Niagara-on-the-Lake water, wastewater cost could increase more than 10 per cent

It appears Niagara-on-the-Lake residents will be soaking up an increase on their water and wastewater bills in 2024.  

During a budget review committee meeting Tuesday morning, town treasurer Kyle Freeborn told council why the cost is going up. 

The town’s water fixed and variable rate increase is proposed at 10.8 per cent, while the wastewater variable and fixed rate is proposed to increase by 12 per cent.  

The total impact for an average user if approved by council would be $107.29, or $10.99 per month, he said.  

Freeborn explained that the region is responsible for treating water and acts as a wholesaler when it comes to distributing it to Niagara’s 12 lower-tier municipalities, which are responsible for infrastructure and keeping it in good repair.  

The wastewater budget is driven by increasing regional treatment costs and declining water volume usage, he said. 

Coun. Sandra O’Connor asked why rates are increasing when people are using less water.  

Freeborn said this helps maintain the same level of service, but also means there is “less water to help spread that cost around,” and that it is put on ratepayers as a result.  

The town has also taken steps to keep the increase down in 2024 by putting just $365,000 into reserves, rather than $1.05 million as a recent study recommended, he said in his presentation.  

This has been done to “mitigate further rate increases,” said Freeborn, also noting that putting the full amount into reserves would cause a 19 per cent increase.  

The town has “substantial funds in the reserve,” totalling nearly $3.7 million, nearly $2.2 million more than what was recommended in the study, Freeborn said.

Forty-one per cent of the water and wastewater budget is related to regional charges, said Freeborn, and has increased by about $421,000 since last year.  

Freeborn’s presentation was received for informational purposes — council has yet to rubber-stamp its 2024 budget.  

In a separate report, council also approved for information a breakdown of employee and contract costs and how they compare to last year. 

The town is projected to spend more than $1.5 million on 12 full-time employees, and $82,000 on contracts. 

Last year, the town spent more than $116,000 on outside contracts, and spent $1.41 million on 12 full-time employees. 

Staff said in its report that these increases are “primarily reflective of changes in steps within the payband and estimated increases in salary rates.”