Fredericton council OKs water rate hike for 2019

Fredericton residents will likely see a jump in their water and sewer bills next year after the rate increases were approved by city council on Monday night. 

Water rates will increase by four per cent, resulting in an average increase of $31.56 for residential water customers. 

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.  

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"We're still getting closer, but we're not quite yet at the cost of the system," said Coun. Greg Ericson, who is also finance chair with the city.

City staff made these recommendations at the last budget meeting, and after taking a week to consider it, they were approved by city council.

The increases are part of a multi-year plan to reduce the water and sewer infrastructure deficit and Ericson says  there will be more water rate increases in the future. 

"Staff looked very closely at the infrastructure deficit number, how it's calculated, and from year to year, various elements of that will change, as the increase in materials go up from various cost of living factors," he said. "Labour goes up every year."

In a previous interview with CBC News, 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.

The deficit is made up of old infrastructure that has expired and gone past its useful life in Fredericton.

As a result, the city started implementing water rate hikes in its long-term financial plan since 2013.

"We do have to keep an eye on how that figure is calculated, and make sure that our rate increases, and the rates themselves cover the renewal of the system moving forward."

Helping low-income households

Coun. Ericson said the city will be looking at how to make rates more affordable for people who can't pay the bill. He also said the provincial government would be better suited to help low-income households. 

"They have access to income information that we don't have access to," said Ericson. 

"There's a lot of things that can be done, but council hasn't had a chance to look at systematically, all the policy levers that are available to us, or the things that would have the most impact on the people who need the help."

If the city's final budget is passed in December, these increases will start in the second quarter of 2019.