Kitchener water, sewer rates will continue to rise, says councillor

Kitchener residents who are unhappy with risingwater and sewer rates will just have to get used to the idea, the chair of the city's finance and corporate services committee says.

"If we don't maintain, we don't pay for the water system, one day you're going to go to the tap and it's not going to work," Coun. Scott Davey told The Morning Edition host Craig Norris Tuesday.

• Waterloo Region approves nearly 3% property tax hike

On Monday night, Kitchener city council approved a 9.2 per cent hike in water and sewer rates.

Davey said Kitchener is not the only municipality facing increased costs.

"The increases are set to keep going. I want to be 100 per cent clear about that," he said. "There isn't really a whole lot of flexibility in that figure. So, yes, they are set to keep rising every year, as is happening across the country."

The increases are set to keep going. I want to be 100 per cent clear about that.- KitchenerCoun. Scott Davey

In the region, Kitchener residents will be paying the most for storm water, sanitation and water upgrades. Davey said that is in large part because the city just hasn't been increasing rates enough in the past.

"To be completely frank, we haven't been raising the rates that we should have been raising for the last, probably, 30 years to make sure it was adequately funded. Part of that was planned. In the recession of 2008, we tried to do everything we could to lower the impact, but now it's something we have to deal with."

'Cost went through the roof'

Daveysaid he understands residents are unhappy that water and sewer rates continue to rise, and he hears from constituents regularly, but people have to understand the costs to provide these services are also going up.

Davey said when staff started budgeting to replace pipes in 2002, they had no idea the cost would jump 200 per cent just a couple of years later.

"The cost went through the roof," he said.

As well, staff predictions that water pipes should last 70 or 80 years turned out to be incorrect when those same pipes started to leak after 40 or 50 years.

Property tax increase, gas rate decrease

Overall, Kitchener residents will see a decrease in how much money they need to give the city after the annual budget was approved Monday night.

Property taxes will increase 1.46 per cent, or an average of $15.

But gas rates decreased 19.02 per cent, or about $160 per household.

Overall, residents will see a $57 decrease this year, Davey said.

"I think it's the fourth year in the row or longer we've brought in among the lowest rates in the region. It's something we're proud of," Davey said. "We realize the residents want a tax rate increase at the rate of inflation and that's always been our target."

Other budget highlights

Along with property taxes and service rates, the city council also made a number of other financial decisions, some of which include:

• $250,000 to expand the city's Wi-Fi network to include sites such as Kitchener Memorial Auditorium, community arenas, as well as Victoria and McLennan parks. This money will be matched by the Canada 150 grant program for a total budget of $500,000.
• $50,000 to build new community gardens and develop existing gardens
• $180,000 over 10 years to develop neighbourhood festivals
• $750,000 to improve the central section of the Iron Horse Trail
• $2.5 million to be spent in 2017 for legislated upgrades to Kiwanis Park pool