BY TRACEY DUGUAY
There?s gold in d?em dere pipes. Well, not exactly, but pretty darn close as Sudbury residents brace for another 4.5 percent increase in water and wastewater rates.
The rate increase was revealed during a budget meeting Wednesday. This means it will cost the average residence about $32 more a year, or $2.22 per month.
While this amount may not seem substantial, especially when compared to last year?s 7.5 percent, it represents a major hike compared to 2001 rates. In the period from 2001 to 2005, water and wastewater rates have increased by about 30 percent, resulting in an extra $15 per month or $184 per
year for the average consumer.
The rate increases are expected to continue until at least 2012 as Greater Sudbury deals with inflationary and regulatory costs, higher energy costs, and a crumbling infrastructure.
?You?re supporting a larger infrastructure than anywhere else in this country,? said Alan Stephen, general manager of infrastructure and emergency services for the city, to city councillors.
Half of the money used from the increase will go into the Sustainable Capital Assets Management Plan (SCAMP) while the balance will be used to pay fixed costs.
The water and wastewater department is continuing to look for other ways to save money in order to minimize rate increases. These plans include trying to pinpoint leakages in water pipes and going forward, the elimination of costly infrastructure components like wastewater lift stations.
However, another rate increase didn?t sit well with some councillors like Andre Rivest (Ward 3).
?Enough is enough,? he said. ?I said it last year and I?m saying it again this year. You say ?no? and send a message to the province.?
Saying ?no? isn?t an option for councillors though, as was explained to Rivest last year by then-city treasurer Sandra Jonasson. The true cost of supplying water and wastewater must be recovered by municipalities, as outlined by legislation (still not passed) introduced by the Harris Conservatives in 2001.
If the money isn?t covered through an increase water and wastewater rate, it would just result in an increase to the tax levy.
Ward 1 Councillor Terry Kett commended council on implementing the full cost recovery model recommended by the government, even though other municipalities haven?t implemented it yet.
?It shows the real cost of going to the tap and turning on the water,? he said. He added it?s time people understand just how expensive it is to deliver clean water and provide wastewater services.
?It?s the only thing I think the Harris government did right.?
Kett pointed to a graph presented at Monday?s meeting comparing the cost of property taxes and water/wastewater charges in various Northern Ontario communities. Sudbury?s property taxes are the lowest, while its water/wastewater charges are the highest. But if the two elements are combined for each municipality, Sudbury falls directly in the middle for total costs; Sault Ste. Marie and Timmins are lower, while North Bay and Thunder Bay pay more.
Other councillors were worried they ?jumped the gun? by implementing the full cost recovery policy too soon, regardless of whether it?s better in the long run for the community.
?I don?t believe you jumped the gun at all,? replied Stephen. ?You?ve taken a long-term approach.?
His words were a small consolation to Ward 3 Councillor Ted Callaghan. He stated sardonically council wouldn?t be recognized for creating a first-class system.
?All we?ll get credit for is what happened to the water bill,? he said. Callaghan also worried that the amount of the water bill would start to resemble a tax bill if the costs didn?t start to stabilize.
In keeping with the Municipal Act, a public meeting will be scheduled to discuss the proposed 4.5 percent for 2006. It?s expected the meeting will take place in January, but the date and time has not yet been finalized.
For more information on the city?s wastewater treatment process, visit www.northernlife.ca/wastewater.
