Hamilton will hike water rates by five per cent in 2022 — with higher increases on horizon
Hamilton residents face a series of annual water rate hikes at five per cent or higher starting in 2022 as the city grapples with a growing list of critical environmental projects.
But some councillors say it's past time to charge a separate stormwater fee - what critics call a rain tax" - so that owners of large paved properties pay more to protect Hamilton from climate change catastrophe. The next opportunity to debate that contentious topic comes Dec. 6.
At a budget meeting Monday, councillors approved a nearly five per cent water rate hike for 2022 - the equivalent of a water bill of $832 for the average residential homeowner, or an extra $39. That's the highest annual jump in at least a decade. The city is also forecasting an average annual hike of 6.4 per cent from 2023 through 2026, but those potential increases are not yet approved.
The increases are higher than projected" in the past, acknowledged interim water director Nick Winters, but necessary to deal with historical underinvesting" in the stormwater system and the rising cost of new environmental programs and old infrastructure repairs.
Hamilton water bills remain among the lowest among comparable area cities. In 2021, Hamilton's average residential water bill of $785 was lower than those mailed out in Toronto ($827), Kitchener ($1,525), Halton ($925) and Cambridge ($1,171), for example.
Next year's budget hike is due to a request for 10 additional full-time staffers, including those needed to crack down on construction sewer discharges and search for underground leaks that bleed an estimated 10 per cent of treated water out into the ground every year.
The city will also spend more on getting rid of excess soil from construction projects and on treatment plant chemicals - with the cost of chlorine alone expected to spike 30 per cent next year.
Winters said the longer-term rate hikes are needed to finance a growing list of infrastructure repairs, from water plant upgrades to major sewer and water pipe replacements.
Councillors approved the rate hike Monday - but several expressed a desire to debate the long-delayed idea of a dedicated stormwater fee to help tackle Hamilton's backlog of needed repairs.
Several large GTA cities have implemented similar fees, but Hamilton has so far not followed suit despite on-and-off discussions of the idea over a decade. A stormwater fee is charged to property owners based on the amount of hard surfaces - think big roofs and paved parking areas - that directly funnel rain into the sewer.
Coun. John-Paul Danko said the fee would force large commercial and industrial landowners to pay their fair share" of the rising cost of protecting the city from stormwater damage.
We need more revenue to be able to keep pace with ... climate change," added Mayor Fred Eisenberger.
Council's next chance to debate a new fee or tax is a Dec. 6 public works meeting, when staff report on stormwater funding gaps."
Water rates over time
2018: 4.5% hike, or $29.75 extra
2019: 4.66% hike, or $32.20 extra
2020 4.11% hike, or $29.70 extra
2021: 4.28% hike, or $32.20 extra
2022: 4.98% hike (proposed) or $39.05 extra
2023: (forecast) 6.4% extra
Matthew Van Dongen is a transportation and environment reporter at The Spectator. mvandongen@thespec.com