Lisa Moncrief
Kenora City Council has decided to defer any increase in water delivery rates until their next open meeting in January.
Director of Engineering and Infrastructure Greg Breen says right now the city is subsidizing the service.
“We saw that in 2022, the city the spent $112,000 delivering the service, and through charging customers the rates that were in effect, generated revenue of $45,000,” Breen told council at their open meeting Wednesday night.
“The service is currently in a deficit position to the tune of $80,000 annually. The goal of any change in the proposed rates is solely to get to cost recovery.”
Breen says in order to cover the cost of the water delivery service, they would have to triple the rates.
Joshua Ariano made a deputation to council asking the city to reconsider the new water delivery rates.
“Like many others, I’m struggling to pay my bills with this unprecedented inflation. Now we’re faced with a staggering 300% increase in our water bills, with an increase from $60 to $180 for 1,000 gallons, an increase that will negatively affect my family and others in the community.”
There are four options council is looking at: keeping the rate increase approved earlier this fall, a 3 year phase-in period, or a 5 year phase-in, or another option that Ariano is suggesting.
“If the city took the 3.1% yearly increase that the regular water and sewer customers get, you multiply that by the stated year since the last increase, (2015 until now), based of the $60 rate that we’re presently paying.”
Mayor Andrew Poirier says he likes that idea and suggests the consultants who did reports on the city’s sewer and water system in the past didn’t suggest any rate increases for things like water delivery, which was a definite oversight.