Niverville's new water treatment plant has been up and running smoothly for over seven-months, and so the Manitoba Public Utilities Board (PUB) requested a water rate study at the end of 2023.

At Tuesday evening's Niverville Town Council meeting Bylaw 862-24 was given first reading which would increase water rates for its residents for the first time in eight-years.

Deputy Mayor Chris Wiebe noted that water rates had been frozen since 2016. “Now, with the new water treatment plant coming online, it’s time to do an update.”

The town of Niverville prepared a water rate study in 2014, which was approved by the Manitoba Public Utilities Board on May 18, 2016. Then another study was done in 2021, which indicated no rate increase was required at that time.

In 2023, the PUB requested another study be completed by December 31, 2023, to review the rates again after the new water treatment plant was completed.

The study has been completed and has presented the PUB with its proposed rate changes.

Quarterly Service Charge is currently $7.37, and the proposed rate has dropped to $5.72.

Water Commodity rate per 1,000 gallons is currently $11.18 with the proposed rate increased to $13.32.

Minimum quarterly charge for using 3,000 gallons of water for a single-family residence is currently $40.91 will increase to $45.67.

The reconnection fee is currently $40 with the proposed rate of $50. And, if a resident requests an additional meter test, their cost will also be $50.

In a summary of the proposal to the PUB, distributed at the council meeting, it was noted that the water commodity rate has increased, largely due to the need to increase the reserve to ensure funds are available for future repairs and maintenance requirements.

Included in these future expenses are the RO membranes that have a five-to-seven-year life span with a 2021 cost of $80,000. The new plant requires four times the amount of these membranes than the old water treatment plant. The RO booster pumps have a 15-year life span at a 2021 cost of $56,000, which the new plant has 6 of, versus two in the old plant.  

The summary did note that the quarterly service charge was decreasing due to two factors. One being that staffing has changed for meter reading. The PUB is no longer requiring high-level technicians to do the job, but rather by administrative staff thus decreasing the cost of labour. And secondly, the annual increases to customer base will spread the cost across more users.

In addition to the changes to previous rates, the PUB requires that Bulk Water sales be calculated using a specific formula to include a capital component, that residents who are already connected to town water have already paid with the purchase of a lot, therefore the Bulk Water Policy has also been brought into this new rate study.  

The proposed Bulk Water Service Rates for 2024 – 2026 are $14.64 per a minimum of 1,000 gallons. Other charges for Bulk Water Services include a water utility per invoice billing service charge of $5.72 and a bulk water fill fee of $32 for a total minimum fee per fill of $52.36.  

Council unanimously approved first reading of the bylaw.

If it is also approved by the PUB and the bylaw passes second and third readings by Niverville town council, then the new rates will come into effect on April 1, 2024.

 

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