Chamber criticizes utility rate model’s ‘inequitable billing tiers’

As council considered increasing utility rates, debate reignited around the Municipality’s tiered model on Tuesday (Jan. 6).

The Municipality adopted a tiered “CCC rate model” for its utility billing in 2022, forgoing flat rates, that considers three components: connection, consumption and capital. This model separates fixed and consumption costs, while the capital charge goes toward infrastructure.

Paul Butler, executive director of the Jasper Park Chamber of Commerce, criticized the “inequitable billing tiers,” saying the model unfairly benefits single family homes over tenants and tourists in larger properties.

“Billing based on consumption already imposes higher costs on those who consume more,” Butler told council. “Tiering those consumption charges and then billing additional connection and capital charges and then tiering those destroys any sense that this model is equitable.”

Coun. Ralph Melnyk said the model was adopted, in part, to build capital reserves so infrastructure could be properly repaired and maintained.

“That was the rationale that I voted for in the last term to bring in this model,” Melnyk said.

Butler replied he wasn’t against collecting for capital reserves but rather how the model was weighed heavily against certain users.

Mayor Richard Ireland argued there was a cost to keeping a property connected to the municipal system, whether that property draws water or not.

“If our only avenue of revenue is through consumption, that in itself leads to inequities,” Ireland said.

While maintaining the tiered model was inequitable, Butler suggested a continuation of connection fee to address this concern.

Utility rates increase

Council gave first and second reading to the utility fees bylaw, which would increase water levies by 7.8 per cent, sewer levies by 4.4 per cent, solid waste fees by 4.1 per cent and recycling rates by 5.5 per cent. Coun. Kable Kongsrud was the only member to vote against both readings.

A residential property with a water connection smaller than one inch and using 20 cubic metres in a two-month billing period, for example, would see a $95 annual increase to its water levies.

Administration’s report attributed many factors to the increase. For water levies, these included higher costs for salaries and benefits, transfers to reserves, specialized contract services, supplies and other expenses.

Out of the $8.39 million in utility expenses, $7.27 million will be collected from levies, and the remainder will come from bulk sales or dumping.

Supplementary property taxes

Council also gave first and second reading to the supplementary assessment and tax bylaws.

These bylaws ensure property owners, who are receiving municipal services and infrastructure support, have improvements assessed and taxed even if they are completed mid-year.

The revenue generated from supplementary property taxes was $5,163 in 2021, $48,795 in 2022, $24,895 in 2023, $7,917 in 2024 and $5,660 in 2025.

Because of the wildfire, increased construction activity is expected for 2026, with many projects completed partway through the tax year.

As of Dec. 8, 61 properties were in the early stages of redevelopment, 32 had approved building permits and 59 were under construction.

Council will consider third reading for all bylaws at its next meeting.