The Town of Drumheller was successful in striking a deal with the Drumheller Institution that will see a fair rate for water and wastewater.
For years the Town of Drumheller has been providing water and sewer service to the Drumheller Institution. However, the rates for the utility had not been renegotiated since 1978.
In 2011, the institution was charged $0.726 per cubic metre of water and $0.43 for wastewater based on 80 per cent consumption. In the near future the penitentiary will be paying the same rates as Drumheller residents.
Mayor Terry Yemen said they had achieved an agreement at the local level with the institution, and this week learned that it had been approved by Corrections Canada
“It is going to be great for the people of Drumheller,” said Mayor Yemen.
Mayor Terry Yemen said this could bring the town an additional savings of approximately $170,000 per year. Because the Town of Drumheller operates its plants as a self-sustaining utility this means it will add up to savings on the part of Drumheller rate payers.
“It means that’s $170,000 that Drumheller residents won’t have to pay,” said Yemen.
This week the Town of Drumheller will be voting on new water and wastewater rates. Under the proposal, for water, the base rate for meter will go up by $0.50 to $10.50 for a standard residential meter and the water rate will go from $1.32 per cubic metre to $1.36 per cubic metre. The wastewater base rate will go up to $11.50 and the rate per cubic metre will go up to $1.85, based on 80 per cent consumption.
Yemen said these new rates were formulated in light of the additional funds coming from the new rates.
“It kept it reasonable, that’s for sure, and it will help in years to come,” said Yemen.
He added with the expansion of the Drumheller Institution, it could lead to more consumption, and that could help the town’s bottom line.
“The more we sell, the better we can keep the price, so there may be more of a spin off from this,” said Yemen.
The Drumheller Institution will pay the same rates for water and wastewater and will be classified as a Group 3 Meter, with a base cost of $490 per month for water and $278 for wastewater, if the new rates are approved.
