Lynn Lau
Northern News Services

Fort McPherson (Apr 08/02) - Saddled with an expensive new water system, the hamlet is looking to hike the water rates for commercial and government users.

The proposed increase would see the government rates go up from 3.54 cents per litre to 4.14 cents per litre. Commercial rates would go up from 0.93 cents per litre to 1.16 cents per litre.

The bylaw passed first and second readings at the council meeting March 26 and is scheduled for its third and final reading April 30.

In the fall, the hamlet started trucking water to the treatment plant from Deep Water Lake 25 kilometres away. The new system cost more than expected because the conversion was fraught with problems, from broken-down water trucks to frozen parts at the pump house. Water usage was also higher than expected, requiring the hamlet to hire an extra driver two months ago.

Even if the rate increases are approved, the hamlet will still not be able to recover the costs of the water system through user fees alone.

"If we adjusted our rates to give us a balanced budget, the rates would be unrealistic," says mayor Rebecca Blake.

The hamlet will be asking the Department Municipal and Community Affairs for help to cover the extra costs. Last year, MACA provided $300,000 of funding to the community to help cover the water program. Blake says the hamlet will likely need a similar amount this year if it wants to avert a deficit.

Residential users, who have already had two rate increases in the last year and a half, would not be affected.