Water and sewer rates are going up this year, 2% for homeowners in Fort Frances and 4.25% for the commercial sector.
For homeowners, it will increase the bills by $22.20 for the year or $1.85 per month.
Commercial customers that use water meters will see the rates go to $3.75 per cubic metre and $42.9 per cu. metre for institutional customers.
Interim Operations Manager Craig Miller says it will generate an extra $25,000 over last year for future upgrades.
“We’ve asked for an additional almost $100,000 for the water treatment plant. That ask will be in the capital budget for the next two years to keep on replacing pumps, as well as we have other renovations in the plant, lift station rehabilitations, to undertake ongoing roadworks that are funded through our capital reserves,” says Miller.
“So, while the treasurer often tells me that we’re healthy in the reserves, I let her know how much we plan to spend in the upcoming five years, it’s not quite as healthy at that point.”
The water and sewer reserve fund is estimated at $10.7 as of the end of 2023.
As of 2020, over $15,000,000 in improvements were proposed in the coming years.
Based on forecasted consumption levels for this year, over $6 million will be raised through the water and sewer charges.
The public works department would like to explore other forms of generating revenue.
In a report to council, Miller notes other municipalities have implemented user fees associated with both dormant water services and unserviced lots with water and sewer services available.
He adds electrical and natural gas utilities have similar fees.
The increase is also an attempt to reduce the gap between residential and ICI ratepayers.
Residential ratepayers have long subsidized the charges paid by the commercial sector on a per cubic metre basis.
With the rate increase, there is still a 50-cent difference in water rates and a 35-cent gap in sewer charges.
Councillor Mike Behan says he would have liked a slightly higher residential rate while lowering the commercial rate to 4%.
“I am a little bit hesitant, seeing it was 4.25% for the IC increase versus 2% for residential. That does concern me a little bit. I am thinking that I want to see the gap reduced,” says Behan.
Behan proposed a scenario that would have generated an extra $40,000 in revenue but could not get enough support from the rest of council.
