Water rate hike (image credit - CFJC Today)

By Michael Reeve

WATER RATE

Kamloops Council approves smoother water utility rate increase

Nov 21, 2023 | 4:08 PM

KAMLOOPS — The water rate saga in Kamloops has come to an end, with city council voting in favour of an option of deferring a portion of the rate hike in favour of borrowing money to complete needed projects.

Option 2 (image credit – City of Kamloops)

The approved option, titled ‘smooth rate and borrow’ will see the water utility rates increase 63 per cent over the next five years, starting with 18 per cent in year one, followed by percentages of 15, 15, 10 and 5.

“The work related to the Kamloops Centre for Water Quality would be funded through debt and expected to be repaid in 2028. Use of debt would result in an overall increase in costs associated with interest incurred on the overall cost to borrow. The current Municipal Finance Authority short-term interest rate is 5.62 per cent (for the period of November 10 – 16, 2023). At this interest rate, the impact on borrowing to the Kamloops Centre for Water Quality intake work would be $550,000 annually and would be subject to change over the term of the loan,” highlights the report.

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The increases were needed to cover the costs of the $3.2 million decommissioning payments for the Noble Creek Irrigation System and council’s decision to support development by increasing the assist factor on development cost charges.

The option was passed after the original 25 per cent hike was voted down this Tuesday afternoon (Nov 21) in a 5-4 vote.

The new plan will see the average Kamloops home owner pay just shy of $69 more next year and an additional $307 dollars over the five years.

The money borrowed in the plan would be for work associated with the Kamloops Centre for Water Quality and needed upgrades within the facility.