Saanich Implements Fixed-Fee Water Rate to Stabilize Budgets

The District of Saanich has approved a significant change in the way residents pay for water, shifting a larger portion of utility costs to fixed rates. This decision aims to stabilize the district’s budgets and mitigate the risk of future deficits.

In 2024, the Saanich council ratified the shift, which will apply recent increases in water and sewer rates primarily to the fixed component of residents’ bills while maintaining current consumption charges. The long-term objective is to transition from the district’s traditional 90:10 split between usage and fixed fees to a more balanced model of 50/50, similar to that employed by many municipalities.

Transition Timeline and Financial Impact

Saanich officials estimate that the transition to the new rate structure will take between seven to ten years, with further adjustments planned for 2026. This shift comes as the district faces rising operational costs and increased regional fees. The Capital Regional District (CRD) will raise bulk water rates by 7.91 percent in 2026, which is expected to add approximately $880,000 to Saanich’s water budget.

The changes in water rates will minimally affect most households. For over 90 percent of residents, the monthly fixed water charge will increase by less than $6.50. Additionally, sewer fees will see an uptick, with the average homeowner expected to pay around $7.31 more each month.

In conjunction with these adjustments, solid waste fees are also projected to rise slightly. For households utilizing both garbage and organics carts, proposed changes for 2026 would result in an increase of about $6 per trimester bill. This rise reflects an increase in disposal fees at the CRD Hartland landfill, which will go from $135 to $142.50 per tonne, along with heightened compost hauling and processing expenses.

Approaching Budget Process

The proposed utility rates for 2026 will be submitted to the council for approval as part of the annual budget process. As Saanich navigates these necessary adjustments, officials emphasize the importance of creating a more sustainable financial framework for water and utility services.

This strategic shift not only addresses immediate financial demands but also positions the district for more stable fiscal management in the future. The community can anticipate ongoing discussions regarding these changes as implementation progresses.