Water, sewer rates under review
BUDGET: Homeowners could see increases of 11% and 16%
Posted By BOB BRUTON
Posted 10 months ago
The city could flush the way it now calculates water and sewer bills in Barrie.
Homeowners are likely to see higher annual bills as a result, although industry and business could get a break, depending on what Barrie councillors decide at budget time.
Overall, it could mean 11% increases in water rates and 16% increases in sewer rates next year.
"On the residential side, we really are quite low," said city finance director Debbie McKinnon, comparing Barrie with other similar municipalities.
She said business and industry are probably paying too much for sewer and water right now.
"On that we are not competitive," McKinnon said, making it tougher to attract new investment and development.
Barrie councillors will consider a water and wastewater rate structure review tonight.
"This rate structure gives us the road map," said Ed Archer, the city's general manager of corporate services. "It's a new way to calculate the rates.
"The bill today is just too complex to understand."
Barrie's current residential rate structure has monthly fixed charges and four consumption thresholds, with costs rising as consumption increases.
Non-residential customers also have monthly fixed charges now, based on water line size, then two consumption thresholds.
This current rate structure results in the city recovering 26% of the water service's fixed costs, and 24% of the sewer costs.
The city, therefore, relies too much on volume charges to recover its needed revenues.
The new rate structure would allow the city to recover 34% of the revenue needed by 2012.
Under existing water/sewer rates, the average residential customer using 250 cubic metres will pay $564 this year.
If the rate structure doesn't change, this user would pay an extra $77 next year, or $641, an increase of 13.6%.
Under the rate structure being recommended by city staff, this same user would pay another $65, or $630, in 2010, a hike of 11.6%.
City council has instructed staff to develop a water and sewer rate structure strategy which would meet full cost recovery, required in the Sustainable Water and Sewage Systems Act and the financial plan requirements under the Safe Water Drinking Act.
bbruton@thebarrieexaminer.com
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On the agenda
The following items are on the agenda for tonight's Barrie city council meeting:
Members of the Barrie Folk Society will make a presentation to city councillors about the 5th annual Barriefolk: Roots Music Festival.
Barrie student mayors Eric Loucks and Sergio Morales will make comments about their time in office.
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