Utility ratepayers will be seeing higher water and wastewater bills starting Jan. 1.
Council approved new utility rates on Dec. 14 to reflect updated costs charged by the respective commissions. Coun. Rudy Durieux was absent for the meeting.
For water, both residential and commercial customers will pay a fixed charge of $12.83 per month, up from $9.86. The consumption charge decreases to $2.64 per cubic metre consumed, from $2.71.
Wastewater is where ratepayers will experience what one councillor described as "sticker shock."
Both residential and commercial customers will pay a fixed charge of $18.40 per month, up from $10.42.
The consumption charge for residential payers will be $4.03 per cubic metre consumed. For commercial, it will be $4.49.
However, residents will get a break on solid waste. Collection and disposal decreases to $23.04 per month, from $28.89.
Wastewater rates have not been increased since 2012.
"The council of the day, in review with administration, (had not) been advised it was the right time to put the rates up for the past three years," said mayor Judy Dahl.
"This year is an anomaly. It's different because of the fact we just opened our wastewater line and the rates have come in almost triple from the inception of the project."
The town operates utilities on a user-pay model and does not subsidize rates.
Now, each wastewater rate also pays for itself.
The consumption rate will not be used to subsidize the fixed charge, which pays for base costs even if the utility is not used, said chief financial officer Garth Lucas.
"If we want to talk about fairness, that's the way to go because then everybody would be paying their fair share in the base rate for recovery," said Coun. Mary Jane Harper.
Homeowners themselves can also contribute to higher bills. If they have weeping tiles or downspouts hooked into the sanitary system, the amount of water entering the wastewater system spikes after major rainfalls. That water is sent for treatment, at $1.95 per cubic metre.
Dahl said an education or incentive program is needed to reduce that extra flow.
"We can do it. We need to educate and we need to work together. Perhaps we have to door knock and go door-to-door until everybody in the Town of Olds understands what the consequences are on utility bills."
"This year is an anomaly. It's different because of the fact we just opened our wastewater line and the rates have come in almost triple from the inception of the project."MAYOR JUDY DAHL
