Canmore residents are using less water and are paying more for it as a result.
Council passed its water and utility rate bylaws for 2011 with an increase of three per cent to both.
Manager of public works Andreas Comeau said in addition to decreases in offsite levy revenue, the utility is also experiencing decreases in consumption rates per account.
Both residential and commercial consumption of water has dropped 13 per cent since 2007 and has partially resulted in the need to increase rates in 2011 by eight per cent.
Comeau said rates charged, both fixed and variable, pay for the self-supporting utility to run, and decreased consumption results in less revenue.
“If water conservation is a goal, then we are doing well,” he said.
While success in conservation programs and initiatives is good news, said Comeau, some on council had trouble with charging more for using less.
“We are telling people to conserve water and their bills are going up… I find that tough,” said Councillor Ed Russell.
Coun. Gordie Miskow made a failed motion to postpone the bylaw.
“I am not sure this is the right decision,” he said. “This to me is putting a Band-Aid on a major wound.
“I would like more information and look at it over a two-year period.”
Mayor Ron Casey did not support the delay and pointed out part of the reason for the increase to rates is a new 10-year contract signed last year with Epcor, which runs the utility.
Comeau said the rate model has always planned on decreased consumption rates, but offset that reduction with increased revenues from new accounts.
He said when the model was created it was expected that increased growth and construction in the community would remain stable.
He added the spread between permanent and non-permanent residents was also not expected to be as great as it is.
The economic downturn and decreases in development in Canmore have also seen offsite levies collected plummet. That has resulted in a $1 million shortfall in the utility rate model.
As part of its 2011 operational budget, council voted to make up that amount through budget cuts and a 2.5 per cent municipal property tax increase.
Comeau said the utility rate used to be budgeted on an average account consumption of 20 cubic metres per year and now the budget assumes a 15 cubic metre amount.
The increase will mean a $52 cost for the average home.
