Water rate increase ‘unacceptable’, says resident

Diane Sykes worries she may have to sell her home, if water and wastewater rates continue to climb.

And she's outraged by a proposed 8.91 per cent base rate increase to residential water and wastewater services this year.

"Please send this back with a strong 'no'," she said, addressing a town committee last week. "This is unacceptable. Water is a basic necessity of life. Negotiate the increases from somewhere else, (like) the millions of dollars wasted on the beautification of (Innisfil Beach) road."

Town staff presented the proposed new rates to that committee last week. If approved as presented, water and wastewater base service fees would increase by an average of 7.3 and 6.3 per cent per year respectively, until 2025. The per cubic metre rate would also increase this year, from $.99 to $1.09, under the proposal.

Staff say the increases are necessary, in order to comply with the provincial government's Sustainable Water and Sewer Systems Act. That Act essentially forces municipal governments to become selfsustainable, rather than seek provincial and federal handouts for large-scale water and wastewater projects. Municipalities are required to build large reserve funds as a result, said treasurer Audrey Webb.

"Our intent is to provide (the committee) with a look ahead," she said. "The increase is attributed to (the Act). We're (attempting) to meet the needs of the water and wastewater operating system. The intent is to have these facilities generate their own revenues, to rebuild when the system (breaks down). By 2025, we expect to be self-sustainable."

Inflationary and wage increases have also contributed to the proposed increases, said Webb.

In total, wastewater and water rates will increase to about $900 for the average user in 2010, up about

73.64 from current prices.

Councillors say the Act is little more than unfair provincial downloading.

"This is downloading again," said councillor Dan Davidson. "We're being proactive, with no dollars given by the province."

However, the municipality is relatively helpless, said deputy mayor Gord Wauchope.

"This is a move council is putting in place because of (the Act). All you have to do is look at the CIty of Toronto or other areas that are in financial trouble because they don't have the money to repair their own systems," he said. "We're looking towards the future, to save money for residents when something disastrous happens."

The departments are already severely underfunded, and could fall over $3.9 million short in reserve cash by 2012.

But the increased cubic rates could actually help encourage water conservation, said councillor Lynn Dollin.

"We're wise to move in that direction and create that reserve," she said. "We are the most gluttonous water users of any place in the world. The only way to get Canadians to conserve is to

make (water) valuable ... and increase the cubic rate. Water is this century's oil." mayor’s post