Queens water rates to swell by over 100 per cent

Most residents in Liverpool and Brooklyn will likely have to pay more than double what they pay now for water.

The 1,233 customers of the Region of Queens Water Utility will be on tap to pay an average of 106 per cent more this year to stem rising deficits.

Under a rate proposal to the Nova Scotia Regulatory and Appeals Board, most customers who now pay $75.61 every three months would have to pay $170.32.

Region of Queens councillors approved the three-year water rate study at their meeting on Tuesday evening.

Mayor Scott Christian told QCCR that the large proposed increase as of Oct. 1 will help dam mounting deficits at the municipality’s water utility.

“But the biggest challenge that we were looking at was this structural, perpetual, persistent, operating deficit where the thing would be in a deficit position, more and more and more with each passing year. … 
It just put us in a position really, where we’re recovering enough revenue from the water utility to run it.”

2021 was the last time rates for the region’s water utility were reviewed. They were set for the following three years until 2024. The region has been holding the line on rates since then, but it has racked up a deficit of about $516,000.

If rates don’t increase, that deficit is projected to swell to $3.344 million by 2027/28.

The costs of the utility are borne by its users. 

The region hired two consulting firms to conduct the three-year rate study. They found that revenues have to rise immediately by more than $430,000.

The proposed average increases in years 2 and 3 are 3.8 per cent and 2.7 per cent.

Deputy Mayor Maddie Charlton said Queens water customers had been paying some of the lowest rates in the province.

“I just want to note that because 106 per cent is significant, but when you look at it as a whole, our water rates are really too low, which is what is prompting us to go through this process.”

If the proposed rates are accepted by the provincial regulator, it would put Queens in line with the Town of Lunenburg, which has an unmetered rate for residential customers.

But the new levies would be higher than those charged in the Cape Breton Regional Municipality and the Town of Bridgewater.

A staff report for council prepared by Adam Grant, director of infrastructure, and Joanne Veinotte, director of finance, partially blames the heavy damage sustained at the water treatment plant by a lightning strike in July 2023. An insurance claim covered only part of the damage, according to the report.

The lightning strike led to a boil-water advisory for water customers that lasted almost nine weeks.

After public demand for a break on rates, the region gave a one-time 70 per cent discount on water bills.

Grant and Veinotte also point out in the report that the utility has struggled operationally for years.

Knowing that water users would be on the hook for much higher rates, Queens councillors earlier this year created a $15,000 fund to give rebates to low-income residents.

Christian told councillors that regulators don’t allow separate rates for low-income households.

“But what we are trying to do is find effective and creative solutions to provide a rebate to those customers who cannot bear the financial impact of increased water rates.”

Customers will have a chance to participate in the provincial regulator’s public hearing once dates are set.

Email: rickconradqccr@gmail.com

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