Lower rate increase for water shot down
Cost of water and sewer going up 3.6 per cent for 2017
Pending approval from regional council, water and sewer rates are set to go up 3.6 per cent next year. A motion to cap the increases at two per cent was overwhelmingly rejected by councillors at committee of the whole.
By Graeme McNaughton/The Oshawa Express
Residents in Durham Region can expect to see larger water bills in 2017.
Jim Clapp, the region’s finance commissioner, says that due to people using less water but operational costs remaining the same, the region will need to increase the rate for water and sewage by 3.6 per cent. According to data presented at the latest meeting of the committee of the whole, residents are set to use, on average, 23 per cent less water in 2017 than they were in 2005, excluding seasonal usage.
For some councillors, however, that increase was too much.
Councillor Joe Neal of Clarington put forward a motion that called on the increase to be capped at two per cent, citing the $10 million surplus that came from the five-per-cent increase seen for 2016.
“A large surplus was generated. I’m not saying make (the increase) zero, but to even go at 3.6 per cent total, I think, is a little high,” he says, adding that the region could very well see another surplus in 2017 for water.
“I recall a conversation with a senior in my ward, saying she has a hard time managing with all the increases. You can always talk about hydro, but that’s not a reason to keep on upping the ante constantly.”
Clapp, however, says the region can’t rely on there being another surplus, as 2016’s came from higher than expected water usage during this year’s hot and dry summer months.
“Certainly the seasonal usage was especially high this past summer. There’s no question about that. I hate to call it a bonus, but that’s effectively what you’re talking about from a water usage standpoint,” Clapp says. “It’s not the case every year.”
However, the idea of spending less on water in the region left some councillors concerned that the safety of the water people drink could potentially be at risk.
John Presta, the region’s director of environmental services, stopped short of agreeing to this notion, but did say that the region has a plan in place to keep Durham’s drinking water safe.
“Under the Safe Drinking Water Act, there’s a statutory duty of care for each councillor to ensure that we have not only proper operation, but proper maintenance and capital renewal of our systems,” he says.
“I’m not going to say there’s an obvious risk, but we’ve put in the program in order to meet the regulatory requirements, the requirements for replacement and the needs for growth.”
“This is not a year’s snapshot,” Clapp adds.
“We’re talking about a plan here. And if you cut something out this year, it means you’re not going to get something down the road. This is really setting up the whole financial plan.”
When the proposed two-per-cent cap came to a vote, only Neal and Oshawa’s Amy McQuaid-England and John Aker voted in support.
Bigger bills and upcoming work for 2017
In total, the region expects that each resident can expect to see an extra $31.72 on their bill for 2017, based on quarterly billings, bringing the expected annual total to $925.16.
The projected operational costs for the water supply 2017 will see net operating costs rise to $58.7 million from $57.1 million. As well, the region is planning to spend $70.2 million, up from $53.5 million in 2016, on capital costs. The region is also set to increase its contribution to the asset management reserve fund by $200,000, bringing the total to $4.3 million, and contribute $13.8 million to the Clean Water and Wastewater Fund and $600,000 to the federal government’s Small Communities Fund.
The Clean Water and Wastewater Fund is a newly launched initiative by both the federal and provincial governments, with the money going towards infrastructure projects.
In total, user rates need to bring in $101.5 million, or $5.8 million more than 2016, to keep Durham’s taps running.
As for sanitary sewers, operating costs are going up $1.3 million to $59.5 million, despite a drop in consumption of 0.9 per cent across the region.
For 2017, the Region of Durham has 32 sanitary sewer and water projects planned with a budget of just over $6.8 million. Nearly half of that, $3.38 million, is budgeted for a dozen projects in Whitby. Oshawa can expect to see $1.71 million spent on eight different projects.
According to the region’s water and sewer servicing and financing study, major projects coming to Oshawa next year include a sanitary sewer replacement on Park Road South between Fenelon Crescent and Gaspe Avenue, plant upgrades at the Harmony Creek Water Pollution Control Plant, a feedermain replacement on Bloor Street between Grandview Street and Townline Road and from Stevenson Road to Wilson Road and filter rehabilitation at the Oshawa Water Supply Plant.
The budget and future projects are pending approval from regional council, which is set to meet on Dec. 14.