Warman residents can expect to pay higher water rates beginning in June, thanks in large part to a 2.99% hike in the price of water the city buys from SaskWater.
Warman City Council voted at its meeting on Monday, May 9 to give first reading to an amendment of the municipal water and utility rates bylaw that would increase both the minimum charge and the consumption rate for water.
The amended bylaw would still need to pass second and third reading, expected to take place at a council meeting May 24, before it would be implemented.
If passed by council the new rates would take effect June 1. The minimum charge for water in the city would rise by $1.35; from $45.22 to $46.57.
The consumption rate for water would go up by 77 cents per 1,000 gallons; from $25.84 per 1,000 gallons to $26.61 per 1,000 gallons.
The increase in rates is designed to pass on the higher costs paid by the city for water, as well as the cost of maintaining and replacing the necessary infrastructure for distributing the water to residents and businesses.
The city’s water rate structure is based on a user-pay formula, which has a lower minimum rate and higher consumption costs. Council had earlier adopted this formula as a method of encouraging water conservation by users.
This year’s increase will not be the last. SaskWater has informed the City of Warman that it will see a further 3.63% increase in the price of water in 2023.
During discussion of the water and utility rate bylaw during the May 9 council meeting, councillors suggested it may be further amended to reflect next year’s increase. Second and third reading of the amended bylaw is slated to take place at the next Warman City Council meeting on Tuesday, May 24. The last water rate increase for Warman residents was a whopping 9.75% hike implemented in 2019; necessitated by a massive price increase by SaskWater.
SaskWater, which owns the pipeline that supplies water to Warman, is a crown-owned agency that purchases bulk treated water from the City of Saskatoon.
The City of Warman and other Saskatoon North Partnership for Growth (P4G) customers are currently negotiating a revised agreement with SaskWater and the City of Saskatoon. As part of that negotiation process, the City of Saskatoon recently created a new ‘Reseller Rate’ which is more transparent and fair. In the past, under the old agreement, the City of Warman paid the same rate as an industrial customer. That cost included mark-ups to cover the City of Saskatoon’s infrastructure and growth costs.
SaskWater is seeking a 20-year agreement, while the City of Warman is pressing for a five-year agreement.
Urban municipalities in the region north of Saskatoon all have different formulas for calculating the price of water and sewer services for their residents and busineses. This results in some differences, depending on the formula, the amount of water consumed, and whether surcharges and fees are included in the overall price. However, the overall costs to consumers in all the municipalities are comparable.