2008 Proposed Sewer and Water Rate Increase

13 Dec 2007

Executive Summary

This paper offers comments to the 2006 BMA Consultant proposal contracted by City Council to review the current water and sewer rate structure in the city. The Chamber strives to offer comments that benefits balance for all groups concerned, with greater consideration to economic growth and prosperity within our community. Although the Chamber applauds Council for driving change, it feels the resolve may be constrained by the limitations of the study�s recommendations, the economic timing, and the ability of the city�s proposed collection systems to implement failry, given one size does not fit all.

It would seem hypocritical at this time for Council to pass resolution supporting a plan that decreases the overall residential cost for a scarce resource that is globally in short supply, with a local supply system that is in crisis, both literally and in the public�s eye. Given the current economic environment, shifting higher costs to an already economically burdened Industrial sector, further eroding the local job market may also be seen as a political blunder. Placing financial hardships on the Average Small Business Commercial sector based on lot size may tip many these small businesses already on the brink, simply since many small businesses survive on thin margins. Raising the land threshold to 1 hectare might lessen the number of small businesses that fall into this category. Consideration in the form of credits should be given to newly developed businesses that now are mandated by City Engineering to install storm water collectors in the parking lots at a significant cost, to temper the flow of water into the storm systems during peak times, since this not only serves the property owner, but the greater whole of the system. All costs need to be considered, including municipal tax rates for each sector, as it is the whole picture that drive prosperity. A system of fairness needs to consider economic impact in the formula. Stunting growth, contributing to job loss, creating an environment where it is no longer profitable or attractive to open shop in the city are all contradictary to the city's mandate of growth and prosperity.

Where large areas of ICI land exist that have no impact on the storm system with costly self-managed storm management systems at significant cost, partial exemptions or credits should be applied. Large institutional facilities that are directly contributing to the storm system may face a greater challenge in disputing the proposed increases.

Above and beyond all of the healthy discussion and review of the proposal, the resolve should not be constrained by the ability to develop software cheaply to manage the process. The software supports the solution, it does not dictate it.

It is the position of this committee that fairness and equality are admirable and supportable causes, however all factors must be considered in application. If business fails, jobs are lost, and then lower residential rates will have caused economic hardships and stunt growth. It is Council�s difficult and seemingly impossible task to balance the equation. Although everyone would welcome a reduction in costs, the solution should seek to maintain current course of action promoting water usage conservation for all, while applying the recommendations stated above to minimize economic impact thus achieving relative fairness, balance and overall benefit for all.

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