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Kamloops homeowners are expected to spend 25% more on their water next year thanks largely to a reduction in developer fees and the shutdown of a city-run irrigation system.

City council expressed their disappointment, but accepted it was their own decisions that brought the incoming rate hike.

"I think we've made some bold choices," Coun. Stephen Karpuk said at a meeting yesterday, Oct. 31. "We have to play catch up at some point and this might be one of those times. We already made a decision. We have to live with that decision."

The average home will spend $95 more on water each year, along with other utility rate boosts, according to a city staff report. A large portion of that is due to a discount for developer fees council approved earlier this year.

In April, councillors Bill Sarai and Nancy Bepple were the only two who disagreed with the vote questioning whether homeowners would then be faced with the difference.

It turns out they will be as 10% of the 25% increase is associated with with the reduction for builders, according to the staff report.

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"This is what I thought would happen," Coun. Sarai said. "Everybody in Kamloops is going to be paying an increase for something the builders are going to benefit on their own. This money is never going to get passed on to the new buyer and to the taxpayers of Kamloops."

Coun. Katie Neustaeter was reluctant to approve the funding increase, noting that the rate hike was "uncomfortable" for her because of the previous decision to decrease developer costs and shutdown the irrigation system. She proposed the rate hikes be spread more evenly over the next few years, but staff said the funds were needed to avoid borrowing.

The city decided to shutdown the Noble Creek Irrigation System earlier this year, which served farms in the Westsyde area. Of the 25% hike, 18% is due to the city's decision to decommission the irrigation system, but it's not because of a loss in revenue.

Utility services manager Greg Wightman told council it's due to a combined $3.2 million in payouts to farmers as they lose access to irrigation.

He said it's also thanks to developer fees council decided to decrease over the next three years.

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The remainder is due to projected revenue shortfalls because of severe water restrictions in August, but Wightman said it's not yet clear just how much that affected city revenues. The increase, however, means the city can hold off from dipping into its reserves or borrowing as it prepares for an estimated $10 million renovation to its water intake system.

"We weren't anticipating any major needs, but we identified a $10 million project that needs urgent attention and needs to be started next year," Wightman said.

Council isn't set to make any decisions about the water intake project yet.

In a narrow 5-4 vote, council approved the water rate hikes. Mayor Reid Hamer-Jackson and councillors Mike O'Reilly, Kelly Hall and Neustaeter opposed the increase. 

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Water accounts for the bulk of projected utility fee increases, which are expected to increase by $129 per year for the average home, according to the staff report.

The average home will spend $1,014 in 2023 and $1,143 in 2024 after council approved the recommended rate hikes. Others include sewer costs with a 2.5% increase, garbage with 7% and the newly-added organics fee. The garbage increase only applies to 245 litre bins.

On average, fees will increase by $12 for sewer rates, $10 increase for garbage and $12 for organics.

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