Melville residents are worried that the cost of water will continue to rise.
“It’s one of the reasons we’re leaving Melville,” said Deanna Doepker.
“(The water rates are) pretty high and they’ve been going up over the past couple years.”
The water rates are increasing because Melville is building a new water treatment plant. The current water treatment plant is at the end of its operational lifespan.
The new plant is expected to be online by early 2020 and will cost about $40 million, of which Melville will pay 20 per cent. The federal and provincial governments have contributed $10 million to the cost.
Mayor Walter Streelasky says that the water rates are being gradually increased so that residents aren’t shocked by fewer and more dramatic rate increases.
SaskWater is constructing, and will run, the new plant. In 2016, the provincially-owned company assumed control of the current water plant. It sells water to Melville and the city then charges residents for the water that they use.
On Jan. 1 the minimum utility rate was raised from $96.23 to $114.50, meaning that any Melville resident pays $114.50 regardless of whether they use a drop of water.
Streelasky says that the arrangement will free up city revenue.
“It removes the onus on us. And therefore, by giving up control of our water plant, we can use our financial resources to do different things,” he said.
SaskWater vice-president of business development and corporate services Jacquie Gibney says that the cost of water ultimately falls on the city.
“Because it is still under construction and hasn’t been commissioned (the construction costs) are not part of our rate and it won’t be charged to the city until it is operational and commissioned in 2020,” she said.
Gibney did say that she expects the water rates to increase when the new plant is operational.
