A new sewer calculation rate will come into effect for users in June 2009 – moving from a flat sewer rate to a lesser base rate plus consumption fee.
Currently sewer customers are charged a quarterly $135 flat sewer rate and that amount is increasing to $142 under the 2008 budget.
The new billing system is based on an $85 base rate plus a consumption rate, which isn’t expected to exceed $1 per cubic meter.
Therefore under the current system everyone, regardless if there is one or 10 people in the home, pays $568 a year. But based on the district’s average consumption of 59.75 cubic metres per quarter, under the new system costs for low usage would be around $460, average usage would be $579 and high usage would cost $700.
These are estimates based on a consumption rate of $1 per cubic meter.
“Those are not final numbers,” said Catherine Lord, director of financial administration.
“But I think it’s going to be pretty close to that.”
Whatever the final consumption rate number ends up being, the new system aims to make billing fair to what people are using.
To prepare customers for the change, a note will be made on utility bills starting June 2008. It will indicate what the sewer charge would be if the billing was based on consumption.
“It’s the beginning to sort of get a feel for it,” said Coun. Jim Garlick.
“We’re doing it gradual instead of just leaping.”
The base rate of $85 was chosen as it is close to the fixed costs required to operate the system.
Charging a base rate plus consumption versus a complete metered rate is also important to reduce the initial impact on families.
Then once the new billing system is implemented in June 2009 the base rate can be reduced over time and the consumption rate can be increased.
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