What is causing the rate increase?

The single biggest driver of the city’s rate increase is the Region of Waterloo’s 10-year water wholesale rate forecast, said Chapman. It will cost more money for Waterloo to pay the region for drinking water and wastewater treatment, so it will cost more money for residents too.

There are also regulations from upper levels of government the city must meet. Case in point — updating the city’s stormwater ponds to meet provincial standards.

Then there’s the problem of residents consuming less water, decreasing the city’s revenue.

“This is a trend that has been going on for some time and lends itself as a great pressure on a year-to-year basis,” said Chapman. “Even the region has identified the (consumption of less water as a) trend that will continue for years to come, ultimately putting pressure on water service rates because a lot of our costs are from maintaining and replacing infrastructure.”

Where does the money go?

If the rate increase is approved, the water services division would have a 2017 budget of $53.1 million to manage about $700 million in infrastructure including watermains, sanitary and storm sewers, stormwater management ponds and sanitary pumping stations.

A breakdown of 2017 water services expenditures:

• Sewage treatment, 33 per cent

• Capital projects, 21 per cent, includes pipe replacement, flooding and drainage improvement projects and rehabilitation of creeks and lakes

• Wholesale water purchases, 24 per cent

• Reserve contribution, -0.4 per cent

• Operating costs, 23 per cent

How does Waterloo compare to other municipalities?

In 2016, Waterloo households, on average, paid the least amount for water out of Guelph, Woolwich, North Dumfries, Wilmot, Wellesley, Kitchener and Cambridge.

Waterloo residents also felt the smallest impact, spending only 0.74 per cent of annual household income on water bills.

Cambridge residents, by contrast, spent 1.15 per cent of their annual household income, followed by Kitchener residents at 1.07 per cent.