Toronto homeowners will pay an average of 5 per cent more for water and 2 per cent more for garbage pick-up in 2017.

City council gave final approval Wednesday to the “rate-supported” budget.

The much bigger — and thornier — operating and capital budgets will not be passed until February.

Councillors voted to increase the combined water and wastewater consumption charges by 5 per cent, bumping the average residential bill from $914 this year to $960 next year.

That follows years of 9-per-cent and 8-per-cent hikes to fund upgrades in the aging water treatment system and to improve the storm sewer system after significant basement flooding became a problem in the city.

Under the plan, council is expected next year to pass another 5-per-cent hike for 2018.

Councillor Mike Layton once again lost his bid to end a price break for large industrial users who do not pay the full cost of wastewater treatment.

Layton, who has a master’s degree in environmental studies, has annually tried to convince his colleagues to end the break that costs the city $1.6 million a year.

Councillor Norm Kelly argued against the motion, saying Toronto is in an international competition to host businesses and ending the subsidy would make the city less attractive to corporations.

Layton’s motion lost in a 16-19 vote.

Toronto homeowners will pay, on average, an extra 2 per cent for waste collection, below next year’s expected rate of inflation.

Owners will annually pay an extra $4.90 for small bins that last year cost $244.77; an extra $5.94 for medium bins that previously cost $297.14; an extra $8.07 for large bins that previously cost $403.55, and an extra $9.37 on top of last year’s $468.08 charge.

City staff had recommended a bigger garbage fee hike of 5.2 per cent.

The smaller hikes will add $4.8 million to the city’s overall budget pressures, but Crawford described the reduced rates as “much more reasonable, much more affordable.”

Toronto homeowners will also pay a new $8 annual surcharge for removal of metal and oversized garbage items, whether they use the service or not.

As well as budget items, council, on Wednesday night heard, a controversial proposal to let private vehicles with disabled parking permits stop in bike lanes, including protected lanes, to pick up or drop off passengers.

Loading... Loading... Loading... Loading... Loading... Loading...

After protests by cyclists that allowing private vehicles in protected lanes could be dangerous and inflame cyclist-motorist tensions, Councillor Pam McConnell convinced her colleagues to refer the recommendation back to city staff for consultation with users who would be affected, including disabled Torontonians and cyclists.

Staff were asked to report back to council in the fall of 2017.

Clarification – December 19, 2016: This article was edited from a previous version that said councillor Mike Layton lost his bid to end a 30-per-cent price break for large industrial users of water who adhere to certain criteria. In fact, Layton's failed motion was actually to end a price break for large industrial users who do not pay the full cost of wastewater treatment.