Iqaluit water rate hike to come with higher rebates for residents

Iqaluit city council's finance committee of the whole recommended a 2 cent/litre across-the-board water rate hike Thursday night, but residents won't be on the hook for the entire increase.

The blow to consumers is softened somewhat by an increase in the residential rebate the city offers, using a $1.2 million annual subsidy from the Nunavut government.

"We figured that somewhere around $100 was a reasonable amount for a family per month," saidIqaluit'sdeputy mayor,RomeynStevenson, explaining that the city juggled both the rate and the rebate to reach that number.

In a sample bill presented at Thursday night's meeting, a household currently paying $94 a monthwould see their bill rise to $115with the 2 cent rate hike.

Right now, the water rebate is set at .5 cents/litre, while water costs just over 1 cent/litre, meaning customers pay just over half a cent.

If the 2 cent rate hike is approved by council, residents would pay.7 cents/litre, thanks to a rebate of 1.3 cents/litre.

Elders may be exempt

The finance committee also recommended that elders who own their own homes be exempted from proposed changes to the water rate and water rebate.

Commercial and industrial water rates are also set to rise to 2 cents/litre, from about 1.5 cents and 1.7 cents, respectively. Those customers do not receive a municipal water rebate.

The rate hike is projected to eliminate the deficit in the city's water and sewer fund in two years.

"The government of Nunavut has said, and probably rightly so, that we really need to look at addressing those specific deficits, program areas, like sewage and water," said Iqaluit mayor Madeleine Redfern

"That's the unfortunate reality.There are costs associated with delivering [services] and we have not been charging enough."