July 27, 2026, Meeting Update: Sewer Rates and Billing

At its July 27, 2026, meeting, Council received an update on work underway to develop a new sewer rate structure.

The District’s current sewer charges are based on a parcel tax and a standard sewer fee. This system is being reviewed because repayment of the wastewater treatment system debt will end in 2026.

A new rate structure is needed for 2027 to ensure the District can continue to operate and maintain the sewer system and replace aging infrastructure over the long term.

Proposed User-Pay Model

Staff are reviewing a new model that would connect part of each property’s sewer bill to how much water it uses.

The District does not have meters that measure wastewater leaving each property. Instead, metered drinking water use would be used to estimate wastewater use.

It is anticipated that winter water use be used for this calculation. Winter use is a better measure of indoor water use because it is less affected by lawn watering, gardening, and other seasonal outdoor use.

The proposed model is intended to:

• provide stable funding for the sewer system;
• better reflect how much each property uses the system;
• ensure users contribute fairly to operating costs; and
• encourage water conservation.

How Sewer Charges Could Be Calculated

Staff are considering two possible approaches to calculating sewer charges.

Option 1: Parcel Tax and Utility Bill

Under this approach, sewer charges would appear in two places: an infrastructure charge on the property tax bill and fixed and usage charges on a separate utility bill.

Property Tax Bill

Infrastructure Charge: This fixed charge would help fund future repairs, replacements and upgrades to sewer pipes, manholes, pump stations and wastewater treatment plant equipment.

The charge would be adjusted annually for inflation. The method used to calculate the annual adjustment would be established when the parcel tax is introduced.

Utility Bill

Fixed Charge: Every property would pay a fixed amount to help cover the basic cost of operating and maintaining the sewer collection system and wastewater treatment plant. This charge would not change based on water use.

Usage Charge: This charge would be based on metered water consumption. Staff are also considering a tiered rate structure under which properties using more than a set amount of water would pay a higher rate for additional consumption.

Option 2: Utility Bill Only

Under this approach, all sewer charges would appear on a separate utility bill and would include:

Fixed Charge: Every property would pay a fixed amount to help cover the basic cost of operating and maintaining the sewer collection system and wastewater treatment plant. This charge would not change based on water use.

Infrastructure Charge: This charge would help fund future repairs, replacements and upgrades to sewer pipes, manholes, pump stations and wastewater treatment plant equipment. The amount would be reviewed each year through the District’s budget process.

Usage Charge: This charge would be based on metered water consumption. Staff are also considering a tiered rate structure under which properties using more than a set amount of water would pay a higher rate for additional consumption.

What This Could Mean for Those Connected to Sewer in Sooke

The new sewer rate system is expected to take effect in 2027.

Because the current system charges similar amounts regardless of use, some residents may see their annual sewer costs decrease, while others may see an increase.

Early financial modelling suggests that about 20 per cent of customers could see a more noticeable change, either higher or lower.

Households with lower water use may pay less. Properties with higher use, such as homes with secondary suites, or other high-water-use activities, may pay more.

The proposed model is intended to better reflect each property’s estimated use of the sewer system.

Staff would also work with property owners when unusually high water consumption may have resulted from a leak, broken service line or meter issue. In these situations, the District could review the circumstances and determine whether an adjustment is appropriate.

Billing Options

Staff are also reviewing how often sewer bills should be issued.

Options include:

• one bill each year, with an installment plan available;
• two bills each year; or
• more frequent billing.

Billing more than twice a year is not recommended because it would require significantly more administration.

Annual billing would be simpler to administer, but one larger payment could be difficult for some customers. Billing twice a year would reduce the amount of each payment but require additional administration.

Staff will present recommended billing options to Council in September.

Next Steps

Staff will continue reviewing the proposed rate structure, billing schedule and customer-support options.

The next update is expected to be presented at the September 8, 2026, Regular Council meeting.