Waterloo council ponders $73 in extra taxes, rates and fees

WATERLOO — Waterloo council is considering a $73 increase in city taxes, water bills and drainage fees for a typical home next year, an overall increase of 3.2 per cent that exceeds current inflation.

• Water bills would rise by $40. The increase at 4.5 per cent would boost next year’s water bill to $926 for a typical household.

Waterloo council has more than doubled water bills since 2006. It plans to hike water rates by a further 39 per cent by 2028.

• City taxes would rise by $25. The increase at 1.9 per cent would raise city taxes on a typical home to $1,303. Such a home is valued at $384,000.

• The stormwater drainage fee would rise by $8. The increase at six per cent would raise next year’s fee to $142 for a medium household.

The drainage fee is a former tax. Council has doubled it since 2014 and plans to hike it by a further 46 per cent by 2028.

Council expects to finalize its water and tax budgets Jan. 21 and Feb. 11. It has launched a website at engagewr.ca to solicit feedback. Inflation is tracking at 2.4 per cent for 2018 but has averaged below two per cent over a dozen years.

“We try to keep the tax increases as modest as we can,” Mayor Dave Jaworsky said. “It’s our first cut at it.”

Council says it is escalating water bills to pay for clean drinking water, and to improve sewage treatment to help clean the Grand River. It is escalating drainage fees to dredge more ponds that hold rain, to prevent flooding and erosion. Work is planned on downtown Silver Lake next year, along with other drainage ponds.

Council is considering escalating city taxes to hire another planner, and spend more on libraries, pathways and neighbourhood associations.

City council is responsible for roughly one-third of residential property taxes. Regional council delivers most public services and levies more than half the bill. The rest is school taxes levied by the province.

The last Waterloo council increased taxes and drainage fees by 13.3 per cent over four years, approaching double the rate of inflation.

One year from now Waterloo council is expected to consider a tax increase lasting 11 years to help fix crumbling roads, parks, trails and buildings.

This increase is not part of the 2019 budget.

Under a proposal unveiled in April, city taxes would rise almost four per cent a year between 2020 and 2030, aiming to put an extra $15 million annually into city coffers for civic repairs.

Beginning in 2032 when Waterloo has fully paid off its RIM Park recreation complex, council would redirect almost $2 million a year in RIM debt payments toward civic repairs. This would continue until 2042.

If council does not spend more on maintenance, city hall predicts 60 per cent of its tax-funded assets will be in poor shape by 2042.

With extra spending, roads and buildings would still decay but at a slower pace.