City declines bulk water deal with PRRD for rural residents

The Regional Directors had written City Council proposing paying the City $1 million over the next ten years, in exchange for rural residents paying the same rate for bulk water as city residents. They were each willing to allocate $50,000 from their annual Fair Share funding each year for the next ten years, as capital payments to go towards the extra costs of upgrading the City’s water system. 

A report by City staff raised a number of questions about the possible agreement, which the letter does not sufficiently answer. Based on last year’s rural water consumption at the bulk water station, the annual $100,000 contribution would equal to 28.25 cents per cubic metre. 

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Currently city residents pay $1.12 per cubic metre for water, while rural residents pay $3.00 per cubic metre for bulk water. That would mean a $1.88 reduction in rate, for the 28.25 cent payment.

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