Bridge

Committee recommends modest increase to water rates as County prepares for review of waterworks servicing

After successive years of unrelenting water bill increases, consumers may get a break in 2027. A rate-setting committee is recommending rates rise just 2.1 per cent next year—enough to cover the cost of inflation.

The Water and Wastewater Rates Committee was originally tasked with establishing rates for five years (2027-2031). This timetable was tossed asunder in January, however, when Council conceded that population growth in the County was likely to be much less than previously anticipated. This decision tore a much-needed hole through years of grand and ultimately unrealistic waterworks infrastructure planning.

Until recently, Shire Hall had been preparing for Wellington to grow from about 2,000 people to as many as 14,000. The same plans imagined Picton growing from 5,000 water users to more than 30,000. The implications for municipal waterworks were massive and expensive.

Those expectations have since come back to earth.

In January, Council agreed to lower its population growth expectation to one per cent per year—more in line with historical and demographic trends. That was the easy bit. The harder part is reworking all its plans and figuring out who will fund it.

To do this, Shire Hall needs time. It became clear that the rate-setting committee would not have the foundational information to set rates for the next five years.

The County’s Finance Director, Arryn McNichol, suggested that the committee consider an interim rate for 2027. McNichol described the proposal as a cautious, inflation-based approach intended to bridge the gap until a full rate review is completed. He added that work continues on growth projections, infrastructure assessments and long-term servicing strategies—that such work will inform future ratesetting.

Committee member Bob Cooke wanted to ensure a 2.1 per cent increase wasn’t more of an increase than actual operating and capital costs.

Director McNichol said the increase would be sufficient to cover inflationary increases in operating costs. Meanwhile, the County has built up a waterworks reserve over the past decade that may be tapped for capital spending.

Committee chair and Wellington councillor Corey Engelsdorfer agreed that an interim rate is the prudent approach.

“Given the amount of uncertainty surrounding growth projections, infrastructure conditions and long-term servicing strategy, I think a one-year interim approach is reasonable,” said Engelsdorfer. “I think it would be irresponsible to lock residents into anything other than that.”