Utility fees set to rise
By COLLIN GALLANT on December 3, 2019.
cgallant@medicinehatnews.com
Utility fees are set to rise $9.31 per month for the average household in Medicine Hat next year – 99-cents more than expected – according to figures presented to council on Monday night.
Each year the utility divisions adjust projections in the previously approved four-year business plan before charges take effect on January 1.
The 2019-2022 budget plan, adopted last year, called for cumulative increase of $8.32 per month.
If approved at council’s year-end meeting on Dec. 16, residents would pay on average $6.56 per month more for water service and garbage collection. Changes to gas and power delivery fees would also add $2.75 to a typical user’s bill.
Council members accepted the presentation by administrators, with several stating that, in total analysis, half the hikes were less than expected and that is a testament to municipally controlled utilities.
“How much would we be paying if we didn’t own it,” said Coun. Darren Hirsch. “Citizens are looking for value, and I’m more than pleased to support (the updated budget).”
The cumulative effect is that local residents pay about $40 per month less that in the city with the next lowest charges, Lethbridge, and next year the units will provide a $5.4 million dividend, not including profits from power plant.
That amount is equal to a 6.5 per cent tax increase.
The difference on bills adds up to $11 million less paid by customers.
“That’s $11 million that doesn’t go to an (out of town utility firms) Enmax or Epcor – it stays, right here,” said Mayor Ted Clugston.
Utility committee chairman, Coun. Phil Turnbull, said no one likes paying more, but city hall is doing a good job on maintaining complex utility systems.
“Someone has to pay for what we put in the ground and with out that rate revenue we’d be facing a huge tax bill,” he said.
Fees are based on the cost of operation as well as building and maintaining the utility infrastructure, said Rochelle Pancoast, the general manager of the utilities business support office.
“That’s offering the lowest rates possible,” she said, stating that the budget policy is to keep changes within the range of general inflation, unless work is needed to address flood mitigation concerns.
Specific to sewer, the city has moved and rebuilt three sewer lift stations over the past five years (the Crescent Heights station near Police Point was completed last year). The city also built the Brier Park bypass to promote economic development in the Northwest quadrant.
That means sewer charges that rose by $3.68 per month in 2019, will rise again by the forecast amount of $4.01 next year.
Hikes for electric distribution ($1.80) and garbage collection ($1.21) are higher than forecast, while changes to gas distribution (95-cents) and water ($1.34) were lower than expected.
Jaret Dickie, the utilities business support manager, said the as a whole, the total increase is close to inflation benchmark, and “in general we’ve reduced our capital spending.”
Monthly utility fee increases
Utility 2019 2020 2020
Final Forecast Final
Electric $1.85 $0.88 $1.80
Gas $1.58 $1.14 $0.95
Water $1.72 $1.88 $1.34
Sewer $3.68 $4.01 $4.01
Solid Waste (home) $0.41 $0.41 $1.21
Solid Waste (tipping) $5.00 $5.00 $0
Total (monthly) $9.24 $8.32 $9.31
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