Water work

As water consumption drops, the city has to find new revenue sources to pay for rising infrastructure costs.

On Tuesday night city council heard the money might be taken off the backs of local ratepayers.

The plan, which was discussed during a non-business meeting, would increase the city’s annual fixed water rate but decrease its cubic metre rate in order to make the system financially sustainable.

Municipalities have to make significant changes to their water systems, including a requirement to make break even on their water, due to new provincial government legislation made after the Walkerton Inquiry.

If approved by council next month, by April 1 homeowners would pay a fixed annual cost of $176 for water and $1.05 per cubic metre or every 1,000 litres.

Currently the annual charge is $107.32 for a home or duplex with $1.86 charged for every cubic metre, but homeowners pay less for every cubic metre after a certain amount is consumed.

City environment division manager Kerri Marshall said the city’s current rate structure is based on consumption. As less water is consumed, which has dropped 23 per cent since 2001, the city generates less money for infrastructure.

Marshall said renewing the city’s aging system is one of the requirements made by the province to ensure safe drinking water. Increasing the flat rate would allow the city to have a more sustainable revenue stream Marshall added.

"We want to be able to continually provide safe drinking water today and in the future and to do that requires investment and rehabilitation of our water system over time," said Marshall. "It’s really managing our assets to the best that we can to extend their life cycle."

Coun. Joe Virdiramo said he believes city administration is on the right track and is doing what they can to deal with the new provincial regulations. While he admits the city’s current rate plan is antiquated, Virdiramo said he has some concerns.

"I’m concerned about the increases to the ordinary citizen and that has to be taken into consideration," said Virdiramo. "Perhaps our water rates are lower than other communities however our residential tax rates and other tax rates are higher so how does that equate in relation to this particular community."

Virdiramo also said the provincial government appears to be downloading by requiring municipalities to operate with full cost recovery.

"To me this looks like we have to fend for ourselves with the facilities that we have now," Virdiramo said.

Under the proposed plan, fixed rates for anything other than single-detached residences would depend on the type of water meter the building uses. The cost of a cubic metre would be 65 cents.

Council will receive a corporate report on the plan Feb. 17.