Niagara Region Increases Water And Waste Water Rates

• “Despite The Rhetoric, … Regional Council Failed To Focus On Water And Waste Water Affordability For Niagara’s Cities And Towns And Ultimately Failed Niagara’s Residents And Businesses.” – Pelham Mayor Dave Augustyn

A Column from Niagara, Ontario’s Town of Pelahm Mayor Dave Augustyn

Pelham, Ontario Mayor Dave Augustyn

November 23^rd, 2015 -Some (Niagara) Regional Councillors congratulated themselves for approving a “combined 0.03 per cent reduction in the Region’s Water and Wastewater budget, resulting in a net operating budget of $108 million.”

A recent news release quoted the Regional Chair (Al Caslin)  that, “These reduced budgets show that our Council is focused on affordability for Niagara residents.”

This upsets me.

First, this misleads by telling only part of the story.

 Second, the facts show that the Region’s “zero budget guidance” did not focus water and wastewater affordability.

As you may recall, the Regional portion of your water and sewer rates pays for both the water and sewer treatment costs and delivery costs to 11 of Niagara’s Towns and Cities. The Region works with local staff to estimate the amount of water each municipality will sell to its residents and businesses and the amount of waste water it will send to the Region to treat.

Essentially, the Region wholesales water production and waste water treatment to the local municipalities. The local municipalities then add local distribution (water) and collection (sewer) costs to retail service to residents and businesses.

So, while a near zero budget change sounds good, it’s the impact on the customers (the 11 Cities & Towns) and, ultimately, residents and businesses, that really matters.

The Region charges 25 per cent of their water budget to the local municipalities as a fixed cost; that portion of the bill is increasing by the 0.3 per cent. But, what about the other portion?

The Region will recover the remaining 75 per cent at a set rate. Council increased that rate from $0.537 per cubic meter (m3) to $0.554 / m3; that’s a whopping 3.2% increase!

What does that mean for local Cities?

First, Cities will have to mitigate the Region’s 0.3 per cent fixed-cost increase on the fixed-cost portion of our water bills.

Second, the 3.2 per cent increase on the consumption portion of our bill means a huge uphill battle – we will need to recover nearly $970,000 of distribution savings / innovations or pass along the costs to consumers.

What about waste water? It’s a similar scenario. While the overall Regional sewer budget will decrease slightly (by 0.2 per cent), the Region expects to treat 2.0 per cent less waste water. This forces Niagara Cities to contend with 1.8 per cent increases in the costs per unit treated! That will force Towns to pass along another $853,800!

Unfortunately, despite the rhetoric, these significant rate increases show that Regional Council failed to focus on water and waste water affordability for Niagara’s Cities & Towns and ultimately failed Niagara’s residents and businesses.

(As Mayor of Pelham, Dave Augustyn also serves as a member of Niagara Regional Council and participates on several regional committees, including Public Work and Corporate Services which deals with budget matters.)

You may contact Mayor Dave at mayordave@pelham.ca or read past columns at www.pelhammayordave.blogspot.com.

Visit Niagara At Large at www.niagaraatlarge.com for more news and commentary for and from the greater bi-national Niagara region.

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