News

Changes to Water & Wastewater Rates

Effective October 1, 2025
Your November 2025 utility bill will reflect the new water and wastewater rates.

How does the Town’s water and wastewater system work?

• Water: Our water comes from Lac St. Cyr. It’s pumped to the Water Treatment Plant, cleaned and treated, then distributed through underground pipes to your home.
• Wastewater: Used water from your home flows through the sewer system to the Wastewater Treatment Facility. After treatment, it is safely released back into the environment.

What are the costs of running the water and wastewater systems?

The cost of running the system includes:

• Insurance for facilities, vehicles, and equipment
• Staff wages to operate and maintain the system
• Power, gas, and fuel
• Debt payments for past upgrades
• Materials and supplies needed for day-to-day operations

The Town switched to “User Pay – Full Operating Cost Recovery” Utility Rates in 2024. What does it mean?

• Full Cost Recovery: All water and wastewater costs are covered by utility fees (in the past, it was partially covered by property taxes)
• User Pay: You pay based on how much water you use, heavy users pay more, while those who conserve water can lower their bills
• Annual Review: Rates are reviewed annually to stay fair and keep the system properly funded.

Why did the Town switch?

• More transparent method to track costs and funding that ensures there are enough funds to operate our systems properly
• It ensures fairness to residents as all costs are covered by utility fees (as opposed to partially funded by general taxes)
• It provides residents with an opportunity to control their utility costs by managing their usage

What is included in my Utility Rate?

• Service Charges: Cover the costs that don’t change with how much water flows through the system (like insurance)
• Usage Charges: Cover the costs that depend on how much water flows through the system (like power and fuel)
• Replacement Charges: Cover the partial cost of future replacement of the water and wastewater systems

Why did the Town add the Replacement Charges to our utility bill?

Just like furnaces or hot water tanks, our water and wastewater systems wear out and eventually need replacement.

• In the past, these upgrades were funded mostly through provincial grants and borrowing.
• With less provincial funding available, Council created a Reserve Fund to be better prepared for future replacements.
• The Reserve Fund acts as a “Savings Account” for funding part of the future replacement and improvements.
• Replacement charges on your bill are your contribution into this “Savings Account” to help pay for part of the upgrades.

Are the new rates different from the last year?

The 2025/2026 rates are slightly higher than last year because:

• Insurance costs have risen.
• A major maintenance project was completed at the Water Treatment Plant.

Example: Monthly Bill for a Household Using 10m³ of Water

QUESTIONS? Please call 780-645-4481 or email at utilities@town.stpaul.ab.ca