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Letter to Saanich Council on utility flat rate increases.

By Roel Hurkens,

I am writing to Saanich Council on the issue of water and sewer utility flat rate increases. In October 2024, Council approved a change to utility flat rates for 2025, and may soon be meeting again to discuss the rate changes for 2026.

For 2025 Council approved, by a 7-0 vote, a change in the revenue model for water and sewage usage from 90/10 for consumption/flat rates to 50/50. For this to happen, the flat rates will have to eventually increase by 800% over 2024 rates (more if consumption rates go up as well). This change to the revenue model was voted at the October 2024 Council meeting, at which Director of Engineering Harley Machielse advised Council before the vote that the change would have a net zero impact to taxpayers. 

Perhaps Mr. Machielse actually believed in his advice to Council, or perhaps he received incorrect information from staff. In any case,  an 800% increase is certainly a novel yet incorrect interpretation of ‘net zero’. After writing in June to the councillors who voted at this meeting, I heard back from several who stated that they would not have voted for the motion or would have discussed it more fully, had they realized that the advice they were given was not accurate.

Saanich staff seem to have created an FAQ page on the web, which attempted to address the interpretation of ‘net zero’ as presented in the October 2024 meeting, but it contradicts both the minutes of the meeting, and the video of the meeting at which Mr. Machielse clearly states his advice to Council.

What is the effect of the new flat rates for water and sewer connections? For a typical utility account with a 19mm water service, the increase in 2025 is from $76 annually (2024 rates) to $255, a 236% increase! Eventually, the new revenue model will see an increase from $76 annually to about $683 (nine times as much!), or an increase of about $607 (or 800%), even more if consumption rates are also to increase. If such an increase would be applied to a typical property tax bill of $5000, it would represent a 12% hike! But as a utility fee, it receives far less attention. In my case, it will almost double my utility bill!

I hope that Council will carefully reconsider the revenue model for utilities, when they approve the new flat rates for 2026 and beyond. The increases to the flat rates are simply too onerous. Yes, the flat rates should increase, but hopefully no more than cumulative inflation since they were last changed. Perhaps the consumption rates are the ones that should go up, to encourage those who waste water (watering the lawn, long showers, washing the car, etc.) to consider conservation instead.

Thank you for your attention to this matter.

Roel Hurkens