Hamilton water rates will increase 4.85 per cent this year.

But some city councillors argued Hamiltonians can't afford a water rate increase as skyrocketing electricity rates and other pressures mean residents are already barely hanging on to their homes.

You know what residents can't afford? They can't afford a Flint, Mich. They can't afford a Walkerton. - Coun. Sam Merulla

The increase will mean the average home pays $30.60 more per year. That's roughly the same increase as previous years.

But this year is exceptional, said Tom Jackson, a Ward 6 councillor. He was one of three who voted against the city's rate budget Wednesday.

He's hearing a "trickle" of people saying they can't make ends meet anymore, he said.

One reason is electricity bills, which are a contentious issue for the Ontario Liberal government. In 2015, recent reports show, Hydro One cut off 60,000 homes in its catchment area as a result of skyrocketing energy costs.

Jackson fears the same fate for his residents.

"There are a number of constituents saying, 'Tom, we're reaching a point where we're just tapped out here,'" he said.

They're reaching a threshold where I'm concerned on their behalf as well. - Coun. Tom Jackson

"They're reaching a threshold where I'm concerned on their behalf as well."

Jackson wanted the city to hold off and do a broader review of its programs. City council already warns it will have to cut staff and services to keep 2017 property taxes in line.

However, most other councillors argued that city can't afford not to increase water rates. If it doesn't maintain its infrastructure, said Sam Merulla, it risks another Flint, Mich.

"You know what residents can't afford?" the Ward 4 councillor said Wednesday. "They can't afford a Flint, Mich. They can't afford a Walkerton … There's nothing more important than safe water.

There's nothing more important than safe water. - Sam Merulla

"People do not mind paying more for such an essential service."

Chad Collins, a Ward 5 councillor, agreed that water is a "core service people want." And Mayor Fred Eisenberger said Hamilton's water rates are among the lowest of comparator municipalities — lower, for example, than St. Catharines, Brantford, Haldimand and Norfolk.

Coun. Terry Whitehead of Ward 8 on the Mountain and Coun. Judi Partridge of Ward 15 in Flamborough sided with Jackson.

The rate budget is one of three budgets the city approves each year. This water, wastewater and storm rate budget means the average resident's bill in 2017 will be $660.95 for a household consuming 200 cubic metres of water.

The budget also includes six more employees, and $915,000 more for electricity costs given recent rate increases.