Water rates could jump 20 per cent over five years
Draft budget sees increases in charges, 2.98 per cent property tax increase
Shane Magee
Northern News Services
Published Wednesday, October 22, 2014
SOMBA K'E/YELLOWKNIFE
Homeowners could be paying roughly 20 per cent more than what they're paying now for their water bills in five years to cover the costs of a new water treatment plant and inflation, an early version of next year's city budget shows.
Carl Bird, director of corporate services, outlined the increases in an update of the draft budget during a presentation to the city's Municipal Services Committee meeting Monday.
Proposed changes would see increased rates on the access fee, the demand charge and piped metered water, which are charges on water bills. The plan, which has not been voted on by council, would see increases on these charges of 10 per cent in 2015 through 2017. Then eight per cent in 2018 and five per cent in 2019.
What that means is a person paying $94.93 in 2014 would pay an additional $5.65 in 2015.
"The major cause for the water and sewer fee increase is the new water treatment plant and the cost of operating it," he said.
"Other than that, it's just regular inflation."
In the same budget presentation, Bird said the city expects to spend $8.3 million next year in capital costs for the treatment plant, which has been reported to cost a total of $30.2 million.
In 2009, the GNWT adopted federal guidelines that recommended surface water used as a drinking water source undergo a filtration process, which the current city treatment plant doesn't do.
The city's existing pumphouses were built in 1948 and 1969 and are reaching the end of their lifespan, according to the city's website.
As well, the solid waste user fee is projected to jump five per cent over the next three years.
Meanwhile, city administration is planning for a smaller property tax rate rate increase next year than anticipated.
When administration presented the preliminary 2015 budget numbers in May, the tax hike was pegged at 4.68 per cent.
Now, the increase is projected to be 2.98 per cent, said Bird.
The tax rate jumped 3.11 per cent in 2014.
The difference between the current numbers and those from May comes from growth in property assessment values, which are set by the city.
Bird said assessment values increased by $418,000.
"It means we have a bigger revenue base to start 2015," he told city council. Property assessment values are set by the city.
As well, the city will dip into its accumulated surplus fund. Bird didn't say how much the amount from that fund would be.
Councillors at the meeting said they think more can be done to prevent a tax hike.
"I'm going to be working very hard to see a zero per cent tax increase," said Coun. Niels Konge.
Coun. Rebecca Alty also said there should be no increase. She said there is room to cut spending in operations and maintenance budgets to meet that target. The city will be holding public engagement sessions about the budget later this month, and the draft budget will be presented to the Municipal Services Committee Nov. 17 which meets at noon. From Dec. 8 through Dec. 10, special committee meetings to review the draft budget will be held at 5 p.m.
Adoption of the budget by council is expected on Dec. 15 at a special council
meeting at 7 p.m.
