Balancing utility fees to ensure sustainable funding for the long-term

Letter to the Editor

At this time of year, many of us look back on the year that was, as part of channeling our energy into creating a better way forward for the new year. The District of Saanich is no different! 

Every December, your Saanich Council carefully reviews and considers utility rates as part of the broader financial well-being of the District. As we do this work, we consult with staff and scan what’s happening in other jurisdictions to ensure we’re aligned with best practices and doing our best to balance the needs of residents with the financial sustainability of our municipality. These decisions are often difficult, and I wanted to help provide clarity in-relation to the ongoing community discussion surrounding changes recently made to the District’s utility billing practices.  

In 2024, after much thoughtful consideration and thorough review, Council decided to begin modernizing how our water utility rates are calculated, following best practices that have already been adopted by neighbouring local municipalities. 

Shifting towards a more sustainable funding approach, balancing usage and a larger flat rate, helps minimize the risk of the water and sewer budgets going into a deficit and will stabilize rate increases over time. Importantly, this balanced rate structure continues to reward conservation, while also safeguarding the District’s financial health. 

Reliable water service is essential to the region’s health, economy, and emergency preparedness. As climate change brings more extreme weather, existing infrastructure ages and the population continues to grow, investment in system replacement, redundancy and seismic resilience becomes even more important.  

I fully understand and acknowledge that billing changes and ongoing increases to the cost of living in Saanich can bring up questions and concerns. This recommendation received our support only after a thorough review by staff, which included advice about best practices from external agencies and an in-depth analysis of the numerous contributing factors. We’re confident that the path we’ve chosen is the best way forward that both minimizes the impact on residents while maintaining the quality services you depend on. 

The changes and ongoing rate increases we're experiencing relate to the current external pressures put upon the District’s finances. 

• Construction costs have risen significantly, and we are allocating additional capital funding to replace aging infrastructure, in line with our Infrastructure Replacement Funding Strategy approved by Council earlier in 2024. 

• Operating costs have also increased, driven by inflationary pressures on equipment and materials, as well as our need to service debt. 

• Additionally, the cost of bulk water from the Capital Regional District (CRD) has increased, which has contributed to rate increases in 2026. . 

We are committed to addressing these challenges while continuing to provide residents with reliable and efficient services.

As with everything we do at Saanich, Council and staff are committed to transparency and would be happy to provide answers to your questions. You can learn more about the change by visiting saanich.ca/utilitybilling, which includes several FAQ documents and Council reports with details about the change and new structure.  

Thank you for your time and ongoing engagement with us. 

Dean Murdock, Mayor of Saanich