Marcel Tetrault
Comox Valley Echo
Friday, December 18, 2009

Cumberland's plan to freeze water rates has melted.

On Nov. 23, council passed first and second reading of a bylaw that would have held the annual cost of water steady for villagers in 2010.

On Monday they rescinded that bylaw and amended it to instead increase water rates for residents and small business by 15 per cent.

Coun. Bronco Moncrief said that, according to the province, it would be 10 to 15 years before a regional water system is in place. In the meantime, the village has to pay to upgrade infrastructure.

"I think we've got to bite the bullet and do it," he said. "Otherwise we get no work done on the dams or reservoirs."

A bylaw with respect to sewer rates has not yet come before council, but they passed a second resolution on Monday to also review sewer rates with the view to seeing them rise by 15 per cent as well.

That means that the combined sewer and water bill for Cumberland residents and small business is expected to increase by just under $50, from $325 to $373.75, in 2010.

Other commercial users can expect to see their rates rise by five per cent.

The only taxpayer not facing a rate increase is the Cumberland Regional Hospital Laundry facility on Ulverston, which currently pays $48,250 per year for water and sewer services.

In the past, fees collected for sewer and water have not covered the cost of providing the service, requiring subsidization through general property tax revenue.

Next year, sewer and water fees are expected to result in a $61,000 surplus, seemingly making an increase in water fees unnecessary.

Now, with the 15 per cent increase in fees, that surplus is expected to grow to $115,600.

The concern begins in future years when significant debt servicing costs associated with various infrastructure projects begin to be felt.

If there were no increase this year, the village would be in a deficit position with respect to water and sewer to the tune of $100,000 by 2011.

To break even, sewer fees would have to increase by 26 per cent and water by seven per cent in that year.

"We're trying to smooth the rates," said Makarowski. "If we wait, it could be as big as a 30 to 40 per cent hit."

After the 15 per cent increase in 2010 villagers can expect a five per cent increase in 2011 and 10 per cent in each of the next three years for sewer and water.

Other categories of water and sewer users, excluding the laundry, can expect future rate increases in the three per cent range.

Those rates, however, are not set in stone and must be determined by the council of the day.

© Comox Valley Echo 2009