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Rate adjustment

Minor changes to an already approved plan re-opened the floodgates over the city’s water rates.
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Minor changes to an already approved plan re-opened the floodgates over the city’s water rates.

Approved by the current city council in 2010, administration recommends raising the city’s water rates every year until its water system is financially sustainable, which is mandated by the province.

Originally stating that the plan would see a 5.6 per cent increase for 2014, the city now needs that to be 6 per cent in order to battle rising costs and declining consumption. 2015 would see a 3 per cent increase instead of the original 2.7 and then 3 instead of 2 in 2016. The system costs around $33 million per year and is expected to be self-sufficient by 2023.

City council, with the exception of Coun. Larry Hebert, approved the changes but not without rehashing a lot of concerns that they’ve had with the plan since it was originally accepted.

Declining consumption is partly due to conservation. The average household dropped from 200 cubic metres of water to 170 in 2012. Coun. Joe Virdiramo asked what the point of encouraging people to use less if it`s still going to cost them more.

“What was the reward for that? Higher rates,” Virdiramo said.

City operations manager Darrell Matson said that`s one outcome but municipalities across the country are seeing similar numbers.

But there`s a trade-off as less greenhouse gases are emitted and less energy is consumed in other conservation areas.

“We all struggle with conservation,” Matson said.

Coun. Aldo Ruberto said he`s concerned that the rates continue to increase more than council was originally told. Compounded over the years, he said people on fixed incomes might not be able to afford it. There was little alternative though and the rates were still reasonable he said.

“I don’t see any time ever where there will be zero on that chart,” he said.

But Matson said this was the first time that council had been asked to adjust the rate from the original plan. There`s always a possibility in a given year that the city might be able to drop the rate as well.

“We always compare to the assumption and adjust,” Matson said.

The increase will still need to be approved through the 2014 budget process.





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