By Roy Wood, Special to the Times Chronicle 

A roughly 10-per-cent hike in the cost of municipal services will hit Osoyoos residents next year following the town council’s initial approval of water, sewer and garbage rates. 

For an average home assessed at $720,000, 2026 rate hikes will be:

  • Water: up $111.12 per year or 13.4 per cent;
  • Sewer: up $33 per year, or 4.6 per cent; and 
  • Garbage: up $33.24 per year or 16.9 per cent.

The increases came out of a special council meeting on November 18, at which council gave preliminary approval to amendments of the water, sewer and waste management rate bylaws.

The total annual services cost will jump $176 from $1,748 to $1,924.

The increases, particularly in water, continue a process that began more than two years ago, when council made the decision to address long-term deficiencies in the town’s water and sewer infrastructure.

Following a summer 2023 release of commissioned asset management plans, the initial version of the town’s budget for 2024 included huge increases in user fees for water and sewer.

One estimate suggested that for an average Osoyoos home, total taxes and user fees would have jumped from $3,852 to $5,366. Reaction was slow to develop, but when it did, it was angry, loud and widespread.

Eventually, council reconsidered, reducing the increases substantially and pushing the needed catch-ups down the road.

In a report to the special meeting last week, CAO Rod Risling pointed out that the shortfall that resulted when council backed off on the budget two years ago remains. “To meet the requirements of the 20-year plan … approximately $800,000 more per year is required.”

The budget proposal from town administration was for an annual jump of $87 per average household in water fees. 

During discussion, Councillor Johnny Cheong suggested adding an additional $24 a year to be earmarked for reserve accounts “to help mitigate borrowing costs in the future.”

Councillor Zach Poturica seconded Cheong’s motion to add the extra $24, pointing out, “We’ve got some big challenges ahead of us. We’ve inherited some big challenges. Part of the correction we’ve been going (through for) the past three years is moving … forward in the right direction.”

One of those challenges will certainly be the planned new water treatment plant scheduled for completion in late 2028. It will treat and pump water from Osoyoos Lake and replace the current well-based domestic water system. Planning remains in the early stages, with a final site not yet determined.

Risling’s report characterized the treatment plant as “by far the largest project ever contemplated by the town (which) will have a direct impact on utility rates.” 

He wrote that eventually borrowing costs for the plant would likely increase utility rates by $324 per year and operating costs as further $120.

On the sewer side, town interim financial services director Nicolette Keith wrote that the $33 annual increase is an essentially cost-of-living adjustment except for “maintenance and supplies,” which were underfunded in past years and needed a catch up.

The $33.24 increase in garbage and recycling fees includes a calculation for an increase following negotiations for a new contract with Waste Collections. These increases are not final. 

There are also increased costs for repairing and maintaining the new carts required for automated curbside pickup. The promised new carts are expected to be delivered to customers before Christmas. 

Council gave first, second and third readings to the water and sewer bylaw amendments. First reading was also given to waste management.