Newmarket water rates likely rising in 2017
The average resident who uses 200 cubic metres of water annually would face an increase of about $60 on their bill next year

YorkRegion.com
Dec. 1, 2016
Chris Simon

It seems the less water Newmarket residents use, the more they pay.

Council is expected to pass 2017 water and wastewater rates next week. If approved, the average resident who uses 200 cubic metres of water annually would face an increase of about $60, or 5.8 per cent, on their bill next year. The average business consuming 835 cubic metres of water would pay about $295 more next year, a nine per cent increase.

The rates would come into effect Jan. 1.

Newmarket will also increase the basic monthly charge for wastewater by $1.50, as part of a four-year plan to transition to a tiered fixed rate for that service. Consumption has dropped significantly in recent years, but the town still needs to maintain and repair vital infrastructure, leaving the municipality with few choices to make up for falling revenue, town treasurer Mike Mayes said.

“Between 2005 and 2014, residents and businesses in Newmarket have been using 17 (per cent) less water per year,” he said. “Despite the reduction in consumption, much of the costs associated with maintaining the water systems — for example water quality testing and water main repairs, remain the same. The town has two options when there is a loss of revenue: Raise the volumetric rate (the amount based on water consumed) or raise the fixed rate.”

Council is also considering adding a new stormwater charge into its 2017 user fee bylaw. Under the plan, properties will be divided into low (golf courses and vacant properties), medium (residential and institutional) and high (commercial and industrial) run-off groups.

Low run-off properties would be charged $189, on average, each year. Meanwhile, medium run-off sites would pay $39 annually, and high run-off properties will be charged $484 per year, Mayes said.

The funds will be used to pay for future stormwater management improvement projects.

“Water is extremely important,” CAO Bob Shelton said. “Next to air, it’s the most important component that humans require. It is vitally important we have a system that is well maintained.”

Mayes says the town needs to transition to a more sustainable funding source for water management, given consumption trends, to ensure it has enough money to cover inevitable environmental, aging infrastructure and flood prevention needs. The town has 53 ponds, 55 kilometres of waterways and 225 kms of sewers to maintain and about $17 million is required to replace assets that are reaching the “end of their useful life” over the next 10 years.

However, Mayes stresses the stormwater fee will not generate additional revenue for the municipality. To balance out the money generated by the new charge, staff plan to decrease property taxes by 2.6 per cent and the water and wastewater rate by .7 per cent.

In addition to infrastructure upkeep, the town also has to prepare for climate change and meet provincial mandates, Regional Councillor John Taylor said.

“People get these rate increases and these numbers can seem quite high,” he said. “It’s important to recognize (York) Region, the town, other municipalities throughout southern Ontario have been seeing significant increases of this nature for years now, and will be for a number to come. Newmarket is by no means alone.”