Expect to pay more for water and sewer in the new year.
Dryden Council is expected to approve a 10% rate increase on Monday.
Treasurer Steven Lansdell-Roll says they have no plans to automatically increase rates moving forward unless it’s required.
“I can see a much more manageable number. I do agree that when you see a 10%, it’s a shocking number when you’ve had zeros. This is more of a catch-up that is required for 2022 and moving forward I would anticipate that they would be much more manageable.”
Lansdell-Roll says there is an immediate need to build up reserves for capital projects including a lot of underground work.
“Planning for the future. We have a water treatment plant that is aging. We are investing in it to get to its extended life but we need to start planning and building our waterworks reserve so that when the time comes to have the new water treatment plant we’re not solely relying on debt.”
Lansdell-Roll says a separate account has now been established specifically for the Water/Sewer/Wastewater department and that’s why Council is being asked to approve the rate hike.
Revenue from previous water and sewer rate increases went into a general account and wasn’t designated for related and needed capital work.
Lansdell-Roll says a 10% increase would provide $184,000 in the Waterworks Reserve Fund and roughly $139,000 in the Sewer/Wastewater Reserve Funds.
Currently, the Waterworks Reserve Fund has a balance of $39,077 and the Sewer/Wastewater Reserve Fund has a balance of $135,918.
Lansdell-Roll points out the approved 2016-2021 water financial plan called for 4% annual increases each and every year.
However, he says since 2012 there have been only two increases.
The first was a 10% increase in 2014 and the other a 5% hike in 2019.
Lansdell-Roll notes Council approved an updated water financial plan last year and it called for annual increases of 6.3% but no rate increase was applied this year.
