After receiving a report showing 2024’s project completion rate of 15 per cent two thirds of the way through the year, Sunshine Coast Regional District (SCRD) directors upped pressures on staff to advance its volumetric water billing initiative.
In addition to a frontage parcel tax in areas where regional water service is available, the SCRD currently levies residential properties connected to their systems a flat water use charge. That fee ranges from $965 in North Pender to $715 from household connections on the Chapman system. While parcel taxes would continue, a move to volumetric billing, a priority for the board, is proposed. That would have a basic water use charge for all users, then bill owners by their metered water use. A consultant’s report received last September recommended escalating the per litre rates for higher water consumption in “blocks” or ranges.
But before any adjustment to how regional water is billed for, the SCRD must decide what any new basic and “user pay” rates would be.
Calls to move 'as quick as we can'
At the Sept. 26 committee of the whole meeting, the committee modified its recommendation to the board that those new rates come forward “as soon as possible” rather than by an undetermined date in, 2025, as recommended in the staff report received at the meeting.
“I just think the approach is a bit more cautious than I would take and I encourage more boldness,” Area D director Kelly Backs stated in his review of that report.
Backs’ sentiments were shared by Sechelt area director Darren Inkster, who said “I’d like us to go faster, as quick as we can."
Inkster went on to question report proposals on the variation in per litre charges for high blocks of water use. “I’m not happy with rate structure proposed. Twenty per cent [more] for high users …. is not enough for me.”
Not yet ready for rate setting
Along with a premium charge for customers using more than the target level (currently encouraged at no more than 200 litres per person per day), Area E director Donna McMahon stated she would like to see a “reward for being frugal with our water” provided to households that use less.
She also requested that staff present an updated water use dispersal chart, which had been shared with directors in the past, to update them on the number of high water use properties, better enabling them to gauge how different water use charge levels would impact residents and water system revenues.
Stating “we hear the message loud and clear, reward lowest users, penalize the higher users," acting chief administrative officer Tina Perreault said challenges in rate setting stem from the lack of a complete picture of future operating costs for the water systems. Those costs need to be covered by billing revenues. She also noted another unknown staff is working to understand is how water use patterns will change with ongoing promotion of conservation. More time is needed for staff to make both determinations. Without greater surety on how much funding need to keep the systems running and the volume of water that the region will be billing for, she explained it was difficult for staff to recommend rates and discounts.
The committee’s recommendation, due to be up for board consideration on Oct. 10, calls for a trial in the North and South Pender systems next year. Clients will be asked to pay based on the current flat rates but will also receive mock bills based on a yet-to-be developed uniform block rate structure. The “for your information” bill will show users what their 2025 water consumption will cost them when the region moves those two systems to full volumetric billing in 2026.
By trialling and then starting by-volume water bills on the Pender systems (where water use has been metered on some properties for a decade) the SCRD will have time to address anticipated challenges with introducing a new billing system before it tackles introducing a new method of calculating water charges for its Chapman system. That water function has the most customers, but volumetric billing on it isn’t possible there until all user properties have meters. The final phase of installing those (in the District of Sechelt) is slated to be complete next year.
Leak resolution, type of use also important
Also in that ask from the committee, is to include policy on leak resolution “as part of the rate setting process” and that customer classifications used to set usage rates be based on BC Assessment Property Classes.
As additional debate on water rates unfolds, McMahon said there needs to be a way to recognize and bill appropriately for commercial or home-based business uses on rural residential parcels. The SCRD does not have business licensing in its rural areas and may not be aware of all commercial operations. McMahon’s warning was if that type of use is not charged a rate that recognizes the water is being used to generate income, the SCRD could see an escalation in high water use businesses locating to rural areas to enjoy residential rather than commercial water use rates.
