The utilities are stand-alone city services that are accounted for, budgeted for, and funded separate from the general operating and capital funds in the provisional budget. Utility rates need to be approved and in place before the beginning of the fiscal year (January 1, 2024). Money generated by the utilities is used exclusively by the utility in which the revenue is generated as the utilities cannot use general taxation funds. In addition to budgeting for annual operating and capital costs, utility budgets include reserve funds, which are set aside to support asset management plans and the utility’s long-term planning needs.

While utility rates are considered separately from the provisional budget, Council considers the total impact of tax and utility rate increases on residents when passing each respective bylaw.

On October 31, Council received it's first report on the proposed 2024 utility budgets and rates. Administration is recommending a 7% rate increase for the solid waste utility, a 25% rate increase for the water utility, and a 2.5% rate increase for the sewer utility. The rate increase for the water utility includes the 10% rate increase required to support Council’s April 18, 2023, decision to increase the development cost charge assist factor for water plus a 15% operational increase.

These increases would equate to $129 in additional costs for the average Kamloops homeowner in 2024 compared to 2023.

Council directed Administration to prepare amendment bylaws for each respective utility based on the reported recommendations. These bylaws will be presented to Council in a future regular Council meeting and must be adopted and in place by January 1, 2024.

The full report is available on the City's Council Portal. You can also hear the full Council discussion in the meeting recording on YouTube.