Estevan city council has proceeded with second and third reading of its utility rate bylaw, despite concerns from the public about a contentious component.
Council approved the bylaw at Monday night’s council meeting. The bylaw does not include a utility rate increase or a consumption rate increase, but it does include an increase in the infrastructure fee, from $20 to $30 per bimonthly billing cycle.
The fee was introduced in 2004 as a means to ease the financial burden for those facing a water main replacement through the local improvement plan. The fee decreased the burden on affected ratepayers from 80 per cent of the project to 50 per cent.
But those who have had their water mains replaced since 2004 have expressed concern with the infrastructure fee increase, because they believe they’re being hit twice.
The infrastructure fee increase is expected to generate enough money so that council can resume the water main replacement program next year without needing the local improvements.
Two ratepayers wrote to council about the issue. The first, Jared Stang, noted that when he purchased his home in 2012, the original bill for water main replacement was $10,224.41, and the previous homeowner had made two payments of $1,372.76.
Stang eventually decided to take over the existing balance and pay it in full rather than through annual payments.
“All current homeowners of Estevan should have to be held accountable for their individual infrastructure replacement,” said Stang.
Stang said the city does need work, and he is willing to pay his share, but he believes asking people to pay twice is “terrible.”
Mack, meanwhile, had his water mains replaced in 2008, and also said it’s unfair for those who have had local improvement projects completed.
“I think this is double-billing the affected homeowners and needs to be corrected,” said Mack.
Mack noted he has paid $20 per billing cycle for 14 years, as well as the cost for the water main replacement.
Mayor Roy Ludwig said approximately 680 properties have been involved in the water main replacement program over the past 14 years, and many are still paying back the cost of the replacement.
Ludwig hopes a fair and equitable solution exists for those affected ratepayers, but council also has to worry about the needs of the city.
“We are making inroads and I think we’re doing the right thing, it’s just what to do to try to pick up and help out the people who have already paid,” said Ludwig.
Council considered tabling the utility bylaw to the next meeting on March 26, but Ludwig said the councillors wanted to move forward, and then try to mitigate the issues for those who have already paid.
Each member shared their thoughts on the issue. Councillor Trevor Knibbs wanted to know how far council would take the exemptions for the infrastructure fee, and how council could move forward in a positive way so that people don’t get a $10,000 water main replacement bill.
He wants to know how much it would cost to rebate those who have had their water mains replaced.
Councillor Lyle Yanish voted in favour of the bylaw, but suggested some form of a rebate to some of the affected property owners.
“To me, I’ve had a lot of citizens talk to me who were concerned, including these two gentlemen here (Stang and Mack), and hich I’m glad they wrote letters, because we’ve never had letters from anybody,” said Yanish.
Coun. Greg Hoffort, in a lengthy speech, noted that he had his water mains replaced in 2012. He said it’s important to get back to replacing water mains and sewer mains to address the city’s infrastructure debt.
Water mains are a city asset, not a personal asset, and so replacements should not be billed to the affected homeowner.
“Yes, it happens to run by my house, but it services the entire community, and not just my house,” Hoffort said. “These lines go everywhere, and they’re not my asset to do with what I want.”
Ludwig asked city manager Jeff Ward and city staff to come up with options for what could be done as far as a rebate or an exemption, but the mayor cautioned that it doesn’t mean a rebate is going to happen.
Ward noted that he and others have spent a lot of time looking at options for a rebate program. It could be done on a credit basis, but there are some logistical concerns over how to work it out.
