File photo (Image credit: CFJC Today).

By Aaron Schulze

15 Per Cent Hike

Water utility hike in Kamloops likely to remain at 15 per cent; drop to three per cent in 2029

Nov 7, 2024 | 9:54 AM

KAMLOOPS — The average water utility rate for Kamloops homeowners is still expected to increase by 15 per cent in 2025.

During its regular meeting Tuesday (Nov. 5), Kamloops council allowed city staff to prepare bylaw amendments that would see rate increases of 15 per cent for water utility and five per cent for sanitary sewer. For example, a residential property paying $452 for water and $493 for sewer would see increases of $68 and $25 respectively to $519 and $518.

The increase follows council’s decision in 2023 for a five-year water utility rate increase of 18 per cent in 2024, 15 per cent in 2025 and percentages of 15, 10 and five thereafter. The water rate is expected to rise by three per cent in 2029. The original 25 per cent hike in 2024 was voted down last November.

The water utility rate spike is mostly accredited to the decommissioning of the Noble Creek Irrigation System.

Speaking in council chambers, Councillor Bill Sarai asked if portions of the utility rate increase will go toward reserves.

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“We’re still always chasing dollars, and if we have another $10-million upgrade somewhere or an emergency, we don’t have the money in reserves,” Sarai says. “I understand the 0.0 [per cent] — I was part of that past council where we were always under the impressions where utilities paying for utilities is a good thing… but as our infrastructure is aging, reserves are a big part of it now.”

The City of Kamloops’ Financial Planning and Procurement Manager Dustin Rutsatz says the easy answer is ‘yes’ but there are challenges to predicting the amount of water utility rate hike money going into reserves. That includes the timing and cost of capital projects and when asset management programs begin.

“There may be a project that gets pulled backwards… pushed out… because of the fact that the need is somewhere else more urgently,” Rutsatz says. “Sectoral inflation, particularly in construction industries, is always challenging to predict. We don’t know how long [the Port Authority strike] is going to last and what it’s going to do to the supply chain. There very well could be parts of the equipment coming from abroad that may end up becoming scarce over time.”

Council and staff are expected to begin public engagement on the utility rates on Nov. 20. The budget will be introduced during the Nov. 26 regular council meeting, with a final reading taking place Dec. 10.