(rdnewsNOW file photo)

By Alessia Proietti

Budget-related borrowing bylaws

Red Deer’s utility and electricity rate increases finalized

Dec 13, 2022 | 2:38 PM

Red Deer city council officially approved 2023 utility rate increases on Monday among other budget-related bylaws.

At their regular meeting, council passed all three readings of the utility and electricity increases discussed during the 2023-24 Capital and Operating Budget deliberations in early December.

READ: BUDGET: recreation facilities see fractional proposed increases

For a typical home assessed at $345,000, an approximate increase of four per cent would be seen on monthly utility bills such as water, wastewater, solid waste and electricity starting February 1, 2023. Based on an average water consumption of 17 cubic metres, an increase of $170.20 for 2023 can be seen, adding to a monthly increase of $6.29. In 2024, this would be an increase of $176.64 or $6.44 monthly.

This will bring a dividend increase of roughly $3.225 million in 2023 for the City and $3.440 million in 2024.

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In a breakdown, water rates will increase by five per cent and wastewater rates by four per cent, totalling an increase of $3.98 per month.

Waste management rates would increase by three per cent.

Electricity distribution tariff rates would increase by roughly two per cent or $1.61 per month.

Council also approved a new paper utility bill fee to begin on February 1, 2023, to encourage environmentally friendly electronic billing. The City proposed a fee of $1.30 per paper bill, covering the direct costs of printing and mailing, which they say have seen a 150 per cent increase over the last two years.

BORROWING BYLAWS

Council approved first reading of two borrowing bylaws for capital projects relating to infrastructure rehabilitation and management.

The bylaws enable borrowing to occur, in time for the 2023 construction season, but don’t guarantee that borrowing will occur.

The first bylaw is for Safe & Healthy Communities Recreation Facility & Asset Management Costs. The City says the funds will cover infrastructure rehabilitation and replacement to support preservation activities at several city locations including the athletic track, pickle ball courts, and Great Chief Park.

The total cost of the project is $46.892 million, with $9.642 million to be funded from debt.

The second bylaw is for major bridge rehabilitation and replacement, beyond the scope of operational maintenance activities, including the CPR Bridge. The City said they would outline a list of which bridges will be included in the repairs at council’s next meeting.

READ: CPR bridge repair and Centennial Plaza Park redevelopment among proposed in Red Deer’s capital budget

The total cost of the project is $107.772 million, with $96.684 million to be funded from debt.

The City confirmed their current debt is at $295,077,207. With the addition of the funding from the two bylaws, the new total debt would be $401,403,207. With the provincial debt limit at $521,642,068, the City’s new debt would exceed council’s previous direction to utilize a maximum of 75 per cent of the provincial debt limit. The City says the approximate annual debt payments would now be $6,998,034.

The borrowing bylaws will be advertised and returned to council on their January 9, 2023 meeting for second and third reading.