Elkford Council is set to increase its sewer and water parcel taxes as the district is facing increased maintenance costs.
Council approved an increase in sewer rates from $70 to $75 per year, while water rates have been increased from $100 to $140 per year.
Mayor Steve Fairbairn says this comes as the District is facing the same inflationary pressures as its residents.
“The cost of doing business is going up and it’s going up at a higher rate than the Consumer Price Index,” explained Fairbairn.
“Provincial and federal legislation have downloaded the cost of that infrastructure and replacement onto municipalities. They also put a requirement onto municipalities that require us to have money in the bank to replace things that we already have.”
Fairbairn says parcel taxes are a way for Elkford to ensure it has reserve funds to help cover future maintenance costs.
“For example, we have a pumping station at the end of our sewer line that pumps the sewage out of town. That pump station is going on 40 years old and the cost to replace that will be well into seven figures,” said Fairbairn.
“We need to have money in the back if it stops working tomorrow. So, every year, we build up our reserves in expectation of needing them.”
District officials note that Elkford’s water infrastructure reserve fund is about $10 million short of being able to replace and repair everything that needs work.
The increased tax will boost the water infrastructure reserve fund income from about $170,000 to $235,000 – about $65,000 annually.
Meanwhile, staff say the sewer infrastructure reserve fund will increase income from $120,000 to $128,000 – about $8,000 annually.
Fairbairn says these tax increases may be unpleasant for residents but will be used when necessary repair or replacement work is needed.
“If you put off doing small increases now, you’re delaying the unavoidable, and then the impact is going to be very sudden and high,” said Fairbairn.
The water and sewer parcel tax bylaws will come back for adoption at a future council meeting.
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