Saint John raises water and sewage rates

Saint John council approved a $36 increase in the water rates in 2012 on Monday, amove that caused some councillors to express concern about the impact the higher costs could have on some families in the city.

Councillors have long known they will have to keep raising rates for harbour cleanup and to pay for the new $170-million water treatment system.

Deputy Mayor Stephen Chase and Coun. Mel Norton said at Monday nights council meeting they are concerned the $972 flat rate for water and sewageis the highest in the province and maybe the highest in Canada.

The city politicians say they are concerned that those rates are projected to rise steeply in coming years.

Norton said he has "difficulty" with seeing water rates continue to increase.

He said he is concerned the citys flat rate is much higher than other New Brunswick communities, including some nearby towns.

"Right next door, apparently, Rothesay has lower water and sewage rates yet demographically its probably a community that can actually afford higher rates," Norton said.

"And here we are in Saint John with a demographic that can probably least afford increased water and sewage rates and we're talking about doing that."

This isn't the first time the city has raised its water and sewage rates recently. Saint John hiked its rates by $72 in 2011.

City managers point to Saint John's rocky terrain as a key reason for the higher costs.

And Coun. Christopher Titus said the city has no choice but to meet new federal water quality standards.

"What are your options? Turn the taps off, don't do the water?" Titus said.

The new budget includes $50,000 to study the merits of a public-private partnership for the water system in case that option will somehow cushion the cost.

Financial problems

Saint John has been struggling with many difficult financial issues in recent years.

The city has a $163-million pension deficit and it is trying to have the rules changed as a way to lessen the financial burden.

The city hopes to cut $75-million out of its pension deficit by ending cost of living increases in the pension plan for workers and suspending them for retirees.

The plan was created by an act of the legislature and the cuts cannot be made without its approval.

The city's estimated 1,600 workers and its retirees have vowed to lobby the provincial government to keep their cost-of-living increases.

Saint John officials have said the other options to deal with the deficit would be major service cuts or a tax hike of well over $200 a year on an average home.

Several city councillors have said property taxes will not be increased to cover off the pension shortfall.