Chestermere tackles spiralling utility rates
After years of resident complaints, city looks at retaking control of delivery
Chestermere city council is considering returning the delivery of utilities to city control after years of complaints from taxpayers about soaring bills.
Since 2014, residents have been concerned about high utility bills from Chestermere Utilities Inc. (CUI), the arm’s-length corporation formed by the city to provide water, heat, sewage, waste collection and recycling services.
When many residents faced bills near thousands of dollars for water and sewer services, CUI said the cause could be leaking toilets and other fixtures, or faulty water metres.
In 2016, Chestermere council unanimously decided to hike utility rates for waste by 25 per cent and water by 15 per cent after CUI officials told council the current rates were too low to cover service delivery.
That same year, frustrated residents gathered nearly 5,500 signatures on a petition to have the province investigate Chestermere city council for an alleged lack of transparency over the soaring utility bills.
The province declined to investigate last year.
Last Tuesday, council for the city just east of Calgary decided to look at a change in governance and operations of CUI, which could include bringing it back under the city’s control.
“Future operational considerations for CUI was included in our strategic plan,” Mayor Marshall Chalmers said in a news release.
“It’s important for council to look into the financial future to combat the significant utility rate increases in past years.”
Reviewing the utility will be KPMG, the city ’s auditors, and McMillan LLP, the city ’s legal counsel, to provide recommendations for options on restructuring CUI.
Restructuring options include having CUI being brought back into the hands of the municipality; retaining its existing structure but giving management and operations to the municipality; changing CUI’s approach to financing new investment; and partnering with other utilities or municipal agencies to enhance its performance or improve efficiency.
The city said some of these options could be combined.
“I have full confidence in KPMG and McMillan LLP’s ability to provide the restructuring options necessary to satisfy council’s desire to move in a different direction,” said Bernie Morton, the city’s chief administrative officer.
The cost of the report is $65,000 and the alternative options report is expected to be submitted at a special meeting of council on Oct. 22.
In an effort to become better informed of CUI’s operations, all members of council were appointed to the CUI board effective immediately.