Residential sewer rates set to increase soon

By Rob Vogt
Claresholm town council has taken the first step to increase the residential sewer usage charge from 50 per cent to 75 per cent of water consumption.
At its April 13 meeting, council gave first reading to an amended water and sewer bylaw after hearing a presentation from Abe Tinney, the town’s chief administrative officer.
He explained the municipality’s water and sewer bylaw establishes rates and charges for the provision of water and wastewater services.
Currently, the residential sewer charges are 50 percent of the water consumption used.
During recent budget review discussions, the town’s audit and finance Committee discussed residential use and how the majority of the water use goes back into the sewer system.
Through that discussion the committee determined the existing residential sewer rates do not sufficiently reflect the true cost of providing wastewater services or contribute adequately toward long-term infrastructure sustainability.
The committee recommended council consider increasing the residential sewer rate to improve cost recovery and capital reserve funding.
Tinney shared a comparison to other municipalities.
Claresholm’s residential sewer flat rate of $19.59 is under the average flat rate of $30.67, as is its consumption charge of $0.98 per cubic metre.
The average $2.06 per cubic metre.
Furthermore, in Claresholm, residential sewer charges are based on 50 per cent of the water consumed at a given dwelling, whereas the average is 88 per cent.
The 50 per cent number has been established in Claresholm to recognize some residential water use will not enter the town’s sanitary system. that is garden and yard watering.
Thus, residents are not charged sewer consumption at 100 per cent of their treated water use.
The audit and finance committee’s recommendation is to move toward a stronger user-pay approach, whereby customers more proportionately fund the services they utilize.
It was noted wastewater collection and treatment systems are capital-intensive, and residential users generally place a higher demand on system capacity, maintenance, and long-term renewal.
Increasing the residential sewer rate from 50 to 75 per cent of the water consumption represents a measured step toward improved cost recovery while remaining mindful of economic impacts on residential ratepayers.
The proposed amendment will initially increase annual revenue generated from residential sewer services but may also initiate some water conservation due to the rate increase. Reducing reliance on general taxation or cross-subsidization from residential users will improve the municipality’s ability to fund wastewater capital projects through reserves, potentially reducing the need for future debt or abrupt rate increases.
Additional revenue generated by this adjustment will be directed toward the water and sewer capital reserve, consistent with council’s long-term financial sustainability objectives.
Preliminary estimates based on 2026 conservative residential water consumption to date indicate increasing the residential sewer rate to 75 per cent will result in additional annual revenue of approximately $110,000, depending upon overall residential water usage during the year.
These funds will be allocated to wastewater reserves to support replacement of infrastructure.
Council then gave first reading to a bylaw with the new rate.
The final two readings of the bylaw will be given at one or two future council meetings.
Once third reading is approved, the new rate will take effect.