AR proposes water rate increases

By Carolyn Sloan

The Spectator

NovaNewsNow.com

With substantial capital expenditures over the next few years, the Annapolis Royal Water Utility came before the Nova Scotia Utility and Review Board to seek approval for proposed water rate increases over the next three years.

On February 27, Annapolis Royal CAO Amery Boyer explained to board chairman Murray Doehler that the town had slated a long list of capital projects over the next 30 years, including more than 16 that were high priority, and a major water and sewer project currently under way on Champlain Drive.

She noted that the town’s operating fund could no longer support the water utility, and that the town was concerned about compounding debt given the amount of borrowing required over the next few years.

Given the new debt the town will acquire, including $140,000 in March, and another $275,000 to finance a balloon payment, the utility is proposing an increase of 47 per cent for residential customers in 2008-2009, and an additional three per cent increase in 2009-2010 and again in 2010-2011. The utility has also proposed an average increase for other metred services of between 37 and 63 per cent the first year, between three to four per cent in year two, and two to three per cent in year three. Based on a review of the proposed increases and presentations at the hearing, the board will be considering whether or not to approve the new rates.

SUBDIVISIONS CONCERNED

Wayne Currie, representing the Branch Water Pipe Line organization, was granted formal standing at the hearing, and opposed the rate increases based on the quality of service being provided to the Alden Hubley Drive subdivision residents.

The Branch Line organization represents 15 paying members of the water utility who live outside the town’s water system. The residents are billed as a group by the town, and receive their water through a two-inch line, that is then split into two additional lines to service the houses in the subdivision.

Currie explained to the board that the water pressure for these houses was less than that of other houses serviced by the town, noting that there were no individual water metres to the houses in the subdivision. While the town plans to install meters at the two-inch lines leading into both the Alden Hubley Drive and Hillside Drive subdivisions, at present, the rates they pay are not based on a measurement of actual consumption.

“As long as the service provided to the Branch Water Pipe Line members is inferior to that provided to other users of the Town of Annapolis Water System,” said Currie, “the Branch Line members object to paying the same rate as those users.”

He proposed that the rate increase to the Branch Line be set at an amount equal to the average increase for other users of the service, and that once the level of service is brought up to par, and individual houses metered, that the rate be set accordingly.

CAO Amery Boyer responded to the presentation, noting that even with the new rate, the subdivision residents would still be paying less than 50 per cent of what town residents would pay.

Following Currie’s presentation, Eugene Hay spoke on behalf of the residents of Hillside Drive, who are also similarly opposed to the rate increases. He explained that while the subdivision purchases water from the town, the infrastructure used to provide this service to households, including a central manifold system in the subdivision’s centre, is owned and maintained by the residents of Hillside Drive, who are responsible for the costs of maintaining the system.

“This is a unique situation for which residents receive no consideration or compensation from the Water Utility,” said Hay. “By paying the same as town residents and in addition bearing the responsibility for maintenance costs of our own infrastructure, a cost which town residents are not responsible for, we feel we are being unfairly burdened.”

He also noted that in 2005 when this issue was raised with the town, elected officials indicated that they would be willing to work with residents of the subdivision to help resolve these problems, and yet, there has been no communication from the town since that time.

“While it is clear that they (the town) sought legal advice to determine whether or not they had any responsibility for this infrastructure,” said Hay, “there has been no communication from the town…since December 2005.”

Both service user representatives noted their opposition to proposed rates based on the extent of the hike, which would mean an increase of 107 per cent for the residents of Alden Hubley Drive and Hillside Drive subdivisions.

“As residents of this province, we understand that providing clean and safe drinking water is expensive,” said Hay. “However, we feel that the rate of increase being proposed…is beyond any increase that we as taxpayers have seen granted to other services such as land taxes, electricity, and fuel. Bear in mind that there are families on fixed income and retirees who will find this proposed increase more than they can pay.”

HISTORIC GARDENS CONCERNED

Also making presentation at the hearing was Ian Davidson, chair of the Historic Gardens’ board of directors, who expressed concerns on behalf of board members and staff regarding the effect of the proposed water rate increases on the non-profit organization.

Given their level of consumption, it was calculated that if the proposed rates were approved, the total water expense for the Gardens would increase from $7001.39 in 2007, to $11, 744.79 in 2008, with at total increase of 81.02 per cent over three years.

As a non-profit organization struggling to keep afloat, the proposed rate increases would make things very difficult for the Gardens, said Davidson.

CAO Boyer told the board that the town was aware of these special circumstances at the Gardens, noting that part of the problem was that the organization was paying for a better quality of water than they need to water their plants. She added that the town would have to work to find a solution.