Small Community Infrastructure Sustainability - Drinking Water

Often revenues are insufficient to meet both operating costs and to provide for system renewal.

Many community water systems are faced with financial challenges. They must satisfy the requirements of recent legislation, meet increasing operating costs, and find money to replace aging infrastructure. Often revenues are insufficient to meet both operating costs and to provide for system renewal.

The solution may lie in a revision of the rates charged for water. Many community water suppliers in BC are undercharging for the water they supply. Water rates in BC are lower than in other parts of Canada, and substantially lower than in most other areas of the developed world.

Increasing rates may not be an easy thing to do. We all resist increases in our costs of living. However, supplying safe, reliable and sustainable drinking water involves a wide range of costs. When these costs increase, there should be a corresponding increase in the charges made to customers. Postponing the required increases can lead to problems: the gap between the revenues required for prudent management, and the revenues actually received, grows to the point where very substantial increases are suddenly required. This may alarm customers greatly!

A more sound approach is to adopt a systematic program of rate review, involving full communication with customers. The Sustainable Infrastructure Society is now able to help community water suppliers with rate reviews. We can arrange access to use of the WaterWorth™ rate-setting model. WaterWorth™ can be applied in a wide range of organizations: for example it has helped both a regional district and an improvement district to efficiently review water rates and taxes, and explore a range of rate-setting options.

We know that reviews of rates and taxes can be a challenging process involving technical, economic and community considerations. It can be done most effectively when experienced assistance is available. A rate review will provide you with substantial benefits. You have greater assurance that your revenues will enable you to provide safe, reliable and sustainable supplies to your customers for the foreseeable future. This is a winning situation for you and for your customers!

For more information, please click here to visit the SustainIS website.