Beginning in 2022, residents of the Grey Highlands will see a 10 per cent increase in water and wastewater rates every year for five years.
“As directed during the Jan. 18 meeting, DFA Infrastruture International Inc. prepared the financial plan with the increase for water and water phased in at 10 per cent per year for five years commencing in 2022, and added in the wastewater alignment to the 100 per cent multiplier be phased in over the course of the five years,” stated the Feb. 17 staff report to council.
The six-year financial plan was established as part of the requirement for the municipality’s Drinking Water License, which, according to municipal staff, was set to expire for Markdale and Kimberley-Amik-Tailsman on May 15.
“We're faced with a hard deadline that has been extended a few times now. So, we don't really have the luxury of time,” stated councillor Cathy Little.
The financial plan had been due to the provincial bodies in December, however the municipality received an extension, which allowed the council to receive additional analysis from DFA.
“I'd rather get this passed today so that we can get that Drinking Water License and continue to talk about this through the year in front of us so that we can have something more concrete in terms of the way forward this time next year when we're looking at budgets again,” said Aakash Desai, deputy mayor of Grey Highlands.
DFA presented its study to Grey Highlands council in October and since that time the council has been debating how to proceed with the financial plan and rate increase.
At the council meeting held on Wednesday, council members approved the proposed financial plan at the 10 per cent increase, every year for five years rate, as opposed to a full 50 per cent increase to both utilities in a single year in 2022.
For water, based on residential consumption of 180-cubic-metres or less, the current approved 2021 rates produce an annual water bill of $807.59.
A 10 per cent increase would produce a bill of $887.99 in the initial year. Every year following, the rate would increase by an additional 10 per cent for five years, resulting in an annual bill of $1,300.52 in 2026.
For wastewater, based on residential consumption of 180-cubic-metres or less, the current approved 2021 rate produces an annual bill of $559.84.
A 10 per cent increase would produce a bill of $615.60 in the initial year. The rate would continue to increase by 10 per cent every year for five years and would result in an annual bill of $902.18 in 2026.
Prior to officially approving the rates in 2022, council has asked staff to bring back an update on growth projections over the five year period and possible debenture options for the water tower.
With the large increase to the rates, council has also asked that the water and wastewater servicing plan be reviewed prior to undertaking the next five-year study.
