Water & Wastewater Utility Rates

At its December 16, 2025 meeting, Council provided direction to proceed with proposed 2026 water and wastewater utility rate increases, informed by detailed financial analysis and long-term infrastructure planning presented earlier in December.

Unlike most City services funded through property taxes, water and wastewater services are entirely funded by user fees. These fees must cover all operating costs, system maintenance, regulatory requirements, and the eventual replacement of critical infrastructure.

What’s driving the proposed increases?

The proposed 2026 water and wastewater rate increases are designed to maintain reliable services and address long-term infrastructure needs identified through the City’s Integrated Infrastructure Capital Plan (IICP). Analysis shows that our water and wastewater assets are already more than halfway through their lifecycle, while current reserve contributions cover only a fraction of what is needed to sustainably replace aging infrastructure. Without action, funding gaps and service risks are expected to grow.

Major upcoming costs include required upgrades to the wastewater treatment plant, currently estimated at around $40 million in 2028–29, as well as the replacement of aging lift stations and underground infrastructure. Increasing regulatory and environmental requirements also add to the long-term costs of providing safe, reliable water and wastewater services.

What is changing in 2026?

Council directed staff to prepare draft 2026 bylaws that include:

• A 14.5% increase to water utility rates

• A 17% increase to wastewater utility rates

For the average single-family home, this would result in:

• About $13.15 more per quarter for water

• About $20.77 more per quarter for wastewater

The combined annual water and wastewater bill would increase by approximately $135 from roughly $852 to $987 (this excludes the portion of the utility bill for the curbside collection program - waste, recycling, organics.)

What do these increases support?

The proposed rate changes help maintain reliable water services by adding a fourth operator to reduce backlogs and service risks. They cover rising operating costs, increase reserve contributions to address infrastructure gaps, and support major projects like the UV treatment upgrade at Fairy Creek, partially funded by development charges. These changes also strengthen long-term financial stability by reducing reliance on future borrowing or uncertain grant funding.

Why take this approach now?

Other communities that delayed rate adjustments have faced sudden one-time increases of 60–80% to address funding shortfalls. Fernie’s approach focuses on regular, incremental adjustments, spreading costs more fairly across generations of users and helping avoid severe rate shocks in the future.

What happens next?

Draft water and wastewater utility bylaws will be presented to Council for readings on January 13, 2026.

Residents are encouraged to stay informed, review upcoming materials, and participate through Let’s Talk Fernie as the City continues to plan for safe, reliable water and wastewater services — today and into the future.