Water rate hikes rejected

by Glenn Taylor
Northern News Services

INUVIK (Oct 06/97) - "I don't want to go down in history as the mayor that stood by and watched as the utilidor system deteriorated beyond repair."

So said George Roach, mayor of Inuvik and member of the utilities planning committee, after he had lobbied council to accept water rate increases to help raise money for future repairs and improvements to the system.

Council again adamantly refused the proposal after a passionate debate.

"Higher water taxes?" said a defiant councillor Vince Sharpe. "We're already looking (as a council) at raising taxes this year. There's not going to be anything left of Inuvik if we keep doing this."

The IUPC passed a motion in May to double water and sewage rates for some customers, from $25 to $50. Council disagreed with the May plan, voting instead to retain the $25 minimum fees and the maximum charge caps, and locking in those rates for one year.

The IUPC's latest proposal is to bump up the minimum rate from $25 to $42.42 per month, and the maximum rate from $123.75 to $210. The domestic water rate per litre would jump from $.0033 to $.0056, the commercial rate from $.0044 to $.0063, and the government rate from $.0052 to $.0070.

Roach pointed out to council that, prior to 1995, before water metres were installed, Inuvik residents paid a flat rate of $55 per month for service. The new minimum, at $25, resulted in a "drastic drop in revenue."

What is pushing the IUPC to raise rates is news that only $27,000 was contributed to the utilidor replacement fund last year, established to fund future repairs and expansions of the system. At least $750,000 must be contributed annually, according to IUPC estimates.

The IUPC was established in 1990 to administer the utilidor system. It is composed of two members each from the NWT Power Corporation, Municipal and Community Affairs and town council.

The IUPC is now hoping within two years to get an increase in GWNT subsidies and to implement a number of cost-saving measures to get the utilidor system under control, said Roach. He believes the issue must be settled somehow, and soon.