Coaldale utility rates to rise

The Town of Coaldale will see an increase in utilities this year as the community moves to cover $5 million for future infrastructure upgrades.

The utility rate bylaw for 2017 was passed by council during its regular meeting on Feb. 27.

Currently, utility rates for water services cover day-to-day operations and a small amount of capital funds needed for replacement projects. The Town is short $1.1 million needed to replace aging infrastructure, however.

In order to cover those costs, the Town would need to institute yearly increases. Michelle Overbeeke, director of financial services, told council an increase of three per cent over the next three years would be sufficient to cover the shortfall, with additional revenue going to capital reserves.

A similar issue has been noted with sewer services, as current rates cover day-to-day operations and small replacement projects, but remains short $1.7 million for the replacement of aging infrastructure. Overbeeke suggested a similar three per cent increase was needed to cover those costs.

But stormwater services are short by $2.2 million, and day-to-day expenses are not being covered by current set rates. Part of the issue is debt repayment for several large stormwater improvements within town boundaries. It was suggested that stormwater rates see an increase of 15 per cent in 2017, followed by three per cent increases in 2018 and 2019.

For an average household using 18 cubic metres of water per month, the recommended increase would amount to $3.20 per month as of June 1, an increase of $3.28 in January 2018, and an increase of $3.13 in January 2019.

In 2016, the only utility rate increase was to garbage services due to a large increase in the tipping rate from the City of Lethbridge.

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