Fredericton water rate could rise 4% - Action News
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New Brunswick

Fredericton water rate could rise 4%

City staff in Fredericton are recommending yet another water rate increase in 2019.

Water and sewer infrastructure needs improvements, city says

Fredericton city staff push to increase water rates by four per cent, resulting in an average increase of $31.56 for residential water customers. (Tim Graham)

City hall staff are recommending yet anotherwater rate increase for Fredericton residents in 2019.

At a meeting in committee this week, councillorswerein favour ofincreasingwater rates by four per cent, resulting in an average increase of$31.56for residential water customers.

"Part of council's strategic approach to our infrastructure is to have the users who are currently using and paying taxes in our community to pay the full cost of those pieces of infrastructure and services," said Coun. Greg Ericson, who is also chair of the city's finance committee.

The quarterly service charge of $107.98 would climb to $113.90,and the consumption rate would go from $1.78 per cubic metre to $1.82. The rates went up this year as well.

AliciaKeating, the assistant director of finance,said the City of Fredericton's water and sewer infrastructure deficit would cost about $176 million to fix.

"In the past we haven't been investing enough in our infrastructure," she said."We realized that in themid-2000s."

Not just a Fredericton issue

The deficit is made up of old infrastructure that has expired and gone past its useful life inFredericton.

"We didn't do a lot of infrastructure renewal during the '80s and '90s, so we're basically getting to the point now where we have to replace a lot of pipe," she said.

Although Fredericton has lower water rates compared withother major cities in New Brunswick, Keating said rate increases arehappening acrossthe country.

"In order to get to a stable funding level, rate increases are required," she said.

The city started implementing water rate hikes in its long-term financial plan since 2013.

"We need to make timely investments in the infrastructure as required or it's more expensive in the future," Ericsonsaid.

"There will be larger increases and more of a rate shock in the future if we don't do marginal, planned and strategic increases to cover costs in a responsible way."

City council is expected to vote on the water rate increase before the year is out.

With files from Information Morning Fredericton, Phil Drost