By Lara Fominoff @LaraFominoff on Twitter

Recycling & waste, water, electric utilities present 2019-2022 proposed budgets and rate increases

Sep 25, 2018 | 11:40 AM

LETHBRIDGE – Ahead of Operating Budget deliberations in November, three City of Lethbridge departments presented their four-year budgets to the Finance Committee Monday, Sept. 24.

Each department was given a mandate by council to deliver the same levels of service over the next four years (2019-2022), but without any further funding increases. The departments all get their money from the $150 million Utility Fund, which makes up part of the $380 million total budget.

To deliver those services, there could be some rate increases beginning in January, and continuing each year over the next four years.

Committee Chair Jeff Carlson explains.

“Our utilities… pretty much they want to be break-even. They’re not a revenue generation for the city, by and large. And so, they do a very strenuous process of budgeting what the impacts are going to be. We know there’s the carbon levy that’s changed things, energy prices are going up and down and all over the place. Gasoline prices are up and down. We try and keep them as close to the bone as possible. They’d rather be a dollar over, than five dollars under because then we’ve got to go back and find that money somewhere from ratepayers.”

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Over the next several weeks, there will also be four-year budgets presented by Fire/EMS, Lethbridge Police Service, snow removal, libraries, parks operations, transit and other groups. The money for those services will come from the $230 million General Fund.

The following is a basic breakdown of the proposed utility rate increases presented by each department.

Waste and Recycling Services

There are 37,000 residential and 650 commercial customers in Lethbridge. Because the new blue bin program will be rolled out to all residents in 2019, there will be an increase in waste collection rates if approved by council equivalent to about $7 per month.

2019, 2020 – 2022

• Residential Waste Collection –5 bag cart – 2019 – $20.60/mo., 2020-2022 – $21.10/mo.
• Residential Waste Collection – 3 bag cart – 2019 – $18.85/mo., 2020-2022 – $19.35/mo.
• Waste Program Fee – 2019-2022 – No change
• Waste Reduction charge – 2019- 2022 – No change
• Commercial Collection – 2019-2022 – 4% increase each year

To make up for the cost of building an MRF or Materials Recovery Facility, there could also be an increase in landfill tipping fees as follows:

• Mixed Solid Waste – 2019 – $105 per tonne, 2020-2022 – $115 per tonne
• Special Waste – 2019- $120 per tonne, 2020-2022 – $130 per tonne
• Recyclable Shingles – 2019 -$55 per tonne, 2020-2022 – No change

Industrial, Commercial and Institutional rate changes will be announced in January of 2019 and implemented in July 2019.

Waste and Recycling Manager Joel Sanchez says they’ve been working on the budget for the better part of the last year.

“It has been a long work in progress, especially since we are having a new program being delivered to the residents. We have the curbside recycling that is kicking in, in the spring of next year. We needed to make sure we consolidated all of the elements.”

Water, Waste Water and Storm Water

Manager Doug Kaupp explained to the Finance Committee that there needs to be an increase in fees as well.

The fee increases could be the same whether the customer is residential, commercial, industrial or regional.

The budget proposal includes a 2 per cent increase for water management each year, from 2019-2022.

The waste water management proposal includes a 2.5 per cent increase each year from 2019-2022.

That means for the average home that uses 20 cubic metres of water per month and creates 15 cubic metres of waste water, a $1.17 increase.

2019 revenue requirements are just shy of $25 million, while waste water requirements will be just over $17 million.

Electric Utility Rates

The City of Lethbridge has about 38,000 residential and 2,600 commercial customers.

In 2018, Transmission Access Rates, which are regulated by the Alberta Utilities Commission, decreased by about 20 percent. However, according to the 2019-2022 budget proposal, those rates could go back up again.

Distribution Access Fees, which are regulated by City Council, also decreased a few percent for some customers in 2018 but could rise slightly in early 2019.

Electric Utility Manager Steward Purkis told the Finance Committee that in 2019, they are recommending a 1 per cent increase in Distribution Access Fees, and a 15 per cent increase to Transmission Access Rates.

Over the course of four years, the increase to DAFs would average about 1.35 per cent, while the TARs would average out to about 7.73 per cent.

That means, for the average residential or small business bill using 650 k/Wh per month in 2019, the DAF would be an extra 38 cents and the TAR would be another $3.06.

For more information on the proposed increases and the proposed budgets and initiatives, go to

 https://www.lethbridge.ca/City-Government/Agenda-Minutes/Pages/default.aspx