Inequality issues in utility rate for Edson residents.
At a special meeting in June 2016, Edson Town Council gave the thumbs up to a nearly $15 million bid from Alfa Construction Inc. to build the new water treatment plant for Edson. A project that was mandated to be built by the province. It was an known expense that has been coming for some time and 2016 had to be the year of decision; the most expensive bid we understand was over $20 million.
Town of Edson communications coordinator Steve Bethge told us at the time that the Town of Edson would be taking out around $10 million in the form of a debenture for the project.
On January 18, 2017, an official notice was posted on the Town of Edson website that there would be a utility bill change effective January 18 adding an additional monthly fee of $14.25 per month due to the construction of the new Waste Water Treatment Plant. The notice said that all users connected to the sewage system would pay the new fee and that the monies would be put towards the cost of constructing the new plant.
In December 2016, Edson Town Council decided that there would be no increase in property taxes for 2017. We asked Bethge how long users could expect to pay the extra utility rate. “This rate will be the rate for the 2017 year, but as with any utility rate, these can be subject to further review as time goes on,” said Bethge. “The length of the loan is 20 years, so this levy will be on the bills for this time.”
In September 2016, Edson Town Council discussed how to pay for the Waste Water Treatment Plant. Several options were on the table regarding an increase in utility rates. The 20-year term was expected to mean an increase of $13.40 per month; an increase of $14.25 per month is not too off the mark I guess. Approx. 42 per cent of the total cost of $17.5 million is covered by this fee,” said Bethge. “The rest comes from a mixture of grants, offsite levies, and costs already paid by the municipality.” If this works out, could the currently unaffordable Edson West End Sewer line be financed in a similar way?
The devil is invariably in the detail. We were curious as to whether there would differences in the utility rate for larger users. One might logically expect for example, a hotel with 50 bathrooms to pay more than say a house with two bathrooms. Apparently not. “The fee is added to any utility bill that is connected to the Town sewer system so that would include businesses. Currently that would be the same flat rate,” said Bethge. “At this time we felt the flat fee was the fairest way to go about this as the capital cost of the project doesn’t change based on usage.
Those that have a higher usage will still pay more via the consumption rates. The rates will be reviewed annually as with all of our utility rates.”
I accept that the plant must be paid for but for me, the inequality is where the additional
utility rate thinking leaves the rails. Times are hard for many. There are people on fixed incomes, low incomes and some on virtually no income. For a lot of businesses, not all, an increase in costs of $14.25 per month is not even the daily coffee budget. For someone on a
low wage an increase of $14.25 per month could make hard times harder. I believe this set up needs another look. If you feel the same. It’s election year folks, this is a great time to talk to your councillors and make your feelings known.