Flin Flon city council has regulatory approval to increase utility bills by 30 per cent, but the rates are subject to a more thorough evaluation in the future.
Effective Oct. 1, the boost will see most Flin Flonners’ water and sewer rates rise by $258 a year.
The province’s Public Utilities Board sanctioned the increase last week, declaring the rates ex parte, meaning they are to be reviewed following a more complete process.
“The Board makes this interim rate decision due to the urgent need to increase rates to avoid future deficits [within the city’s utility system],” read a 10-page PUB ruling.
No hearing
The PUB chose not to hold a public hearing on the increase, though ratepayers were invited to provide feedback in writing.
City council must still approve third and final reading of a bylaw to boost rates, but that is considered a formality as there has been no opposition from any councillors.
The city has said the increase is necessary to cover working costs of the water treatment plant, which is in its first full calendar year of operations.
The PUB agreed, citing in its ruling both actual and projected costs related to the municipal utility system.
The ruling and anticipated final approval from council means Flin Flonners who pay the flat water and sewer rate – the vast majority of residents – will be charged $279 per quarter, up from the current $215.
For residents with water meters, rates will also go up 30 per cent across all meter sizes and consumption categories.
Council had suggested the PUB consider softening the financial blow for residents by phasing in the 30 per cent rise over two years.
But the PUB’s assistant associate secretary Jennifer Dubois, said municipalities only apply for a specific rate increase, not a range of possible increases.
Dubois said a bylaw tentatively approved by council sought a 30 per cent raise, so that is the figure the Winnipeg-based PUB took into consideration.
The city also hopes to implement much smaller utility increases in 2015, 2016 and 2017.
The plan would see non-metered residential rates climb from the current $859 a year to about $1,200 by 2017.
Flin Flon utility rates have not increased since 2008.
