Council to get options on how much utility fees should rise
Struggling to update aging infrastructure
KITCHENER — Council will be looking at a range of rate increases for utilities when it begins to tackle the 2018 budget.
Residents in Kitchener have had to swallow annual increases of close to 10 per cent to their water, sewer and storm water bills for the past three years as the city has tried to speed up its replacement of aging water and sewer pipes.
But during deliberations over the 2017 budget earlier this year, many members of Kitchener council made it clear they’re not happy approving such steep increases.
A 30-year program to replace aging water and sewer pipes was approved in 2002, but in 2015 city staff sounded the alarm, saying steep increases in rates were needed until at least 2026.
The increases, if approved every year, will mean that an average Kitchener household will be paying $1,838 for water and sewer services by 2026, compared to just $746 in 2014.
But given the reservations council expressed at budget time in January, city staff say that in September, they will provide council a range of options, rather than just one recommended increase. They’ll also report on what other cities are doing, and will provide context: a smaller increase could mean more water main breaks, said Denise McGoldrick director of operations for environmental services.
“It’s really about looking at our risk tolerance,” McGoldrick said.
Councillors made it clear affordability has to be factored in to any rate increases.
“They (rates) are not going to decrease any time soon,” said Coun. Kelly Galloway-Sealock. “We need to try and help residents deal with that.”
Council also got the results of a $15,000 statistically valid survey of water and sewer customers, done in April by Environics Research.
The survey suggests many people may not like seeing their utility bills go up, but they understand the need. Fifty-one per cent said the city’s top priority should be to replace and maintain infrastructure, with just 21 per cent saying the focus should be to keep rates as low as possible. But fully 25 per cent chose an option the survey didn’t even offer, saying the city should strike a balance between maintenance and low rates.
The survey also suggests the city is having a hard time getting its message across to its customers. Despite a communication plan to explain the rate increases, including two bill inserts, a newspaper ad and social media efforts, only 47 per cent of customers were even aware of the city’s plan to replace infrastructure.
And many people don’t see city water as being of great quality. Only 35 per cent said they were very satisfied with drinking water quality, a figure that Coun. Zyg Janecki said he found surprising. “I figure that we here in Kitchener, Ontario, Canada have excellent water,” he said, especially compared to developing countries. “Yet when I go to the grocery store I see people walking out with all this bottled water.”
The report in September won’t be the full story on utility rates. City staff are also carrying out a study on whether to switch to a blended rate, with a basic amount everyone would pay regardless of how much water they used. That study won’t be done until early 2019.