Designing a Fairer, Greener Water Rate Structure for Saanich Residents

Saanich residents are feeling the pinch of substantially rising water rates, and they're set to rise even higher. In 2024, the District switched to a 50/50 billing structure, which splits fees evenly between connection and water usage. That raised fixed connection fee rates from $76 annually to $417 annually in 2026. Over the next few years, that fixed rate is set to go up to $684.

This 50/50 model disproportionately penalizes low water volume users and functions as a regressive tax. Furthermore, when half of a resident's bill is locked in as a flat fee, the financial incentive to conserve water is diminished. Those who conserve water are effectively forced to subsidize others' higher volume, discretionary water use. This system is unfair and creates inequity.

I believe that Saanich residents deserve better. One option that can achieve the same revenues as the current system is the tiered water rate system supported by a Revenue Stabilization Reserve (RSR). This model greatly reduces the fixed connection cost and sets usage tiers based directly on consumption. This model gives residents more control over costs. For example:

Tier 1 (Baseline Needs): The lowest cost per unit of water, covering essential daily cooking, cleaning, and basic hygiene. This protects affordability for every household.

Tier 2 (Moderate Use): Applies a standard rate to average indoor household usage, accommodating routine tasks like laundry, dishwashing, and light gardening.

Tier 3 (Discretionary Use): Charges a premium rate for high-volume, non-essential water consumption. This tier specifically targets heavy seasonal demands, such as filling swimming pools, washing vehicles, or summer lawn watering.

A Revenue Stabilization Reserve (RSR) would be established to create revenue predictability. This dedicated reserve acts as a financial cushion. In high-rainfall years when water usage drops, the district draws from the reserve to cover infrastructure costs without raising rates. Conversely, during dry years, surplus revenues from higher-tier usage replenish the reserve.

Moving to a tiered water rate system with an RSR achieves two important goals: it guarantees stable funding to maintain our water infrastructure and restores fairness and environmental accountability to our utility bills.