City of Nelson staff are proposing rate increases for resource recovery, water and wastewater services to ensure sustainable utility services. The proposed rate increases are: a $25 annual increase for resource recovery (from $125 to $150 per year); a 4 per cent increase for water utility rates and a 3.5 per cent increase for wastewater rates due to inflation; and an additional 3 per cent increase for water and wastewater rates to help fund much needed upgrades to capital infrastructure for water supply and wastewater treatment. For an average Nelson household, this would mean an annual increase of approximately $100, or $8 per month, for the Water, Wastewater and Resource Recovery rate increases.

These utility rate increases are needed to address increasing operational expenses, to deliver critical capital replacement projects and to support the aspirations identified in Nelson Next by protecting water, reducing waste and lowering emissions.

The water and wastewater rate increases are needed to fund operations and capital replacement, given the significant generational asset renewals scheduled for the next 10 years. These multi-million dollar capital projects include the Five Mile Pipeline Replacement project (estimated $13M) as well as the Wastewater Forcemain and Treatment Plant Upgrades, which preliminary estimates from Phase 1 of the Liquid Waste Management Plan put at $90M to $120M. These capital projects are required as these critical assets are nearing the end of their operational lifetimes. The City has been building reserves for these major capital expenditures, with a combined balance of $22M at the beginning of the year, although 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.

The proposed resource recovery fee includes replacing grant funding that supported launching the Pre-treated Organics Program and that is needed to continue running the program. The organics program will continue into 2025 as the City continues to monitor the program’s effectiveness, look for opportunities for improvement, and support residents in further reducing their organic waste. The proposed fee provides for additional waste collection and recycling investments, addresses inflationary costs, and includes investing to modernize the waste collection fleet towards a less manual process. 

Council considered the proposed rate increases at the City Council meeting on December 3, and directed staff to prepare the Fees and Charges Amendment Bylaw to reflect the 2025 rates for Water, Wastewater, and Resource Recovery. The proposed rate increases will come back to Council for further consideration and adoption in December 2024.

If Council approves the rate increases, they would be effective as of January 1, 2025 and included in the utility rate invoices that will be sent to residents in February 2025.

For more information on the Pre-treated Organics Program, including the program evaluation and recommendations for improvement, see the attached Pre-treated Organics Program Backgrounder. To learn more about projected Resource Recovery costs over the next decade, view the proposed Resource Recovery Budget (2025 to 2034).

To learn more about the proposed rate increases and where the funds would be directed, see the Council agenda item or watch a recording of the December 3 Council meeting.