YK councillors confirm minor tweaks to water and sewer rates

City councillors have decided not to change how much Yellowknife residents pay for trucked water and sewer services relative to piped services, despite concerns with the rate structure.

For several months, city councillors have examined whether to shift the burden of covering those costs among residents on trucked and piped water as the municipality seeks to address an anticipated $1.9-million deficit in its water and sewer fund.

A consultant’s review of the city’s existing water and sewer rate structure, which has been in place since the 1990s, found residents on piped services – particularly multi-residential and commercial customers – are projected to overpay for those services. Residents on trucked services are projected to underpay.

Collectively, all residents pay for 95 percent of the cost of water and sewer services while property taxes account for the remaining five percent.

Councillors considered three options to have residents cover the total cost of those services and potentially shift the cost burden among piped and trucked service users.

The first option would have increased the average trucked customer’s bill by 1.8 percent a year, or a total of $244 over three years, so trucked customers would pay for 78 percent of the cost of their services. The average residential piped user’s bill would increase by 1.5 percent a year or $140 over three years.

The second option would follow the consultant’s recommendation to increase trucked service rates by an average of 8.6 percent a year, or $627 by 2028, at which point trucked customers would pay 90 percent of the cost of their services. Residential piped customers would not see an increase.

The third option, which councillors ultimately chose, maintains current cost coverage ratios between piped and trucked services. It allows trucked customers to continue paying 68 percent of the cost of their services while piped users will pay 110 percent of the cost of their services.

The average trucked customer’s bill is expected to increase 0.6 percent annually, or $85 over three years, to account for the additional five percent of service costs currently covered by taxes. The average residential piped user is expected to see their bill increase 0.5 percent annually, or $43 over three years.

Trucked users air grievances

During a lengthy city council meeting on Monday evening, 10 residents on trucked water urged councillors not to choose any of those options.

They pointed instead to a proposal by resident Kevin Hodgins recommending that all customers be charged the same rate per litre of water, regardless of whether they receive piped or trucked services.

Allan Gofenko, Christine Wenman, Gary Vivian, Bruce Valpy, Gerry Cheezie, Jennifer Inch, Marie Wilson, Hal Logsdon and Cathy Allooloo, as well as John Stephenson, president of the Latham Island Neighbourhood Association, all spoke in favour of that idea.

Many of them argued the city’s current water and sewer rate structure is unfair to trucked users. They said trucked users pay more per litre of water than piped customers and face added challenges such as being responsible for repairs.

“Water and sewer are fundamental services that all residents are entitled to and it must be fair,” Stephenson said. “It must be equitable throughout the entire city. The price we pay for water should be the same and not judged on how it gets to our homes or to our businesses.”

According to the city, approximately four percent of Yellowknife residents rely on trucked water and sewer services.

Just one resident on piped services spoke at the meeting. Zina Miklosovic argued that people should be required to pay for the cost of the water and sewer services they receive.

“The money doesn’t come from the heavens,” she said.

Maintaining status quo ratios

In choosing not to alter cost coverage ratios among piped and trucked water users, councillor Rob Foote said he believed that option struck “a more pragmatic balance in the short term.”

That option will also separate water and sewer rates and include a three-percent inflationary increase in 2028. Councillors further directed the city to consider subsidies for agricultural and multi-residential users as well as review surface water lines and trucked subcategories.

Mayor Ben Hendriksen said he believed the proposal balanced “the different push and pulls” being considered while addressing the deficit.

Hendriksen said he did not believe the consultant’s recommendation to have trucked users pay 90 to 100 percent of the cost of their services was “anchored in our community,” while more work is needed before the rate structure is changed.

Cat McGurk said while the current rate structure is “unquestionably problematic,” city councillors had thought critically and weighed many variables before making a decision.

McGurk argued that eliminating trucked water fees, as recommended by many presenters, would increase inequality to a large number of residents on piped services.

McGurk noted the impact of the city’s water and sewer rate structure on renters is already greater than to homeowners on trucked water, regardless of whose monthly bill is higher.

“They contribute more than their fair share to these utilities,” she said.

“The majority of renters in our communities use piped water while those who have chosen to purchase homes on trucked water have sufficient means to own land.”

While some councillors expressed discomfort with not changing the cost coverage ratio, all councillors save for Rob Warburton voted in favour of the status quo option.

“I think this motion does exactly what I don’t think anybody wants and just kicks the can down the road again,” Warburton said, saying it maintains fiscal irresponsibility and does not address the core problem.

“I can’t support this constant revisiting of this issue.”