Water and sewer rates are going up 5% in the City of Dryden.
The increase takes effect on December 28th.
Treasurer Steven Lansdell-Roll says budgeted revenue this year is nearly $4.6-million.
Lansdell-Roll says they aren’t achieving those levels due to consumption decreases and the hike just get them to the break even budget level.
The City right now is looking at a $236,496 shortfall.
A 2017 consultants report to Council recommended a 4.1% annual rate increase for the next 15-years but Lansdell-Roll can’t see that happening.
He says once they establish a solid base, he doesn’t anticipate another hike in 2020, but maybe again in 2021.
Lansdell-Roll says once their debt is at a more manageable level, maybe they can start looking at financial plans and allocate money towards capital needs or reserves at that time.
The Water reserve currently stands at only $139,000, while the Sewer/Wastewater Reserve had a 2017 balance of $323,000.
The 2017 document also found that 74% of City water system assets (with a value of $38-million) are in poor or very poor condition.
32% of sanitary services assets (with a value of $20.7-million) are in poor or very poor condition.
The report also stated that with the estimated backlog, the aggregate investment in infrastructure that has been deferred over previous years was $22-million for water system assets.
The rate increase survived a 3-2 Council vote Monday night.
Shayne MacKinnon voted against the hike noting profits from water have been used to benefit City revenues so people who pay water bills are fronting the costs for everyone.
Michelle Price stated she wanted more information and time to investigate other options.