Like residents in Moorefield, homeowners in Drayton could soon be facing water rate increases, although the Drayton hikes are far less significant.
Last week Mapleton councillors unanimously approved a financial plan for the Drayton system, with the proposed water rate to climb about 1.3% this year and climb almost 11% over the next five years.
On June 8, councillors voted unanimously in favour of another plan that would see the Moorefield water rate go up 19% this year and rise by 37% by 2015, although nothing is official for either water system until the township passes bylaws to change the rates.
Last week finance director Mike Givens told council the current Drayton rate of $34.28 is “marginally below the required rate for full cost recovery.”
While Moorefield has only 202 billing units within its system, Drayton has 729 billing units and is further aided by “consistent growth,” Givens told council.
That results in Drayton water rate increases that are not as significant as those in Moorefield.
In 2010, Givens estimates the system’s total expenditures will be $335,745 with $31,815 in total revenue, leaving $303,930 to be recovered from water users and resulting in a water rate of $34.74. The amount to be recovered from users is expected to climb annually over the next five years, reaching $354,878 in 2015 (779 expected users).
The water rate will climb at a corresponding rate – between 0.9% and 5% each year – culminating in a 2015 rate of $37.96.
