The City of Kenora has approved plans to increase its water rates each year until 2026.
Councillors voted in favour of annual 3.1 per cent increases between 2022 and 2026 during a Council meeting on November 16, as recommended by a third-party consultant.
Kenora’s Manager of Finance and Treasurer, Charlotte Edie, says the average family that consumes 10 cubic metres of water each month will see their bill rise from $125.66 in 2021 to $146.36 by 2026, with the first increase taking effect on January 1, 2022.
During November 9’s Committee of the Whole meeting, Kenora Mayor Dan Reynard noted these yearly increases will be the only planned water and sewer rate increases and are not in addition to previous yearly increases.
Water rates increased by 5.5 per cent in 2020, by 8 per cent in 2019 and the city saw 10 per cent increases each year between 2013 and 2018.
Kenora’s Water and Wastewater Long Range Financial Plan was initially received by councillors in September 2020, and originally called for these yearly rate increases to begin in 2021.
The report was created by BMA Management Consulting Inc., which points out there is a projected $4.2 million gap between the city’s current capital contribution for water and wastewater infrastructure replacement work, and what will be needed to be replaced over the next 50 years.
But in October, councillors defeated the motion calling for the first increase in 2021 – delaying it until 2022 due to the ongoing COVID-19 pandemic.
Councillors say the ongoing, yearly challenge is to keep water rates affordable, while saving enough for future maintenance on the city’s wastewater system and its infrastructure.
The consultant’s plan includes $13.2 million of capital water work and $14.6 million of capital wastewater work over the next six years, based on the city’s 2021-2025 capital forecast and previous three-year averages.
As it stands, the report states the city’s water program has an annual surplus of $1.99 million, which will rise to $2.4 million in 2026. Water reserves are expected to increase from about $1 million in 2021 to $6.2 million in 2026.
The report also shows the city’s wastewater department has an annual surplus of $1.1 million, but by the end of the plan, they have projected a surplus of $1.6 million. Wastewater reserves are currently in deficit of $1 million, which is expected to be cut to $490,000 by 2026.
Municipal water is a user-pay system in Ontario. This means revenues from water and sewer rates have to sustain the municipal system, and profits can't be used for general revenues or other projects.
City approves five years of water bill increases - KenoraOnline.com
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