Fredericton council tentatively approves increase to water rates

Fredericton city council approved in principle a rate increase for water at the council-in-committee meeting on Monday night.

Alicia Keating, the assistant director of finance and administration, presented the 2017 water and sewer proposed budget at the meeting.

She said most money would go toward an improvement in infrastructure around the city.

The infrastructure in the city is aging and needs to be replaced, otherwise it will cost the city more in the future, according to Coun. GregEricson, chair of the finance and administrationcommittee.

"Over time, we're going to have a water and sewer rate that actually meets the cost of the system and then we'll start chipping away at the deficit we've amassed," said Ericson.

Trent Brewer, the department manager, said at the meeting that they are behind on improving their infrastructure.

He said the Nashwaaksis area especially needs some work.

Ericson said the plan is to continue with the rate increases, butcouncil is still paying attention to the taxpayers.

"We could also slow down the rate increases if council perceivesthat it's becoming a challenge so far as affordability goes to the taxpayers," said Ericson.

"Largely[taxpayers] are respecting our desiresto maintain the infrastructure and take advantage of prevention in terms of spending instead of waiting for things to fail."

Bump in fixed rate

The proposed 2017 budget has the fixed rate increasing for customers in the new year.

Currently half of people's bill is a fixed rate while the other half depends on the consumption. The new budget would see the fixed rate increased to 60 per cent.

That means the average household would pay about $10 more a quarter equalling about $40 more a year for their water services. The consumption rate would stay the same.

Keating said people in Fredericton have done a better job at conserving water, but that means the city doesn't make as much money off the customers. That's why they want to make the change.

The budget was tentatively approved at the council-in-committee meeting, and will wait further approval once the entire city budget is approved by council.