THUNDER BAY -- The city needs to pump more money into its sewer system.
For the first time ever, city council will see a 20-year plan to maintain its wastewater system, which would cost around $625 million to replace.
Part of that plan is the recommended move of raising the 75 per cent sewer surcharge to 90, which will represent an average of $80 a year for ratepayers.
"It's an area that we have some challenges," city manager Tim Commisso said.
Operating costs rise around 2.5 per cent along with 7 per cent in utilities.
Those costs are expected to reach $20 million in the next decade.
Bumping up the surcharge would help the city battle those costs and have reserves to maintain the wastewater infrastructure.
While a recent asset report card gave the condition of the city's sewers mostly A's, its only being funded at around 33 per cent of what's needed in the coming years.
Commisso said many communities have a 100 per cent surcharge, something that's not being recommended by administration.
At 75 per cent though, the system can't be sustained and isn't a financially responsible option according to the report.
"We realize it's an impact, it's an increase but it's tied to the fact that we have a 20 year plan," Commisso said.
"There's a lot of infrastructure under the ground that we have to deal with," he said.
The plan also highlights that the rate-supported sewer surcharge is tied to the water rate. Less consumption, down nearly 19 per cent since 2009, means less revenue.
Council will hear the plan as a first report and then discuss the recommendations during budget.
