THUNDER BAY — The focus on a likely increase in property taxes in Thunder Bay this year may have deflected attention from another big revenue source for the city—water and sewer rates.
These services largely escaped scrutiny during the Christmas break when the city administration released its proposed 2020 municipal budget.
It includes a tax levy increase of 2.32 per cent.
But water and sewer charges are currently set to go up much more steeply, with a projected increase of 4.0 per cent, the largest hike in years.
This expands on the trend established in the 2018 and 2019 budgets, when water and sewer rates grew by 3.0 per cent, while property tax levies increased by 2.42 per cent and 1.98 per cent respectively.
If council approves the recommendation, it will mean that water and sewer charges have increased an average of 3.25 per cent annually over six years.
The property tax levy, by comparison, will have gone up an average of 2.5 per cent annually over the same period.
City Treasurer Linda Evans provided Tbnewswatch with the most recent data:
|
Year |
Water (Sewer at 90 per cent) |
Per cent Tax levy increase (net of growth) |
|
2020 |
4 per cent |
2.32 (proposed) |
|
2019 |
3 per cent |
1.98 |
|
2018 |
3 per cent |
2.42 |
|
2017 |
3 per cent |
3.13 |
|
2016 |
3.48 per cent |
2.10 |
|
2015 |
3 per cent |
3.18 |
The city's budget summary states that "Thunder Bay water and wastewater rates remain affordable."
The average household, it says, will pay $1,235 for sewer and water service in 2020, or 1.4 per cent of median household income based on 2015 census data.
According to the city, the industry standard is that rates are deemed affordable if they amount to a combined 4.0 per cent of median household income.
If council approves the 4.0 per cent increase, the average household using 200 cubic meters of water a year will pay an additional $25.72 annually, with the daily cost for water services averaging $1.78 a day.
Wastewater surcharges will continue to be billed at 90 per cent of the total water (fixed and volumetric) charge.
An increase of 4.0 per cent in the water rate means wastewater rates will also go up by 4.0 per cent, resulting in an annual increase of $23.15 for that part of each household's bill. According to the city, the daily cost of sewer service will then average $1.60.
