Water and wastewater rates are rising in Innisfil as of April 1. Town council approved the increase for all InnServices customers.
The fixed rate and volumetric rate will each increase by five per cent.
“The rates were established to create a reasonable operating balance that would be held in reserves to meet asset renewal and replacement requirements, which are not covered by development charges,” a staff report stated. “The proposed rate change will ensure appropriate resources are available to maintain, repair and replace infrastructure, to ensure the continuation of safe, quality drinking water and treatment of wastewater for all residents.”
For residential customers, the increase translates into an extra $31.39 annually on average (based on 183 cubic metres consumed) for water and an extra $21.75 annually on average for wastewater (based on 158 cubic metres generated).
The utility is playing a bit of catch-up with its rate increase for 2023, explained Chief Financial Officer Glen McAllister.
“Over the last couple of years, InnServices rates have increased at less than what the rate study had suggested,” he said. “Five per cent across the board, water and wastewater, fixed and volumetric, is what was needed to bring the rates and the foregone revenue from prior years where rates were not increased as much as they should have been to start to recover.”
A revised rate study is on tap for InnServices, McAllister added, that should come into effect as early as 2024. That model will ideally correlate fixed rate increases to capital costs and volumetric rates to operating costs, narrowed down to water and wastewater. It will also have an enhanced emphasis on conservation through the volumetric rate and potentially provide savings to residents who take steps to reduce consumption.
“Even if you never turn on your tap, ever, there’s still a cost to having safe, potable, drinking water," said Mayor Lynn Dollin. “There has to be that right balance between having the amount of money to actually run the plant safely and distribute the clean drinking water, but at the other hand, try to incent people to conserve so that we can postpone the next expansion.”
This increase is separate from any increase to the municipal tax levy Innisfil ratepayers are facing as InnServices has no impact on that levy. As well, any new water or wastewater growth remains fully recoverable through development charges.
