Sundre council will not be providing a wastewater rate concession to the owner of Pro-Water Conditioning, after he requested a reduced rate because of a nearly 23 per cent hike in prices.
“For us it was a 23 per cent hike from December to January and because of that we've had to raise our selling prices,” said Mike Crouch, owner of the company.
Town officials approved an increase of 22.5 per cent in water and wastewater rates for the 2014 year. This changed the $1.73 per cubic metre charge to $2.12 per cubic metre.
But Crouch was not expecting that much of a price increase at one time.
He was present at the April 7 council meeting where councillors told him they wouldn't be providing a wastewater rate concession.
Crouch said the increase has negatively affected the business. Councillors advised him to increase selling prices.
As a business owner, Coun. Chris Vardas said he has had to raise prices at Trendies in the past in order to pay the bills, and that customers have been supportive.
Crouch requested the concession in February because Pro-Water Conditioning uses, cleans and sells town water and therefore puts less water into wastewater.
“I requested it because we don't use the wastewater side of things as much as the water side because we aren't putting nearly as much water down the drain as we take,” explained Crouch.
“We're putting it into bottles and shipping it away.”
But it was not solely the increase in water rates that forced the company to raise prices, he said.
“Because of the water rate increase and the cost of fuel being so high we were forced to raise our selling prices,” he said.
“It's not solely the water, but that was definitely a good part of it.”
After town administration officials investigated the idea of a concession, they requested further direction from council. Council received the report for information.
“Council should consider that the infrastructure requirement such as having wastewater piping to each business will not change, nor will the need to repair and maintain this infrastructure,” reads the report from administration to council.
“As long as some wastewater drainage is required, due to a toilet flushing or water from a sink, there will be an infrastructure requirement.
“Therefore, if a wastewater rate concession is provided to some, then the rates for others within the town will have to increase to offset the concession, since the cost of maintaining the infrastructure remains the same.”
Town officials estimated Pro-Water Conditioning's water consumption costs for the year of 2014 to be at $6,134.22 and wastewater use at $3,674.75.
“There's been a great number of increases over the last five years so I wanted something to help compensate for that,” said Crouch.
Administration officials determined that Pro-Water Conditioning's water consumption increased significantly from 2009 to 2013.
“In 2013 Pro-Water consumption was 2.7 times higher than in 2009,” reads the report.
“They are experiencing higher cost for water and wastewater as a result of growth in their sales of water besides the town's increased rates since 2009.”
Sundre's water and wastewater rates increased in 2010 and 2011 because of a requirement from the provincial government to build and operate a water treatment facility. At that time, council also made a commitment to build water and wastewater reserves for the future.
“The increases were phased in over the two-year period prior to opening the treatment plant to minimize the impact of our increased costs associated with building and operating this new facility,” reads the report.
There were no price increases in 2012 and 2013.
It is also noted in the report that the town's wastewater rates are tied directly to water consumption.
“Metering of wastewater is not a practical practice therefore municipalities set rates based on the assumption that a percentage of all water used in the town is returned to the sewer system for treatment at our lagoon and the cost is covered by the wastewater rates we charge,” reads the report.
All residential and commercial users are currently charged the same rate.
"For us it was a 23 per cent hike from December to January and because of that we've had to raise our selling prices."Mike CrouchPro-water Conditioning owner
