Increases considered for water, wastewater and resource recovery city utilities

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Annual taxes for water, wastewater and resource recovery could be going up $100 this year.

The city could be pulling an extra $100 per year out of the wallets of Nelsonites to cover the increasing utility costs of municipal water, wastewater and resource recovery.

In a regular council meeting Tuesday night city staff tossed a pre-budget pitch of rate increases to resource recovery — $25 more per year to $150 — a four per cent increase to water rates, a 3.5 per cent for wastewater utility rates and an additional three per cent increase for water and wastewater rates.

The latter increase would be used for upgrades to capital infrastructure for water supply and wastewater treatment.

Based on an average assessed home in Nelson, the increases would work out to $8 per month, or an annual increase of $100 per year.

“These utility rate increases are needed to address increasing operational expenses, to deliver critical capital replacement projects and to support the aspirations identified in Nelson Next by protecting water, reducing waste and lowering emissions,” said city communications coordinator Dauna Ditson in a press release.

In a presentation to city council on Tuesday, it was revealed that the both operations and capital replacement needed a budget increase, given the significant generational asset renewals scheduled for the next 10 years.

City capital projects include the Five Mile pipeline replacement project ($13 million) as well as the wastewater force main and treatment plant upgrades, which could cost up to $120 million.

“These capital projects are required as these critical assets are nearing the end of their operational lifetimes,” Ditson explained.

Although there are some reserves for major capital expenditures — with a combined balance of $22 million — additional capital reserves will be required to fund these generational assets.

The proposed resource recovery fee increase provides for additional waste collection and recycling investments, addresses inflationary costs, and includes investing to modernize the waste collection fleet towards a less manual process.

If approved by council, the utility rate increases would take effect Jan. 1, 2025 and be included in the utility rate invoices that will be sent to residents in February 2025.