The City of Nelson has proposed its 2025 rate increases for resource recovery, water, and wastewater services.
For resource recovery, city staff have proposed a $25 annual increase (from $125 to $150).
Chief Financial Officer Chris Jury told Council on Tuesday that 60 per cent of this increase will cover inflationary costs associated with labour, collection, and equipment.
“We’ve had a five per cent increase in labour costs, the third consecutive year of a ten per cent increase in tipping fees, and other general inflationary costs, which account for 60 per cent of the increase” said Jury.
“Resource recovery pays for our operating costs—your fuel, maintenance, oil changes, and ensuring there’s enough funding to replace vehicles at the end of their life. We’re just trying to get to a place where, when we do go to replace those garbage trucks, there’s enough in reserves to cover the cost.”
Staff also recommended extending the pre-treated organics pilot program until September 2025 to allow for additional data collection and analysis. The program, previously funded by federal and provincial grants, will now be supported through the city’s resource recovery budget.
A total increase of seven per cent has been proposed for water utility rates, and 6.5 per cent for wastewater rates. Of these increases, three per cent for each service will help fund several multimillion-dollar critical infrastructure upgrades for the city’s water supply and wastewater treatment systems.
These projects include the Five Mile Pipeline Replacement project (estimated at $13 million), as well as the Wastewater Forcemain and Treatment Plant Upgrades, with Phase 1 of the Liquid Waste Management Plan estimating costs between $90 million and $120 million.
“The City has been building reserves for these major capital expenditures, with a combined balance of $22 million at the beginning of the year. However, projected costs continue to rise due to inflation and increasing regulations. This budget recognizes that additional capital reserves will be required to fund these generational assets,” said a statement from the City.
For the average Nelson household, these combined increases would cost an additional $100 per year, or roughly $8 per month.
The proposed rate increases will return to council for further consideration and final adoption later this month. If approved, the new rates will take effect on January 1.
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