Yellowknife (June 27/03) - Yellowknife needs to raise about $1 million more next year to begin balancing its water and sewer account deficit, say city administrators.

Much of the city's water and sewage system is feeling its age. Without more money, it could collapse, they warn.

The remedy is an increase in water rates, said Greg Kehoe, public works department director.

"We need around $1 million in the first year of rate increases" to balance the system, he said.

In 2002, the city took in $2.3 million in water fees, but needed a $500,000 grant from the territorial government to cover $2.8 million in capital fund expenses.

Robert Charpentier, city finance department director, said the city cut back spending on water and sewer maintenance in previous years to compensate for the shortfalls in revenue from water.

"All our costs are increasing and eventually I'd like to see council make some rates that will decrease the gap in capital infrastructure replacement," said Charpentier.

Charpentier said more studies are needed to determine exactly how much of an increase is needed.

"But regardless of what they do and when they do it, we're going to recommend that council raise water rates" for the first time since 1996.

Kehoe said "there is a lot of work that needs to be done" on Yellowknife's aging water and sewer lines. Some were laid down in 1948.

Along with the underground water and sewer lines there are 5 pumphouses, 10 lift stations and 10 km of water surface line that need attention, he said.