York Region to hike water and wastewater rates in April

YorkRegion.com
Oct. 15, 2015
By Lisa Queen

Get ready to pay more to turn on your tap, flush your toilet or use your dishwasher or washing machine.

Water and wastewater rate hikes approved by York Region council Thursday will increase April 1.

The rates on the average household will jump $93 next year, $101 in 2017, $110 in 2018, $120 in 2019, $131 in 2020 and $45 in 2021.

Forecasted increases beyond the six years are $47 in 2022, $48 in 2023, $29 in 2024 and $51 in 2025.

At the moment, the average household bill for water and wastewater, including regional and average municipal charges, is $1,032 a year.

The region argues the increases are needed to cover operating costs, meet expenses including payments to Toronto and Peel and Durham regions for water and wastewater services, maintain $5.3 billion worth of infrastructure now and in the future and build up its infrastructure reserves.

The increases are also necessary because the region failed to charge consumers the true cost of providing water and wastewater services in the past, regional chair Wayne Emmerson said.

“Our water rates were way too cheap years ago and I think that’s the reason why people are saying why is water so expensive (now)? We did not charge enough money 20, 30 years ago and that’s why we’re in this predicament today,” he said, adding provincial regulations have also contributed to the region’s increased costs.

“I’m hoping you’ll see this, I believe, as something we need to do and make sure we do get our rates the way that they should be for the future of York Region. Because it is very important for us to have this because we do want to have great water for everyone but we also need to make sure our infrastructure is put in the ground and for repairs and for everything.”

The rate hikes were initially approved by councillors in a committee meeting last week but Markham Councillor Jack Heath took an unsuccessful last stab on Thursday at trying to get the increases phased in over a longer period to ease the financial burden on residents.

Only Heath, Newmarket Councillor John Taylor and Markham Councillor Nirmala Armstrong voted against hikes approved by council, although several councillors at last week’s committee meeting had said the increases could come as a blow to some residents.

The region seems to be playing catch up on the rates too quickly, Taylor said.

“I would assume we’re in the position we are today, making this decision today, because of either not fully understanding the level of investment we needed to make or under-investing in the past or both, perhaps going back 10, 20, 30 years,” he said.

“If the problem has been created over 10,20, 30 years…it seems like we putting quite a burden on one generation at one period of time when this has probably been created over a longer period of time.”

The region can’t turn back the clock and correct past wrongs, treasurer Bill Hughes said.

“We can’t fix history. In the past, it is quite clear that people were paying water rates that were too low and we weren’t setting aside the amount that we need for good asset management,” he said.

“So, we can’t fix that, but we can fix the future.”

Heath shared Taylor’s concerns.

“When a household gets into financial difficulties, with too many credit cards and buying a house that’s too big or expensive would be the word, you don’t recover overnight,” he said.

“I think we are trying to accomplish something too fast.”

While Markham Mayor Frank Scarpitti said he supports “paying our way” for infrastructure, arguing falling behind just costs more in the long run, he questioned whether trying to make up for lost ground too quickly could be too great a burden on residents.

The rate hikes could hurt people on fixed incomes, Richmond Hill Councillor Vito Spatafora added.

But Vaughan Mayor Maurizio Bevilacqua argued council should bite the bullet and charge the necessary rates.

The region is moving towards financial sustainability while providing clean and safe water to 1.1 million residents, maintaining $5.3 billion worth of infrastructure, complying with complex provincial regulations, building reserve accounts and moving towards full cost recovery, he said.

“The fundamental question I ask myself is how quickly do you want to get the job done? That’s the fundamental question. You can delay. But I don’t want any consumer out there thinking they are paying less if we are delaying. We’re just not achieving the objectives we’ve set out in a quicker way,” he said.

“I’d like to get the job done as quickly as possible.”

Although regional staff recommended a more aggressive rate increase, which would have seen rates jump by $154 in 2016, $154 in 2017 and $81 in 2018 before dropping to annual increases between $42 and $51 until 2025, councillors agreed to a compromise between staff’s suggestion and Heath’s motion to spread the costs over a longer time.

The rate hike will also provide enough funding to eliminate the need to issue debt to repair or replace water and wastewater infrastructure in the future, the region said.

“Compared to the 2015 budget, $243 million less in debt would need to be issued in the future, resulting in interest cost savings,” an emailed statement said.

“This also reduces the region’s overall debt burden, which is favourable.”