Just like property taxes, London water rates rising in big way

It’ll cost more to drink up, and flush it down.

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Water rates are set to soar in London, with tap water surging about nine per cent over three years while wastewater increases will spike about 15 per cent in the next three years, a city staff report says.

The city’s water systems have been hit with inflation just like homeowners and the city also has to renew aging water infrastructure, London’s deputy mayor said.

“That is what is needed now for infrastructure work. We need to do it,” said Shawn Lewis, who chairs city hall’s strategic priorities and policy committee.

“Development fees cover new projects, but not old infrastructure and it wears out. The city is also not immune to inflationary pressure. If it breaks, repair costs are catastrophic.”

In addition, the city is seeing more extreme weather and the city’s storm water and sewer systems need to be upgraded. In July the city received 250 millimeters of rain, more than four times the average of 55 millimeters.

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“We are seeing the weather get more extreme, weather patterns are changing, Lewis said.

In addition to water rate hikes, city council approved a four-year budget that calls for tax hikes of 8.7 per cent in 2024, 8.8 per cent in 2025, 5.8 per cent in 2026 and 6.8 per cent in 2027.

“We are sensitive to the tax pressures, but this is approved in the budget,” Lewis said.

The report to the city’s strategic priorities and policy committee, which meets Oct. 8, says rates will rise 5.4 per cent for waste and storm water systems in 2025. The tap water rates will increase 1.5 per cent.

The increase has been approved by city council as part of the multi-year budget.

But the report also shows the increases to 2027.

• Water rates in 2024 rose 2.5 per cent and in 2025 will increase 1.5 per cent, rising another 2.6 per cent in 2026 and 4.8 per cent in 2027.
• Wastewater rates in 2024 went up four per cent, in 2025 will increase 5.4 per cent and in 2026, 4.6 per cent and then 5.2 per cent in 2027.
• The average residential consumption is $1,257 for a home in 2024 and that will be $1,303 in 2025.

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The report also says water consumption in London has increased in recent years, contrary to a provincial trend which has seen municipal water use decline.

“The trend across Ontario has been an overall decrease in residential water consumption. This was attributed to new construction with more efficient water fixtures, retrofitting of inefficient fixtures, and conservation efforts,” the report says.

“However, water consumption for London has been on an upward trend since 2015 due to growth in all sectors. This trend is expected to remain consistent over the multi-year budget period.”

While individual home use is down, the growth in population in London has driven more consumption.

“Water conservation efforts across the city continue to reduce per-capita water consumption, the growth in the number of customers appears to have overtaken the impacts of reduced consumption resulting in a net increase in consumption.”

The city purchases water from the Lake Huron and Elgin area primary water supply systems. That purchase makes up about 30 per cent of the overall total water budget.

The value of the city’s water, wastewater, and stormwater systems is $20.7 billion.

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