Water and wastewater rates here are under review due to lower-than-anticipated revenues since the municipality moved to metered billing last summer.
At its March 1 meeting, the Town of Minto council adjusted water and wastewater charges to make up for a massive shortfall in revenue as local residents reacted to a move to metered billing by cutting usage.
Minto treasurer Gordon Duff told his council the water system was “going under by $40,000 a month.”
“Certainly we’re seeing that our revenues are lower than our projected based upon since we put meters in, so we’re going through a water rates study as well to look at our water rates to see what adjustments we can make to both address expenses and revenues,” Mapleton CAO Brad McRoberts told the Advertiser in a telephone interview on March 10.
While McRoberts said he didn’t have figures to determine if Mapleton’s shortfall was comparable to Minto’s, he stated, “I suspect it’s the same trend that they’re seeing.”
McRoberts said lower-than-expected revenues are not uncommon when metered billing is first introduced.
“Typically what happens when meters come in is people have an immediate reaction to being billed and they reduce their consumption … Then it gradually increases over time as people get used to it … it might flatline eventually but typically, when it first comes in, people become very conscious of that.”
Provincial legislation requires municipal water and wastewater systems to operate on a cost-recovery basis, with no subsidization from taxes.
The township operates separate water systems and wastewater systems in Drayton and Moorefield. The Drayton system has about 800 users and Moorefield’s has 190.
Mapleton’s rate structure was devised following a study conducted by consultants Watson and Associates Economists.
McRoberts said the issue would come before Mapleton council once the information is compiled.
