City budget talks open with proposed water, garbage rate hikes

The city's 2017 budget talks kicked off Friday with proposed increases to the costs of garbage collection and water, but the latter could be going up less than in previous years.

Toronto Water forecasts a $32.9 million surplus this year, and spending is expected to be down by 1.6 per cent next year. The department is passing on that good fortune to ratepayers, recommending a 5 per cent rate increase rather than the 8 per cent that has been handed down in recent years.

"Today what we're saying to the City of Toronto [is]: 'You've paid your fair share and because of that your increased rates are going down,'" Coun. Gary Crawford, Mayor John Tory's budget chief,told council's budget committee Friday morning.

While a rate increase may seem at odds with a budget surplus, Lou Di Gironimo, the general manager of Toronto Water, said increases aren't tied to the department's annual needs.

"What we've been doing in the city for many years is forecasting out 10 to 15 years based on our long-term capital needs," De Gironimo told reporters at city hall.

"So the rates that we've been setting and that council has been approving are tied to the work that's coming down the road, and the use of the reserve fund."

• New water, garbage hikes to be revealed Friday

But the city's Solid Waste Management Services offered a different outlook for councillors. The department is recommending a blended 3.9 per cent increase across all customer use.

When looking at the cost of bins, for example, the extra-large bin would cost $435 next year, up $24, while a large bin would cost $316, up $20.

The cost of a medium bin would rise by $15, while a small bin would go from $12 to $30, the largest percentage increase.

Currently, downsizing a garbage bin is free. The department is proposing a $25 charge.

"I was a bit taken by surprise," Coun. Janet Davis said Friday.

Charging residents to downsize their trash bin will discourage them from reducing their waste, she said.

"We're going to find that residents will continue to use larger bins and not recycle the way they should."

Crawford was also unhappy to see increased costs for bins.

"I don't want to see major increases," he said. "That's a non-starter for me."

The department defended the increases, saying they are necessary to maintain an aging garbage fleet and to move away from going into debt to fund garbage collection.

Gross expenditures for the department are expected to rise by 3.9 per cent, while revenue is expected to drop by about 2.6 per cent, Jim McKay, general manager of Solid Waste Management Services, told the committee.

Council's budget committee next meets on Nov. 18.