The RM of Victoria's preparing for a substantial increase to water and sewer rates in Holland. Reeve Harold Purkess says they're looking to increase the minimum charge to $107.19 per quarter, up about 59 per cent from $67.80. However, that's not the only burden facing the utilities users. There are also two quarterly riders in place, which are additional charges to help cover past deficits. One rider relates to a deficit incurred in 2014, amounting to $23.40, which will expire May, 2017. The second rider amounts to $22.68, and was put in place this past January, and will remain in effect for eight quarters. 

Reeve Harold Purkess

Purkess says the biggest issue leading to the riders, and substantial increase is new regulations under the Public Sector Accounting Board, which now takes amortization into account in a utility's budget.

"The biggest problem that's really impacting our rates is our treatment costs for well water being very expensive here. Also, the new accounting system has amortization. We can basically break even with our Holland utility, and then all of a sudden once amortization is added to it, we're looking at a $22,000 per year deficit, so that's why there's the large increase in water rates."

While Council's been forced to put the new rates forward, Purkess says they're not pleased to be implementing such a drastic hike, citing the challenges it will create for citizens.

"We're not happy about it at all. We have a retirement community, a lot of senior citizens, and a lot of senior citizens living alone in a household. These rate increases hurt. Most of these people are on a fixed income, and it's not nice at all."

While Holland's facing the biggest hikes, the situation's similar in Cypress River. Purkess explains that area was able to prevent deficits because of their previously higher rates. He also says they have much new infrastructure for the utility, meaning repairs are cheaper, and take place less often.