‘It’s about fairness’: Updated Port Coquitlam utility rates shifts costs away from apartments, secondary suites

Port Coquitlam is following the lead of its neighbouring municipalities by updating its utility rate structure to create greater equity between housing types.

Currently, single family and townhouse residents – who typically use significantly more H20 – pay rates similar to residents of apartments and secondary suites.

Mayor Brad West said the new fee structure will rebalance the cost-to-usage ratio, emphasizing the rate change is revenue neutral for the city,

“It’s about fairness,” said Mayor Brad West. “This addresses the inequity and the unfairness that exists in the current rate, and does it. I think, in a very sensitive and balanced way.”

The city does not have water metering for residential properties, and currently relies on a flat rate which has never been adjusted.

The new rates will shift the expense away from apartments and secondary suite customers at the expense of single family and townhouse customers.

Similar “equitable distribution” changes have been made by Coquitlam in 2014, and Port Moody in 2022, which have decreased rates for apartments and secondary suites, according to staff.

Single family housing residents account for the greatest proportion of utility customers in the Port Coquitlam, with around 11,000 users, however, apartment and townhouse residents are the fastest growing group.

Based on the latest census data from Statistics Canada, staff calculated single family homes and townhouses average around one person more per household.

West said the city anticipates the vast majority of new housing in the city will be multi-family units, and the new rates needed to reflect that.

“We’re not going to see any large scale single-family neighborhoods being constructed,” West said.

He added Port Coquitlam’s rate structure will still be lower than neighbouring municipalities.

Staff said the adjustments, which will be phased in over a five-year period, are the best alternative in the absence of water metering.

At the end of the phase-in period, the new rates will decrease the cost for apartment and secondary suite customers by 24 percent and 31 percent, respectively, while increasing the cost for single family and townhome customers by 13 percent and 9 percent.

Coun. Steve Darling inquired as to whether or not council should extend the phase-in period, stating that apartment and townhomes customers will likely outnumber single family customers sometime in the next decade.

He said the increase could be a burden to single family residents who are on a fixed income.

“It would obviously have less of an impact on the homeowner,” Darling said. “It just seems like the ratio becomes more equitable over a longer time period.”

Coun. Dean Washington noted that nearly 3,200 single-family homes currently have secondary suites, which would see a reduction.

“It’s really as close to getting to a user pay solution that we could come up with,” Washington said.

In an email to the Dispatch, Director of Engineering and Public Works Joshua Frederick said while residential water metering would help the city quantify consumption rates, the financial impacts of installation, operations and maintenance costs need to be considered.

He added with current construction costs, implementation of water meters is not an immediate priority, but the city plans to examine date in the region and carry out a cost benefit analysis in the future.