Saanich Transitions to Fixed Water Utility Fees for Greater Stability

Saanich is implementing a significant shift in its water utility fee structure by increasing the proportion of fixed rates. This change aims to enhance funding stability and minimize the risk of budget deficits in water and sewer services. According to a release from the municipality dated January 7, the decision was approved by the council in 2024, with plans to adjust the 2025 sewer and water budget accordingly.

The council’s direction stipulates that the budget increase will be applied to the fixed rate component, leaving consumption charges unchanged. This marks a departure from the district’s long-standing model of a 90/10 split, where 90% of fees were based on water consumption and 10% on fixed charges. Saanich officials have indicated that over-reliance on consumption fees has made utility revenues susceptible to shortfalls, particularly evident during periods of low water use.

Moving Towards a Balanced Fee Structure

The municipality plans to gradually transition to a more balanced 50/50 split between fixed and consumption-based fees, a model successfully employed by other municipalities. Officials estimate that achieving this balance will take approximately seven to ten years, with further adjustments expected in 2026. Each year, Saanich reviews its solid waste, sewer, and water rates to ensure that revenues adequately cover operating and capital costs.

In 2026, increases in utility rates are necessary to address rising expenses and higher regional service fees, including those from the Capital Regional District (CRD). The CRD has announced a 7.91 percent increase in its bulk water rate, resulting in an additional cost of $880,000 for Saanich’s bulk water purchases. This increase will be reflected in local utility rates.

For over 90% of Saanich households, the monthly increase in the fixed water connection charge is projected to be under $6.50. In terms of sewer utility fees, typical homeowners can expect a rise of about $7.31 per month, amounting to an annual increase of approximately $87.72. Additionally, Saanich has indicated that solid waste fees will also see increases, with households using both garbage and organics carts likely to pay around $6 more per trimester in 2026. This adjustment reflects higher disposal fees at the CRD Hartland landfill and increased costs associated with compost hauling and processing.

Supporting Infrastructure and Services

These adjustments are designed to support long-term infrastructure needs and core services while still promoting conservation through consumption-based charges. Residents have multiple options for paying their utility bills, including online payments, bank transactions, pre-authorized withdrawals for property owners, mail, or through the 24-hour drop box at Saanich Municipal Hall.

Late payment penalties, which had been suspended during the Canada Post strike, have now been reinstated for payments received more than 45 days after the billing date. Residents seeking more information on utility billing can visit saanich.ca/utilitybilling.

Through this strategic transition, Saanich aims to provide a more stable and sustainable water utility funding model, ultimately benefiting the community while encouraging responsible water use.