The town is set to increase residents' rates for sanitary utilities as it gears up to fully utilize the new multi-million dollar South Red Deer Regional Wastewater Commission (SRDRWC) system by 2015.
At council's regular meeting on Jan. 27, members gave first reading to an amendment to the Utilities Bylaw that will see residents' user rates increase from $2 per metric cube of wastewater to $2.20.
An administration report to council stated the budgeted wastewater increase is due to the $3 million a year contribution the town will be required to make to the SRDRWC starting in 2015. The $3 million to the SRDRWC is based on an estimate of 863,000 metric cubes that will be processed through the new wastewater system.
ìWe are going to pay whatever the consumption is but the estimated value is $3 million based on 863,000 metric cubes, which is what we generate in a year,î said Heather Whymark, director of corporate services, adding it is forecasted the town will be paying about $3 million each year to use the new wastewater service from 2015 onward. ìThat will vary. If we pump more cubes the bill will be higher. I don't think it is going to be less because we are already knowing that is where we are at, around that mark already.î
In 2013 and 2014, the town is only paying the SRDRWC $310,000 because only 500 metric cubes are being pumped through the system. However, the system will become ìfully liveî in 2015 and the cost will immediately jump to $3 million per year, said Whymark.
In preparation for the huge cost to residents the town introduced gradual utility rate increases last year as a way to make the transition to the new system more affordable for residents. The plan called for annual sewer rate increases of 20 cents per cubic metre for six years, from $2 per cubic metre in 2013 to $3.40 in 2020.
Town council is expected to give second and third reading to the amended Utilities Bylaw at its Feb. 10 meeting.
The SRDRWC wastewater line is a long-awaited $138-million regional project that was built with 90 per cent funding from the province. It replaces sewage treatment plants and lagoons at communities south of Red Deer, including the lagoon at Innisfail, which is being closed.
The new regional wastewater line runs from Olds, up through Innisfail and to Penhold, as well as through parts of Red Deer County, and finally into Red Deer where the wastewater will be treated at expanded and modernized treatment facilities.
The SRDRWC is made up of the Town of Innisfail, Town of Olds, Town of Bowden, Town of Penhold, Mountain View County, and Red Deer County.
