Fredericton water rate could rise 4%
Elizabeth Fraser | CBC News | Posted: October 25, 2018 5:55 PM | Last Updated: October 30, 2018
Water and sewer infrastructure needs improvements, city says
City hall staff are recommending yet another water rate increase for Fredericton residents in 2019.
At a meeting in committee this week, councillors were in favour of increasing water rates by four per cent, resulting in an average increase of $31.56 for residential water customers.
"Part of council's strategic approach to our infrastructure is to have the users who are currently using and paying taxes in our community to pay the full cost of those pieces of infrastructure and services," said Coun. Greg Ericson, who is also chair of the city's finance committee.
The quarterly service charge of $107.98 would climb to $113.90, and the consumption rate would go from $1.78 per cubic metre to $1.82. The rates went up this year as well.
Alicia Keating, the assistant director of finance, said the City of Fredericton's water and sewer infrastructure deficit would cost about $176 million to fix.
"In the past we haven't been investing enough in our infrastructure," she said. "We realized that in the mid-2000s."
Not just a Fredericton issue
The deficit is made up of old infrastructure that has expired and gone past its useful life in Fredericton.
"We didn't do a lot of infrastructure renewal during the '80s and '90s, so we're basically getting to the point now where we have to replace a lot of pipe," she said.
Although Fredericton has lower water rates compared with other major cities in New Brunswick, Keating said rate increases are happening across the country.
"In order to get to a stable funding level, rate increases are required," she said.
The city started implementing water rate hikes in its long-term financial plan since 2013.
"We need to make timely investments in the infrastructure as required or it's more expensive in the future," Ericson said.
"There will be larger increases and more of a rate shock in the future if we don't do marginal, planned and strategic increases to cover costs in a responsible way."
City council is expected to vote on the water rate increase before the year is out.