and allow for those reserve funds to assist in contributing to the future capital costs. The Board agrees that the working capital position will need to be rebuilt after the $400,000 withdrawal from reserves; however PUB still disagrees with a provision of $100,000 and finds this would still place an unfair burden on current ratepayers.”
PUB did approve, in principle, a rate surcharge to recover debenture servicing costs for the water treatment plant and lagoon projects, as outlined in the municipality’s rate study. Riverdale must now submit another application to PUB who will approve specific surcharge amounts once these have been finalized.
Rates listed above will be effective Sept. 1, when water and sewer users in Rivers will start to receive bills on a monthly, rather than quarterly, basis. More information about this PUB decision, and the process to appeal it, can be found on their website at www.pub.gov.mb.ca; you may also phone 1-866-854-3698 or email This email address is being protected from spambots. You need JavaScript enabled to view it. .
