The Town of Drumheller is looking into reviewing their agreement with the Drumheller Institution for water and sewage disposal.
Mayor Terry Yemen said he would like to see the water rates brought in line with the cost of services in 2012, and says the existing calculation needs to be changed.
“It is time to negotiate. It is a whole process,” said Yemen. “We served them notice that we have sit down and talk.”
He said he is not aware of the last time the agreement was negotiated. There are agreements going back to 1963, 1965 and 1978.
“We have to come up with something. In fairness, we cannot just expect to stay at a dated rate,” said Yemen.
About two years ago, the town began to adhere to a cost recovery model for utility rates. The current rates the Institution is charged, the town is not in the position to recover the cost of treating water and wastewater, as well as maintaining the infrastructure that delivers the service to the institution.
