Council questions 13 per cent rise in water rates through 2030

Lloydminster city council approved new wholesale water rates Monday, setting a five-year pricing schedule for water sold to Alberta Central East and SaskWater as part of a broader discussion on infrastructure costs and affordability.

Administration told council the proposed rates include a 13 per cent annual increase from 2026 to 2030, driven largely by major upgrades needed at the city’s water treatment plant.

“So today we’re here to seek approval from Council to establish the 2026 to 2030 wholesale customer potable water rate for ACE and SaskWater,” said Karen Gana-Dela Rosa, the city’s director of environment services.

She said the city recently completed a water master plan identifying approximately $22.84 million in capital projects over the next five years, focused primarily on replacing aging infrastructure rather than expanding capacity.

“These investments are necessary to maintain reliable potable water supply,” Gana-Dela Rosa said.

Councillors questioned how the wholesale rates compare to what local residents pay and whether outside users are contributing fairly to the cost of infrastructure.

“What is the rate that our residents pay?” asked Coun. Justin Vance.

Gana-Dela Rosa said the proposed 2026 residential rate is $4.64 per cubic metre, which includes both water and sewer services, as well as the city’s full distribution and collection systems.

Vance said his concern was whether wholesale customers were paying significantly less for the same water.

“I was just worried that members of SaskWater and ACE are paying substantially less for the same water that our residents are paying for,” he said.

Gana-Dela Rosa responded that the comparison is not one-to-one because residents and wholesale customers are paying for different services.

She explained that residential rates include the entire municipal water and wastewater system, from treatment and distribution to sewer collection and wastewater processing. Wholesale customers, by contrast, pay only for the cost of producing treated water at the plant and their proportional share of capital upgrades tied to their actual usage.

“They are not paying for the city’s distribution pipes, sewer collection, or wastewater treatment,” Gana-Dela Rosa said, adding that wholesale rates are calculated to recover operating costs, projected inflation, and five years of capital investments.

Mayor Gerald Aalbers said the discussion highlighted the importance of ensuring fairness for both local residents and regional users.

“We are not just looking after our own taxpayers,” Aalbers said. “Our services are extending outwards, so making sure that everybody’s paying their share of the bill accordingly is important.”

Coun. Jason Whiting also questioned whether the city could be undervaluing its water.

“Part of me just thinks that it is low in comparison to what is being charged in our own community,” Whiting said.

Gana-Dela Rosa said administration is confident the proposed wholesale rates are fair and equitable.

“We have accounted for our current operating costs, projected inflation, five-year capital costs, and overhead expenditures,” she said. “We feel that the rates are aligned and equitable.”

Council approved the wholesale water rates through 2030.

Read more: Lloydminster Council Monday: Bravery to borrowing millions