Air Base Water Rate To Increase - But Less Than Rural Rate

With Budget Committee looking to recoup lost infrastructure dollars from rural water customers it is now 15 Wing's turn to pay a higher rate, but it will be far less than other rural customers.

After coming out of the in-camera portion of their meeting Budget Committee decided to increase 15 Wing's water rate to 1.5 times the rate charged to city water users. 

The increased rate is to reflect 15 Wing's capital cost of infrastructure replacement. Previously the Committee voted for all other non-city water users an additional 50 percent to raise their rates by 50 percent to 2.25 times what city customers pay.

“So we are going to have a rate different for 15 Wing than surrounding municipalities,” said Councilor Brian Swanson.

Councilor Swanson was attempting to have the funds flow into the Waterworks Utility instead of using the funds to decrease the subsidy to the utility and reduce property taxes.

Councilor Swanson justified not reducing property taxes on the approved rate increase to the base as the utility needs the finds.

“As we know from our capital budget our water utility is seriously underfunded,” he said.

“Revenue from water sales should go to the water utility,” Councilor Swanson said, adding “the bottom line is we are still significantly short (of funds) for the Waterworks Utility’s capital requirements “

Councilor Dawn Luhning said she was confused what Councilor Swanson was looking for in his amendment to the motion. 

“There was no comment from Councilor Swanson in-camera and now I want some clarification,” Councilor Luhning asked.

Councilor Swanson saw the in-camera presentation as unconvincing. 

“The mathematical gymnastics demonstrated on the board...one thing the funds will get to the utility but it has to go to the Operating Budget first,” he said, adding he preferred “not to reduce the Operating Budget that goes to the Utility.”

He went on to state “our capital budget is underwater” going on to state that the City was looking for magic to get out of their predicament and saying it was wishful thinking to think “money is suppose to fall from the sky.” 

The difference in proposed water price increases between the air base and rural customers was a sticking point for Councilor Swanson.

“I know people in rural water co-ops they are not going to be fooled,” he claimed.

Councilor Chris Warren said the increased water rates to rural customers should bring in $500,000 decreasing the necessary taxpayer subsidy.

“My intentions in a perfect world we would have reviewed the outside water rates last year,” Councillor Warren stated. 

“My intentions are to charge rural water users an appropriate amount and reduce the property taxes,” Councilor Warren stated. 

Mayor Frasier Tolmie disagreed with Councilor Swanson's view on the issue stating there was no gymnastics in the way the increasing water rates would cause a reduction in the Operating Budget. 

“The citizens of Moose Jaw are financing the outside water users by that percentage,” Mayor Tolmie stated. 

“When we receive funding from federal and provincial governments that benefitted everyone…it benefits the citizens of Moose Jaw and outside water users...we never charged outside RMs that portion. We were very generous “

“Last year a decision of Council that I supported was not to increase water rates by 15 percent...that resulted in rural water users benefiting,” Councilor Swanson stated, adding “it’s been brought up to where they should have been if we raised water rates last year.”

“We have fixed that shortcoming by going from 1.5 times to 2.25 times. They have figured it out in the rural area. It still leaves us short in the Water Utility,” he said.

Despite his arguments not to use the funds to decrease the property tax demands in the Operating Budget but flow the money directly to the Waterworks Utility the amendment failed in a 6-1 vote with only Councilor Swanson voting in favour.

The main motion to increase 15 Wing's water rates to 1.5 times the amount charged Moose Jaw residents was passed in a 6-1 vote with Councilor Swanson opposed.