Regina proposed a two per cent utility rate increase on Friday which would be effective starting New Year’s Day.
“With the recommended 2 per cent increase, the average household will pay an additional $2.70/month on their water bill. This is the lowest rate increase in a decade,” said Chris Holden, City Manager.
The 2018 Utility Budget will allow for upgrades to the city’s wastewater and drainage systems to manage extreme weather events as well as maintain existing service levels with a $56.3 million investment in infrastructure renewal.
Two main projects funded in 2018 will be the Trunk Relief Initiative ($10 million in 2018), and design and construction of the St. Anne’s Park drainage project ($3 million in 2018).
For 2018, based on revenues of $132.8 million, expenditures of $76 million, a transfer to the General Utility Fund Reserve of $49.2 million and debt repayments of $7.5 million, the utility is proposing an overall 2 per cent increase to balance the budget.
“Recent surveys indicate residents support a user fee model for certain services. We are listening. The Water Utility is user pay and operates on a full cost recovery basis,” said Barry Lacey, Executive Director, Financial and Corporate Services.
“The money collected through water bills and other user fees pays for the operating, maintenance and capital costs for running the water utility.”
The rate model includes a daily rate and a usage rate. The daily base rate, which will be $1.40 per day for the average household in 2018, supports capital and maintenance and funds the reserves so the city can keep water, wastewater and drainage systems functioning.
“We all pay our fair share of maintaining and building the water, wastewater and drainage system’s infrastructure through the daily base rate,” Lacey said.
“Because the usage rate is based on volume, it also means a portion of the water bill is based on what you use. Those who use less, pay less. We believe that this Utility model best meets the needs of Regina residents.”
The rate increase is pending council approval which will happen later this month.
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