Thunder Bay council steps toward sewer rate increase

City councillors in Thunder Bay tentatively adopted a plan Monday night to increase the sewer surcharge on water bills.

The increase would help lower debt, and create a sewer reserve fund over two decades.

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Councillor Larry Hebert said the environment division should also look at putting waterlines outside of city limits, to grow revenue.

"Can you produce some information for us on potential ways of increasing our sales, [and look] at places like Shuniah, other places that are interested [and] corporations that are on the border?"

The surcharge increase would cost the average homeowner about $80 more per year.

Administration says it would be the largest increase required in many years, if their projections are accurate.

Councillor Shelby Ch'ng was the only councillor to voice a concern over the increase in rates, saying it will be "a tough sell" to her constituents.

Rebecca Johnson took some issue with the fact the city is projecting some water consumption to decline and the resulting surcharges over the next few years, and levelling out.

But she noted a caveat in the documentation:

"On page 10 it says, actual results may vary significantly from projections.' So, what I guess I'm getting at here is what the potential is for this? What we're getting here is what we've got right this minute. Does this mean in another year it could be significantly different? And what could be the top limit? That bothers me a little bit."

Joe Virdiramo wanted to know if the city could perhaps institute these changes over a couple of years instead of just one to make it a bit easier on the ratepayer

Administrations goal is to have a $25 million reserve fund in 20 years to work with capital expenditures.

No actual decisions were made Monday night, as it's a first report. However, often what the first report says is generally accepted by council in the end.