Newmarket homeowners’ water bills will be increasing by an average of $21 annually starting next year under York Region plans.
Regional councillors approved the hike in water and wastewater rates by 3.3 per cent annually for the next six years, starting in 2022. This comes after two consecutive years of not raising them during the pandemic.
The move aims to get those services to full cost recovery, adding enough to reserves over time to ensure infrastructure can be replaced. The measure passed by a 12-3 vote today.
“Maintaining these assets in a state of good repair is paramount to the safe delivery of water and wastewater services,” environmental service director of business planning and operations support Michelle Swan said.
The increases are lower than the nine per cent raises implemented between 2009 and 2019 in the bid to reach cost recovery. Skipping increases over the past two years resulted in a $28.24-million shortfall for asset management reserves. But staff said that will be covered by the proposed increases.
Markham Regional Councillor Jack Heath questioned the increases and asked about keeping it closer to the inflation rate.
“I still find this too fast. I just think we should find a way to say to our residents we’re keeping the water rate increase to inflation, or just above it,” Heath said.
York's average water bill is approximately $1,027 annually, according to a staff report, lower than other regional municipalities with a two-tier delivery system.
Newmarket Mayor John Taylor, who voted in favour of the increases, said it would make a big difference to reserves to cut the increases. He said many residents are not homeowners, and plenty of homeowners have not suffered financial hits in the pandemic.
“The amount you’re saving per household is tiny,” Taylor said, adding many residents did not lose jobs, while having less opportunity to spend on recreation. “At least 50 per cent of homeowners had more money in the bank than they did when COVID started.”
The staff report notes an April 2021 report by the Conference Board of Canada found disposable income rose in the region by 7.8 per cent in 2020, given pandemic-related restrictions.
The region said a 2021 survey found that roughly half of residents considered water rates fair, which is in line with surveys on attitudes elsewhere in Canada. Staff also said York was the only GTHA municipality not to increase rates the past two years.
Newmarket Deputy Mayor Tom Vegh, who also voted in favour, said it amounts to about 45 extra cents per week per household.
“We’re not talking about any real significant difference that any household would notice,” Vegh said.
The change will go into effect starting April 1, 2022, but will need final approval by council.
