At regular meeting on Dec. 15, Town of Peace River council agreed to changes to its utility rates starting in 2026, helping to move to a user-pay and full-cost recovery model.
“Peace River’s geography creates higher operating costs due to significant pumping requirements,” says Mayor Shelly Shannon.
“These utilities also rely on aging infrastructure that will need replacement. Self-liquidating funds ensure each service can sustain itself and that money is available when major repairs or replacements are required.”
The Town’s goal is for water, wastewater, storm water, and solid waste funds to be self-liquidating. This would move the utility service model away from requiring property tax to pay for future utilities operating and capital expenditures.
“A user-pay model ensures those who use the service fund its true cost,” explains Shannon.
“Full-cost recovery allows the Town to build reserves for known future infrastructure upgrades, reducing the risk of sudden, large rate increases or reliance on debt,” she adds.
In order to meet the utility rate modeling, council has computed adjustments required from 2025-29 that would require a increase of 9.7 per cent to water rates and 10.1 per cent to sewer rates.
“Historically, utility rates were kept artificially low, delaying necessary increases,” says Shannon.
“This resulted in insufficient reserves. Council believes it is more responsible to plan ahead and gradually correct this rather than continue postponing costs.”
At its meeting on Dec. 8, council voiced its concern about increasing the utility rates to that level, noting that it was important to balance the impacts on ratepayers and their cost of living.
“Council approved a reduced increase of five per cent for water and wastewater instead of the originally planned 10 per cent,” explains Mayor Shannon.
“Council heard clearly from residents that affordability is a concern. This adjustment allows time to reassess the model while still making progress toward long-term sustainabil- ity,” Shannon concludes.
Emily Plihal
Local Journalism
Initiative Reporter