A controversial new proposed bylaw which would increase Flin Flonners’ water and sewer utility costs if passed was the subject of a public meeting.
The bylaw, proposed by the City of Flin Flon and sent to the Manitoba Public Utilities Board (PUB) for approval, was the subject of a public hearing at the Flin Flon Community Hall August 27. Members of the provincial PUB board - panel chair Shawn McCutcheon, Irene Hamilton and Marilyn Kapitany - chaired the meeting.
The City of Flin Flon was represented at the meeting by chief administrative officer Lyn Brown, along with Dale and Travis Lyle of Way to Go Consulting, a firm hired by the City earlier this year to conduct a rate study on Flin Flon’s water and sewer system. Members of the PUB board laid out ground rules for the meeting, including rules and guidelines for comment.
The City’s original application to the board was in two parts - first, to approve two years of incurred operating deficits, combining to around $1.46 million, then to apply for revisions to the City’s existing water and wastewater rates. The deficits were incurred in 2018 and 2022, with no extra deficits added on in either 2023 or forecasted to be added this year. Manitoba municipalities have to break even on their utilities as per the Manitoba Municipal Act - if they don’t, they can either pay the deficit off with surpluses or petition PUB for rate increases. The City has no utility surplus, forcing the second option into play.
To pay off those deficits, the City has proposed a fee schedule for water and sewer payments that would include increases in each of the next five years. The plan to pay the deficit costs would come from the hikes and a rate rider on water and sewer fees, starting in 2025. The rider is planned to stay in effect for either five years or when the extra costs owing are paid off - whichever comes first.
According to the proposed rates and rider, an unmetered home using 5,500 gallons of water each month would see an increase of $9.30 a month starting next year, for a total of $140.96 in charges per month.
Those increases will see that same home pay more in each of the coming years - $154.50 a month in 2026, $168.04 a month in 2027 and $181.58 in 2028, more than a $40 per month increase over the proposed 2025 level.
Discussion at the meeting often turned from the deficits to inefficiencies within the City’s water and sewer system itself. According to the Lyles, Flin Flon’s water system includes a massive amount of unaccounted-for water - up to 54 per cent water loss throughout the entire system. The information to back up the claim, said the Lyles, is scarce and based partially on assumptions made on usage - most people in Flin Flon do not have water meters, making it difficult to know for certain exactly how much water is lost.
Funding sources that could be used by the City to cover the cost of offsetting the deficit have also taken a hit - namely the Hudbay grant-in-lieu payment. Paid each year by Hudbay instead of standard property taxes, the grant-in-lieu has made up a sizable amount of the City’s budget, but after shutting down much of its local operations in 2022, the share paid to the City each year has dropped.
Another issue, said the Lyles, is the nature of Flin Flon’s water system - with pipes throughout much of town running above ground in sewer boxes (now officially called utilidors) instead of below ground, expenses can be higher to heat the water.
“One thing to note, for lack of a better word, is the unique nature of Flin Flon utilities. A lot of these operating expenses are just higher. That’s sort of the nature of the beast, relating to heating the water and that sort of thing,” said Travis Lyle.
Response
Reaction to the proposed changes was overwhelmingly against the move. Over a hundred attendees came to the meeting, with some speaking up against the change and getting their objections noted by the board. One attendee, former city councillor Skip Martin, registered in advance with the board to speak at the meeting, saying the proposed rate increase was excessive.
“The City’s request for what amounts to a 73 per cent increase in utility rates over four years is, in my opinion, ridiculously excessive in relation to people’s income,” said Martin.
“It’s ridiculously out of touch with the economic reality of most people. If the City is forecasting a large expenditure in utility expenses, then it should pay for it the same way the water and wastewater plants were paid for - namely, by debentures.”
During his speech, Martin also requested that the City look into obtaining grant funding for future repairs or construction on water and sewer systems. The Town of Creighton was recently approved for similar work, with funding through the Investing in Canada Infrastructure Program, a federal and provincial grant. The work will cost over $3 million in total, but due to receiving the grant, the Town of Creighton will only pay around $250,000 - the rest will be covered by the grant.
“Grants could be applied for over the next four years to help pay off anticipated projects, such as was done recently in Creighton,” Martin suggested.
Martin also called for more water meters to be installed in Flin Flon, for a pair of reasons - one, to more accurately determine how much water is used and where, and second to allow for lower minimum rates. Martin said that water rate increases in other communities have included lower minimum rates for water usage, which would allow for people to save more money on their utility bills by using less water. Most homes in Flin Flon do not have water meters, meaning similar savings would be tough to institute.
“Without meters, taxpayers of Flin Flon have to rely solely on the City to help them live within their means - and a 73 per cent increase in utility rates is an action completely oblivious to the fiscal reality of its citizens,” Martin said.
“This rate increase is excessive and should not be allowed. Instead, the board should order the city to submit a new rate increase, more in line with other Manitoba municipalities.”
Other speakers at the meeting said the proposed bylaw would make it difficult for seniors on fixed incomes and young families to pay for utilities, as well as saying the increase could make it more difficult to live in Flin Flon in the short and long-term.
“We’re being priced out of this town,” said speaker Bernice Stoltz.
“I’m looking at retiring within the next couple of years and I’m thinking, ‘Do I move to the lake? Do I move to Creighton?’ We’re being priced out - we can’t afford to stay here.”
Following the meeting, PUB members will deliberate on the proposal from the City and public feedback. A decision from the board is likely to come later this year.
