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By Alessia Proietti

Stormwater utility?

BUDGET: inflation leading to potential utility rate increases for Red Deerians

Jan 24, 2024 | 7:05 PM

As Red Deer city council debates property tax increases, utility rates are also under the microscope, as discussed during day two of the 2024 budget deliberations.

Inflation was common theme throughout the budget. Administration said that within the City’s own electricity use contract, $1.27 million was added to the 2024 budget as a result.

During the multi-year budget deliberations in 2022, council approved utility rate increases of roughly four per cent for a typical home assessed at $345,000 that would be seen on monthly utility bills such as water, wastewater, solid waste, and electricity. Based on an average water consumption of 17 cubic metres, that would mean an increase of $176.64 yearly or $6.44 monthly.

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Councillor Victor Doerksen estimated this would bring roughly $9 million in revenue for the City.

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For resident utility user fees, a two per cent increase for electricity was approved by council in the original budget. The City is proposing an additional increase of three per cent, totalling a five per cent increase.

For water, a four per cent increase was approved in the original budget. An additional increase of one per cent is being proposed, for a total increase of five per cent.

For wastewater, a four per cent increase was approved in the original budget. No increase is being proposed.

For waste management, a three per cent increase was approved in the original budget. An additional increase of 1.54 per cent is being proposed, for a total increase of five per cent for collections and 3.5 per cent for landfill.

If approved, these rates would be in effect for March 1, 2024.

Stormwater infrastructure collects water from precipitation like rain and snow and is interconnected to the pipes and systems of other utilities, says Jim Jorgensen, Red Deer’s Utilities Manager. Administration states that stormwater infrastructure maintenance projects cost $6 million annually.

Traditionally tax funded, the idea of introducing a stormwater utility with resident user fees as an alternative funding mechanism was initially to be discussed in the fall of 2023. The topic is now scheduled to be debated in council on March 18, 2024.

“Every one of us uses the stormwater system. It’s there to prevent flooding or to help control flooding events, make sure that the system of pipes and ditches and catch basins and all of those sorts of things are in place so that we can manage that,” Jorgensen said, stating that some municipalities like Edmonton already have this in place.

He added that how to portion the fees could be based on various factors. For example, land permeability could mean that lots made predominantly of concrete would send more stormwater to the system in comparison to natural lots that can absorb water within the land.

Lastly, within the utilities department, the City has had to expedite a wastewater treatment plant project for one of their biosolids lagoon liners.

Jorgensen explained that the nine biosolids lagoons at the plant, ranging from eight to 50 years in age, retain wastewater to be cleaned before returning to the river. They are lined to prevent seepage into ground water and are regularly inspected. During a 2022 investigation, it was found that deterioration of some of the liners is likely causing high groundwater parameter concentrations.

While fixing the liners was initially scheduled for 2025, Jorgensen said the City is proposing to fast-forward the project and include it in the 2024 budget, taking $2.5 million from the wastewater utility reserve.

Budget deliberation are to continue until Friday.

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