3.8% water rate increase lower than most Municipalities

North Bay residents will likely see a 3.8% increase to water rates come January 1, 2008. The motion will be presented for three readings on Monday, December 17.

A typical monthly residential flat rate water/sewer bill or a metered consumption charge would increase by about $2.02.

69 out of 80 Municipalities, reporter higher rates than the City of North Bay.

The rate increase will allow for a breakeven budget for 2008. The increase is also in accordance with the Sustainable Water and Sewage Systems Act as well as the Municipal Act.

The Committee Agenda report says:

“In 1998, City Council adopted a full cost recovery policy for the water and sanitary sewer systems, established a Water and Sanitary Systems Reserve Fund and authorized the Chief Financial Officer to transfer any year-end surplus (or deficit) generated by water rates and or the sewer charge to (or from) this reserve fund.

The reserve fund had a balance of $1,122,638 at the beginning of 2007.

The water and sanitary sewer system operations is projected to end the year 2007 with a deficit of $369,998, resulting from higher maintenance and restorations costs and slightly lower revenues generated.

The deficit will be funded from the (City) reserve fund. The reserve fund balance at the end of 2007, after offsetting the projected deficit, is estimated to be 811,000.

The rate increase, which was originally set to begin March 1, will generate an additional $110,000 in revenue for North Bay.