Vernon city council approves 3% annual increase in sanitary sewer rates annually for five years

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Vernon city council endorsed a three per cent increase in sanitary sewer rates beginning next year until 2026.

A report to council states that the sewer fund is predominantly funded by user fees.

The user fees can be categorized as residential and non-residential, where the residential customers pay a quarterly flat fee, combined with a quarterly fee that is based on metered potable water consumption.

Each quarter's sanitary sewer portion of the billing is based on the potable water use during the first quarter of the year to ensure that irrigation use does not artificially increase sewer rates.

Non-residential customers also pay a quarterly flat fee, and a quarterly fee based on potable water consumption, however, their fee for consumption is calculated based on water usage for the quarter being billed.

The report says the city's sanitary sewer rates have remained unchanged since 2013 when the quarterly flat fee increased by 25 per cent for residential customers, and 6.3 per cent for non-residential customers.

The sewer fund's annual operating surplus has been decreasing since 2013, from approximately $4.070 million down to $3.132 million in 2020.

“The sewer fund has experienced an actual annual surplus of over $3 million based on the current rate structure over the last five years,” reads the report.

“The proposed annual fee increases of 3 per cent over the next five years are expected to generate additional revenues of over $1.4 million. This would establish an expected annual surplus in 2026 of $4.4 million.”

Administration says that maintaining consistent contributions to the sewer reserves of at least $4.4 million is integral for supporting asset renewals in line with the asset management plans.

“This will ensure the city continues to provide services at expected levels, and minimize costly emergent repairs,” administration wrote in the report.