KIRKLAND LAKE - Kirkland Lake has divulged the 2024 water and wastewater rate increase, though council members are warning they could go higher.
This year the water rates are going up 1.7 per cent, with a 3.5 per cent increase in wastewater rates. Kirkland Lake council approved the increase at its Jan. 24 meeting. A bylaw to officially establish the rates will be at the Feb. 6 meeting.
The hike means a starting flat rate for a private house or apartment per quarter is $54.92 and $45.51 for sewer. In 2023, the starting flat rates were $54 per quarter for water and $43.97 for sewer.
Mayor Stacy Wight said residents should expect those numbers to increase due to the town’s water distribution challenges and plans to grow the population.
“It's important to note at the time of that asset management plan, there were no contemplated changes in our service levels, nor any requirements for anticipated growth,” she said.
“So, I think that's important for council and the members of the public to understand that these were based on the information we had at the time, and situations may change and develop as the community moves forward.”
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Based on the rates approved this week, the town is expected to bring in an additional $43,970 for water and $65,846 for wastewater this year.
The money will be used to address the capital-funding gap going forward in either the 2024 capital budget or as reserves for future projects, according to a staff report.
In July 2022, the town approved an updated asset management plan (AMP) to help address the infrastructure capital-funding gap.
The AMP report recommended increasing water and wastewater rates annually to help remove the capital-funding gap.
The plan recommends an average annual water rate increase of 1.7 per cent for 15 years and an average annual sanitary sewer rate increase of 3.5 per cent for 20 years.
As an elected official and as a ratepayer, Coun. Rick Owen said he’s never happy to see costs increase.
“The alternative is not to raise the rates, and then all of a sudden, you're going to be hit with a 30 or 40 per cent increase because that's what's needed to fix the system,” he said.
“And again, I think it needs to be emphasized that there may be additional increases when the budget comes. We've seen the study, we know that our water and sewer systems are in not the best shape, and we can't ignore it any longer. So, I just want to warn people that these are not the final figures and it's possible that these could go higher.”
