(Pixabay)

Penticton residents can expect utility rates to rise in 2021

Late utility bills will also incur a two per cent penalty

Penticton residents can expect to see their utility bills go up next year.

How much exactly bills will be increasing will be decided in the upcoming budget process for 2021.

Looking ahead, the city is predicting that projects affecting water and sewer will leave a projected funding deficit that will need to be met.

In addition to increases to utility rates, the city is considering changes to its development cost charges and increased borrowing.

The development cost charges bylaw is planned to be revised and updated in 2021, after its last substantial revision in 2007.

The city is already going forward with a penalty model for utility payment, with unpaid bills incurring a two per cent penalty. The motion to approve that change was supported by the mayor and all councillors except Councillor Judy Sentes.

READ MORE:City of Penticton to provide 10 per cent utility discount

The changes to the actual utility rates would be in addition to the rate changes planned to go into effect after the 2019 utility rate review.

The wholesale rate for electricity from Fortis B.C. was originally assumed to increase by 2.2 per cent in 2021, but is now expected to go up by five to seven per cent. This would leave the city with an increase in their expenses by an estimated $1.1 million.

After the 2019 review, the rate for sanitary sewer utility was planned to increase by 9.4 per cent in 2021, however even with this increase, the city is expecting revenue to be from $500,000 to $700,000 below budget.

The rates for treated water and agricultural water were planned to increase by .6 per cent and four per cent respectively in 2021. Those rates are also expected to increase.

In addition to changes to utility rates and development cost charges, the city is looking at increased borrowing and grant applications to meet their other expected project costs.

Several projects that the city needs funding for will likely be worked in phases over multiple years to spread out their costs, including the lake-to-lake cycling route from 2021-20245, work on the Kinney Ave. intersection in 2022, revitalization of downtown scheduled for 2024, and work on Penticton’s creeks from 2022 to 2029.

To report a typo, email: editor@pentictonwesternnews.com.


@PentictonNews
newstips@pentictonwesternnews.com

Like us on Facebook and follow us on Twitter.

City Council

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Okanagan whisky lottery adds new twists

Winners of Okanagan Spirits’ Laird of Fintry lottery announced in four batches beginning Sept. 28

QUIZ: Do you know what’s on TV?

Fall is normally the time when new television shows are released

Penticton Vees return to action with 7-0 win over Salmon Arm

The Vees will get right back to it tomorrow night

Unofficial holidays: Here’s what people are celebrating for the week of Sept. 27 to Oct. 3

World Farm Animals Day, Drink Beer Day and Virus Appreciation Day are all coming up this week

United Way celebrates seven decades of impact in Southern Interior

Organization sees issues with poverty, mental health and addictions, heighten during the pandemic

B.C. records 98 more COVID-19 cases, most in Lower Mainland

One new senior home outbreak, Surrey Memorial outbreak over

A (virtual) walk around the world by 88-year-old B.C. man

George Doi says it’s simple: ‘I like walking’

End of CERB means uncertainty for some, new system for others

As of a week ago, the CERB had paid out $79.3 billion to 8.8 million people

West Kelowna Warriors complete sweep of Vernon Vipers

Warriors edge Snakes 2-1 as Okanagan Cup BCHL exhibition tournament begins

Horgan, Wilkinson trade barbs over MSP premiums, health care at campaign stops

Horgan called a snap election for Oct. 24 earlier this week

Public input sharpens vision of Oyama Ithmus Park

Proposed project to shape the long-term future of waterfront land in Lake Country

COVID-19 outbreak declared at Kelowna church service

Attendees of Calvary Chapel Kelowna’s Sept. 13 morning service may have been exposed

Kelowna man injured during arrest sues RCMP

Supreme Court civil claim alleges Dustin Blondin was the victim of an ‘unprovoked attack’

PHOTOS: Ghost sighting in Vernon’s Polson Park

Mom and daughter photoshoot brings joy and laughter to bystanders

Most Read