Members of the Nova Scotia Regulatory and Appeals Board held a water rate hearing in Liverpool on Wednesday. (Rick Conrad)

If the Region of Queens Water Utility doesn’t double its rates over the next three years, the whole system is in jeopardy.

That’s what a consultant hired by the region told provincial regulators on Wednesday during a hearing into the utility’s request for an immediate 85 per cent increase, part of its overall 102 per cent requested hike in rates.

Bruce Fisher, chair of the three-member Nova Scotia Regulatory and Appeals Board panel, asked Gerry Eisnor of G.A. Eisnor Consulting, what would happen if the board held the rate increases to 15 to 20 per cent.

“I don’t want to be cynical, but really, if you cut that much out of this budget, I would be buying bottled water,” Eisnor said.

“You will not have a reliable system. 
I think if you cut this back enough, you’re either going to have a water quality issue or a water delivery issue. Either way, you’re in trouble. … This utility needs to be brought up to be funded properly so it can go forward. It will not be what I would call a sustainable, successful operation.”

Eisnor and consultant Blaine Rooney wrote the water rate study that forms the region’s application for an increase for its 1,233 customers in Liverpool and Brooklyn.

Eisnor said the Queens water utility has been undercharging customers for years, especially when compared to other municipalities like Mahone Bay and Shelburne with similar water quality.

The region made its case on Wednesday for rate hikes that the Queens Community Health Board has called “unreasonable, unjust and unprecedented”.

Even the appeals board’s Fisher referred to the application as “rate shock”.

“We don’t typically see 100 per cent rate increases,” he said during Wednesday’s hearing.

Board members questioned region officials on why they need such a large rate hike, their budget assumptions, staffing, the system’s water leaks and loss, and other issues.

They heard that the municipality has been subsidizing the water utility for at least 20 years, as losses have been covered by general revenue.

And that meant that deficiencies in the system were left unaddressed.

Until 2021, the region didn’t have a good handle on the utility’s expenses. The region’s finance director Joanne Veinotte told the board on Wednesday that when she was hired, she began to implement stricter accounting measures. 

Eisnor said there had been no inventory control over things like water meters, which in many cases are 30 to 40 years old and need to be replaced.

“I don’t think the protocols and procedures were as rigorous as they should have been,” Eisnor said. 

“It was worse than we thought,” Veinotte said. “It took us a while to sort through it.”

But when Fisher asked for specifics on exactly what that means, Eisnor and Veinotte could not provide them.

The utility is also struggling with aging infrastructure, Eisnor said, with much of the piping dating from the 1880s. 

The region says it needs to jack up rates immediately to stem a $516,000 deficit. If rates don’t rise, that deficit is expected to swell to more than $3 million by 2027/28.

The Queens Community Health Board intervened in the rate hearing. It said the region’s initial first-year 106 per cent rate hike request was too high, especially for vulnerable residents on fixed incomes.

After they objected, the region lowered its Year 1 request by taking some funds from other budget reserves and smoothing out depreciation charges over a longer period.

Tara Druzina, chair of the community health board, said during the hearing on Wednesday that she doesn’t fault the current council and staff for the water utility’s problems.

“We know this is long in coming, this has been 22 years. But the 22 years has resulted in a significant burden for our vulnerable population.”

Almost 20 per cent of water utility customers are in arrears.

She welcomed the region’s recently approved utility assistance rebate of $200 a year for people with household incomes of $35,000 or less. But she said the cap should be higher, to match the low-income cutoff for a family of four in Queens County of $48,000.

After the hearing, Druzina said she’s confident the appeals board will consider the impact on low-income residents.

“We understand that the utility needs to run a balanced budget. But now I also think that the utility and the appeals board understand that there are a lot of people out there who just cannot afford a 115 per cent increase. 
So hopefully we can strike a balance. And I’m hopeful for that, and the board seems to be siding on that as well.”

Mayor Scott Christian told QCCR that the region is trying to put the utility back on solid financial ground.

“So I think that it is a mess. It’s a mess that was a long time in the making. 
It’s going to take us a while to get out of it. All we can do is make the next responsible wise decision. And I think that the experts that we’ve convened to look at this file and the commitments that we’ve made in the future of the water utility, I think we’re headed in the right direction.”

Members of the regulatory board asked the region to provide more information on five items by Nov. 28. After that, the board has 90 days to make a decision.

Email: rickconradqccr@gmail.com

The Region of Queens is asking for hefty water rate hikes. (Rick Conrad)

Some municipal water customers in Liverpool and Brooklyn will get a break on their bills.

Region of Queens councillors recently approved the utility assistance rebate for those on low incomes.

Council created the rebate program because the 1,200 customers of the municipal water supply are expected to see a huge increase.

The Region of Queens Water Utility is asking provincial regulators for a 106 per cent increase to water bills. That’s to address an $800,000 deficit.

Under the rebate program, the region will give up to a $200 credit on the applicant’s utility account.

That is expected to cover just over half (58 per cent) of the expected $342 annual increase in people’s water bills. If someone gets the full rebate, they would still be paying about 50 per cent more than they do now, or about $472 annually.

Mayor Scott Christian said he was impressed with council, given that they’re asking customers for such a hefty increase.

“And so I’m proud, I’m proud of this piece of work, and I thank the staff for your efforts in helping us with our vision to get to a place where we can feel good about the fact that these water rates are going to impact a lot of our residents.”

If the Nova Scotia Regulatory and Appeals Board grants the region’s request, most people’s annual bills will rise to $672.

The provincial regulator will hold a public hearing at council chambers on Wed., Nov. 19 at 10:30 a.m. Residents can speak at the hearing, but they must notify the board by Nov. 14. Written comments can be sent by email to board@novascotia.ca or by sending a letter to the Clerk of the Board at P.O. Box 1692, Unit “M”, Halifax, NS B3J 3S3 by Nov. 14.

Councillors approved $15,000 in this year’s budget to pay for the rebate. If more money is needed for the program, staff will return to council to approve the extra spending.

The rebate took effect last Tuesday, after council’s vote. The region will publicize the rebate and tell people how to apply for it.

It is open to all water utility customers with an annual household income of $35,000 or less. 

More information on the region’s water rate application can be found here by searching for Matter Number M12363.

Email: rickconradqccr@gmail.com

Listen to the audio version of this story below

Region of Queens Deputy Mayor Maddie Charlton and Mayor Scott Christian at Tuesday’s regular council meeting. (Region of Queens YouTube channel)

The Region of Queens is sitting on a $1.385-million surplus from last year, but Mayor Scott Christian says the news isn’t as great as it may sound.

“I think a lot of the surplus is on the back of major capital projects that were intended, not getting complete,” he told QCCR.

“So I certainly applaud our finance department and their approach in managing our organization’s finances. But we have this challenge where we’re budgeting money for projects that are really important for the community and we’re just not delivering in a timely way. We need to take a hard look at that and make sure that we are spending the money in the budget that’s going to lead to important projects and progress for residents and for visitors in Queens County.”

The region’s finance director Joanne Veinotte presented the audited financial statements for 2024/25 at Tuesday evening’s council meeting.

She said the region ended the fiscal year with a surplus of $1,385,705, helped along by higher-than-expected tax revenue and returns on the region’s investments. Expenses were lower because of unfilled positions and capital projects not yet finished.

Veinotte also said the Region of Queens Water Utility recorded a lower-than-expected deficit – some 42 per cent less than budgeted, for a saving of almost $185,000.

Even with a higher-than-expected budget surplus and a lower water utility deficit, Christian said he’s not sure how that will affect the region’s upcoming water rate hearing.

“The numbers that are driving the proposed increase to the water rate are modeling sort of well into the future,” he said.  

“I can’t answer if there is good reason to go back and challenge any of the assumptions that were used in generating those projected operating expenditures on the water utility. I’m not sure yet.”

The municipality has requested a 106 per cent increase for most of the 1,200 customers in Liverpool and Brooklyn who are on the municipal water supply.

Nova Scotia Regulatory and Appeals Board hearings are scheduled for Wed., Nov. 19 at 10:30 a.m. in council chambers at the region’s office.

The region hired consultants G.A. Isenor and Blaine Rooney to prepare its water rate study as part of its application to the regulatory board.

In documents filed on the board’s website, the regulator has asked the region for more information or clarification on 55 various points. 

Some are about whether the region knows if people will be able to afford the expected $348-a-year increase for most residential customers.

It also asked the region to submit a revised rate study lowering the financial impact on customers and spreading it out over three years instead of imposing most of the increase in the first year.

So far, there is one registered intervenor in the rate hearing. The Queens Community Health Board is concerned how the increased water expenses will affect the broader health and well-being of residents.

Christian said the proposed increases are important to put the water utility back on sound financial footing.

“We want to get our costs in order and run the water utility in a solvent way that’s aligned to our obligations as a water utility operator, and so the sooner that we can get our costs in order the better.”

Even so, Veinotte told councillors on Tuesday evening that by the time the hearing happens and the regulator makes its decision, any rate increases likely won’t take effect until 2026.

To look at all the documents filed so far as part of the region’s water rate application, use this link and enter M12363 in the field.

Email: rickconradqccr@gmail.com

Listen to the audio version of this story below