Water bills set to go up six per cent

Posted Feb 9, 2012 By Laura Mueller

EMC News - Ottawa residents will be seeing water bill hikes of six per cent this year, with similar increases every year for the next decade, in order to catch up on major water and sewer repairs.

If approved by city council, that six per cent increase in 2012 would mean an extra $37.82 on an average household's bill for a total of $668.19 each year.

The increases follow an ambitious plan called Ottawa on the Move to advance the rebuilding of many roads, and with that, the water and sewer infrastructure under many of them.

But if Ottawa wants to stay on top of replacing aging pipes before they burst, like recent water-main breaks on Elgin, the city needs to put $2.7 billion into repairs and reconstruction over the next decade.

City treasurer Marian Simulik said Ottawa can only manage to put $2.1 billion into projects over that decade, and the money will come from rate hikes and new debt.

"This staff recommendation shows that this city is committed to improving its vast network of stormwater, wastewater and water infrastructure, not just for residents today, but for future generations," said Coun. Maria McRae, who heads the city's environment committee.

The water-bill hikes (including an additional seven per cent in each of 2013 and 2014, six per cent in 2015 and 2016 and five per cent each year after that) will pay for part of that work, but the plan would also add $460 million in debt to the city's books over the next decade.

That makes sense because long-term borrowing rates are low and because it's more fair to residents who will use the infrastructure to pay for it over time.

Although city council passed a 2.5 per cent budget increase cap shortly after its inauguration last year, McRae said it would be "political opportunism" to also commit to keeping water-bill increases that low and dump the mounting costs of infrastructure repair onto future councils.

The environment committee will vote on the rates and a long-term financial plan for water and sewer projects on Feb. 21.

laura.mueller@metroland.com