Water users in Kamloops will be paying more in 2025.
Council had set a rate increase schedule back in 2023 which it has elected to stay on track with for next year.
For years, the city has been keeping water rate increases at zero to help ratepayers. Unfortunately, that appears to have finally caught up with the utility provider and council has agreed to raise rates by 15% in 2025 and eventually see rate increases stabilize to 3% per year by 2029.
Financial Planning and Procurement Manager Dustin Rutsatz says there a few things in particular that are continuing to the need for raise the rates. “Thigs that happened, including taking away the noble Creek irrigation society, and although that operated at a loss, there was still some cost to get rid of that. Also removing the [development cost charges], or changing the DCC assist factors from a 1% to a 10% has an ongoing effect on this. Also through advanced asset management, we know what we need in that utility to sustain it. We look at that 15% rate increase is $68/year on the average user, or someone who uses their allotment of water, or five $5.67/month.”
Councillor Stephen Karpuk says this has been a long time coming as past council did what they could to avoid rate increases to the water utility. “For almost nine years, we did zero increases in water utility rates. During that time, we took our water utility reserve from about $27 million, or I think 26 and change, down to somewhere close to $7 million because we thought zeros were great. Everyone wants a 0% tax increase because we must be doing fantastically. But we spent the bank account.”
Report to Council
Kamloops is Canada’s most complex water distribution system, requiring highly qualified operators and effective utility management practices. Staff’s continued efforts to enhance the already strong asset management planning practices in the water utility have identified a need for rate increases throughout the five-year budget. These rate increases will support the water utility’s long-term sustainability while ensuring a cost-effective and reliable service for customers. As presented in November 2023, staff recommend adopting a 15% rate increase for 2025, which will result in a $68 annual increase (approximately $6 per month) for residential homes using their allotment of water.
Staff recommend the rate increases outlined in Table 2 for the water utility throughout the 2025–2029 five-year budget. These rates align with the rates presented to Council in 2023 and aim to stabilize the anticipated annual rate increase at 3% by 2029.
