Water rates in the Municipal District of Lesser Slave River are “significantly higher” than in other northern Alberta communities, according to a report given to councillors at the Apr. 27 council meeting.
The report compared rates for a residential user consuming 28 cubic metres of water per month.
In Lesser Slave River, a user pays a flat rate of $59.66 per month and a variable rate of $0.91 per cubic metre. This would work out to $85.14 per month.
In other communities, the monthly cost for the same amount of water ranged from a low of $23 per month in the Municipal District of Peace River to a high of $62.05 in the Municipal District of Fairview.
Councillors requested the information after Southshore residents complained about a recent increase in the water rates.
Councillors also received a petition signed by 140 residents stating that the rate is too high.
Since a previous council decided in 2000 to move towards a 100 per cent user pay system, the municipality has been reducing the subsidy on water rates. Before the most recent water rate bylaw was passed, the subsidy rate was 35 per cent, but it has now gone down to 25 per cent.
Chief administrative officer Allan Winarski, who prepared the comparison, told councillors that it was difficult to determine how much other municipalities are subsidizing their water rates.
“Is there a reason the rates should be up to 300 per cent higher than others?” asked Coun. Brian Rosche.
“We have a vast area with isolated water facilities. We need the facilities to make the water, but we don’t have the economies of scale,” said Winarski.
Some of the communities in the comparison are using dugouts and untreated water, he noted.
Director of Field Services George Snider told councillors that local facilities are better equipped than those in other communities to meet provincial environmental regulations in the future.
“Maybe we’ve just gone too fast in trying to reduce the subsidy rate,” said Reeve Denny Garratt. “Maybe that increase should have been spread over twice as long.”
He expressed support for the goal of sustainability through lowering the subsidy rate, but asked councillors to consider rolling back the water rate to what it was before the most recent increase.
“It appears to be the straw that has broken the camel’s back. I suggest we take the straw off and see if it can run again. We can’t overload our ratepayers to the point of revolt,” said Garratt.
Another possibility discussed was waiting until municipal staff could prepare more research on rate options.
“If we roll back the rates people will say we don’t know what we’re doing. I’d prefer to examine the possibilities first,” said Coun. Brian Rosche.
He agreed that the rates should be lowered, but didn’t want to put council in a situation where it would roll back the rates only to change them again after staff returned with research on the impact.
“If you show this (comparison) to the taxpayer, there’s no way you can explain this,” said Coun. Ken Olsen.
Judy Hogberg, director of finance for the municipality, told councillors that if they decided to roll back the rate to its previous level, there would be an $87,000 shortfall in the budget.
“I suggest we roll back immediately... The intention of it is to recognize the fact that our rates are too high,” said Reeve Denny Garratt.
The motion to roll back the rates, however, was defeated.
Council moved instead to ask staff to prepare a list of rate options that would reduce the cost. The earliest a set of options could be returned to council would be one month, councillors were told.
Southshore residents concerned about the rates for wastewater connections will not have to worry about paying at all for the time being.
In a Mar. 30 article in The Leader, it was stated that prior to connecting to the Southshore Wastewater treatment facility, residential, commercial and institutional users will pay $19.10 per month for sewer service and after the commissioning of the facility, the rate will go up to $23.32.
The article should have stated that prior to the commissioning of the treatment facility, users across the municipality with a wastewater connection would pay $19.10 per month and after the commissioning, $23.32 per month.
Southshore residents will not start paying the rates for a wastewater connection until after they have a functioning connection to their homes.
Grizzly Ridge Honda will be the first business open for business south of Hwy. 2 in Slave Lake. At least that’s how it looks after Town council approved a development agreement with Mouallem Developments last week.
Joey Mouallem is leasing a two-acre lot to the Honda dealer. Construction of a 10,000 square-foot shop is expected to begin this week and be finished by late June. It’ll be a nice change for owners Glen and Chris Monaghan, who’ve been coping with a growing business in far too small a space for the past few years.
“I’m predicting about a 30 per cent increase in business,” says Glen. “I think that’s conservative.”
The current Honda shop has about 4,600 square feet on the ground floor of its 3rd Ave. and 3rd St. N.W. location. Parking is a big problem there, as is storage. The new site will solve all those issues, as well as add a great deal of visibility. Monaghan says there are people who come from out of town looking for the shop now and give up without finding it. That won’t happen in the new location.
Also confirmed for a lot next door to the Grizzly Ridge Honda site is a 68-room Best Western hotel. Mouallem says the “dig date” for construction on the hotel is Mar. 21.
“It’s going to be a beautiful hotel,” he says.
On the third lot slated for development – the one located right in the corner formed by Hwy. 2 and Holmes Trail (the road up to Grizzly Ridge), Mouallem says, “We’re looking to attract a national food outlet.”
The Honda dealership will be the first, though. Midwest Developments of Edmonton will be putting up the steel structure. It will have about 15,000 square feet including the upstairs area. Monaghan says there’ll be an additional 7,000 square feet in a ‘soft’ storage shed on the site, as well as yard lighting.
“We’re shooting for a July 1 opening,” says Monaghan.

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