A big jump in Burnaby’s sewer utility rate divided city council this week.
Mayor and council approved a 20% increase by a slim 5-4 vote at a meeting Monday.
Because of ongoing capital projects, including the $3.86-billion North Shore Wastewater Treatment Plant, Metro Vancouver has increased its sewerage charges by 49.84% for 2025, according to a report presented at the meeting.
Staff recommended approving a 20% increase in Burnaby, which will mean an extra $123.50 for single family homes and $66.50 for condos.
The city's annual sewer tax increase has not exceeded 5% since at least 2020.
Richard Rowley, director finance – revenue services, acknowledged the rate hike would be the biggest in his time with the city but said it was actually a "good news story" because the city has reserves to buffer residents.
Nearly 30% of the Metro increase would be covered by those reserves next year under the proposed plan, he said.
Rowley said municipalities without such reserves will have to pass on the whole 49.84% Metro hike.
Not raising the rate 20% next year would also result in double-digit increases for the next five years, even as Metro's increases are projected to drop back down to 4.8% in 2026, according to Rowley
"It would be quite difficult to explain to our customers why we're coming out with higher rates than Metro," he said.
And if the Metro rates fluctuate over the next five years, Rowley said the city won't have the "bandwidth" to respond if it doesn't increase the rate by 20% in 2025.
But Coun. Sav Dhaliwal opposed the cost hike, saying affordability for 2025 was his priority.
He said the city has done a good job building up reserves and they should be used to "look after the peaks and valleys" for residents.
"We do have a responsibility to our citizens to make sure that the taxes that we increase are palatable and doable and manageable," he said.
He proposed capping the increases at 9.9% for five years, but his motion was defeated.
Mayor Mike Hurley opposed the motion, saying wastewater treatment plants are expensive and they have to be built.
"You can spread it out all you want, but at the end of the day it will catch up," he said.
The 20% increase was approved, with councillors Dhaliwal, Richard Lee, James Wang and Pietro Calendino voting against it.
The approved plan also included a 0.0% increase for water services, even though Metro is raising its rate by 7.2%.
That increase will be covered by reserves as well, according to the report.
Water and sewer service utility notices will got out to residents in February.
Residents are encouraged to pay their utility bills by March 17 to benefit from the discounted amount.
Follow Cornelia Naylor on X/Twitter @CorNaylor
Email [email protected]
