The business community is disappointed with the proposed changes to the stormwater rate system and says it is another cost businesses will need to shoulder.
Jennifer McCurdy, president and CEO of the St. Albert & District Chamber of Commerce, said businesses already took a financial hit from the introduction of the electrical franchise fee introduced earlier this year.
“Now the same businesses and even more will be affected by stormwater rates if that comes forward,” McCurdy said.
For several years city administration has been looking into stormwater rates in the city after some residents suggested the current system wasn’t fair.
Last Monday, council unanimously voted in favour of supporting the changes that were recommended by administration, which will come back to a council committee in two years before rolling out in 2021.
Coun. Wes Brodhead supported the decision to shift towards what he called a more fair and equitable system.
“I am supportive of this because I think it more fairly distributes the cost of providing storm services to our community and those that use it. Any time that you can instil equity into your system I think you are further ahead,” Brodhead said.
But McCurdy said businesses contribute positively to the city and wants council to consider what is best for the entire community.
“They (city) say that they are trying to make it equitable for the community. These big businesses support the community in a large way and sometimes we have to look at what is best for the community as a whole,” McCurdy said.
Jodie McFadzen, owner of the UPS store and chamber chair, said the move is not business-friendly.
“It’s just an extra cost and it’s already tough enough. Rent in St. Albert is already extremely expensive,” McFadzen said.
“It just seems like it is one thing after another that small and large businesses are being hit with, especially the smaller businesses. People are going to close their doors because how are they supposed to stay afloat?”
The recent increase to the minimum wage, introduction of the electrical franchise fee and other costs are putting pressure on local businesses, McFadzen added.
Right now, the city uses a flat rate system where single-family residential homes pay one flat rate, stacked residential units, like apartments and condos, pay a second flat rate, while commercial and industrial properties pay the third rate level.
The change would shift the cost recovery for the system away from residential onto business. Right now residential properties make up just over 91 per cent of the cost recovery of the system. The new impervious surfaces system will decrease residential to just under 75 per cent of the cost recovery with non-residential shouldering 25.6 per cent of the burden.
The new system will take into consideration how much runoff each property produces and charge them based on the calculation. Administration will determine how much water-resistant, or impervious, surfaces a property has, which is the most important factor in determining the impact on the stormwater system.
Although rates for properties will be calculated using their impervious surfaces, like parking lots, the city has proposed a cap to the calculation so large facilities in the city will not see massive, unaffordable increases.
Residential properties will be capped at 1,000 metres squared while non-residential will be capped at 25,000 metres squared.
Right now the chamber does not know the exact dollar amount the proposed changes will cost individual businesses, but McCurdy added she is pleased to hear a cap will be imposed to protect large businesses in the community.
“One of the things that the city has said is that they are proposing looking at a cap, so the larger facilities who it really could have a negative impact on would not be impacted as much,” McCurdy said.
Council voted in favour of the changes, but many councillors expressed concern over how the changes will impact the city’s competitiveness in the region. Council asked to see more details when the issue comes back to committee in two years.
The new system will not begin to kick in until 2021 and will roll out over a four-year period, after administration advised council not to not pile on to the business community on the heels of the electrical franchise fees.
McCurdy said she was happy to learn about the delay as it will give the chamber time to learn more about the specifics of the changes and advocate to the city for changes to the proposed rate system.
By the numbers
• Overall the changes will see 72 per cent (17,709 total) of customers paying less under the new system.
• Some 73 per cent of residential properties, 100 per cent of stacked homes (condos and apartments) and 56 per cent of business and commercial properties will all pay less.
• Some 480 residential ratepayers will pay less with 382 customers seeing an increase.
• Just over 57.1 per cent of commercial and industrial businesses will pay less and a little over 200 non-residential customers will pay $1,000 or more per year.
