Fredericton council considers water rate hike for 2020

Fredericton city council is once again considering a water rate hike for the new year, which will add an estimated $1.75 to the average monthly residential water bill.

City staff presented the water and sewer budget to council on Monday nightas part of the city's annual budget process. Staff recommended the increase so the city could keep up with infrastructure upgrades.

"The city is primarily concerned with getting water to our customers in a clean and responsible fashion. The rates reflect our need to address our infrastructure deficit," said Coun. Greg Ericson, chair of the city's finance committee.

"We've got a long-term infrastructure deficit plan at work in the city, and as the system gets older, we have to replace it in a timely fashion to prevent water breaks and other problems."

Water and sewer rates would both climb from $0.91 to $0.93 per cubic metre. The quarterly service charge would rise from $113.90 to $117.20.

Updating city pipes

The increase is part of council's 10-year plan to update city pipes. Council is in the seventh year of increasing ratesbut there's still a lot of pipe that needs to be replaced, according to staff.

The 10-year plan is meant to ease in the increases, rather than implementing a single big rate hike.

Trent Brewer, manager of fleet and utilities, said many pipes need to be replaced before 2052, when another set of pipes will need to be replaced.

"From 2012 to 2052, that's our catch up period," said Brewer. "It will be a push to get all of that pipe installed, but we're definitely headed in the right direction."

As a result, Ericson said Fredericton residents can continue to expect rate increases in the coming years.

If approved as part of the 2020 budget, the new rates would take effect in the second quarter of the new year.