Sudbury looking at 7.4 per cent water rate bump — Mayor wonders if it should be higher

Turning on the taps may soon cost more in Greater Sudbury.

After no increase to the water rate last year, the city's finance committee met Tuesday night and recommended a 7.4 per cent increase this year.

There is a $32-million gap in infrastructure spending on water and waste water services, said Tony Cecutti, the city's manager of infrastructure services. He added that the average age of a city pipe is more than 50 years old, and that's a concern.

"It's time to worry about these things. It's time to do a financial plan," he said. 

The rate hike won't be enough to do all the necessary upgrades and replacements, he noted, but at least it's a start.

"Any monies that are available from a capital perspective, we will spend them responsibly on what we believe the highest priorities are. If the money's not available, then it will have to be deferred and it comes with some risk."

Others on council also expressed some anxiety about the state of the city's infrastructure.

"I'm worried about a major disaster because we haven't kept up with our investment," said Ward 5 councillor Robert Kirwan.

"This is an essential service, and if we don't maintain it, then it's going to cost us in the long run," said Ward 1 councillor Mark Signoretti.

Those concerns were echoed by the city's acting chief financial officer:

"Money can't always be tight. At some point, we're leaving a debt for future generations if we don't deal with it to some extent through the current generation," said Ed Stankiewicz.

Averting 'disaster'?

Mayor Brian Bigger suggested the city may need to consider an even larger increase to meet future needs.

"We need to just get started. We need to commit to moving towards a sustainable capital funding model," said Bigger.

The 7.4 per cent increase means the average household in Sudbury will pay about an extra $71 for water this year, which Ward 2 councillor Michael Vagnini explained this way:

"If you break that $71 dollars a year down to 52 weeks that's a $1.36, so I think that might put it into a little more perspective as oppose to the percentage, am I correct?", said Vagnini.

City staff explained the breakdown of the 7.4 per cent water rate increase:

• maintaining water/wastewater services - 3.8 per cent 
• increased capital investments - 1.8 per cent
• consumption decrease - 0.9 per cent
• biosolids management facility - 0.9 per cent

The water/wastewater capital budget was approved in the amount of $37.5 million, which will fund:

• water and sewer projects in coordination with roads projects - $9.9 million
• watermain and sewer lining projects - $2.4 million
• implementation of automated meter reading technology (reserve funds) - $0.8 million
• Copper Cliff wastewater systems upgrade - $8.4 million
• additional capital projects approved by Council - $600,000 

The proposed hike will be voted on during the Sudbury city council meeting on Jan. 12.

More information on the 2016 municipal budget process is available at www.greatersudbury.ca/budget.