North Bay city council to reduce water rate hike to 2.97%

North Bay city council is working to reduce the planned increase in water and wastewater rates for 2023.

After a long council deliberation Monday night, they aim to wrestle a 5.53 per cent hike down to 2.97 by using $825,000 in reserve funds.

"This is a short-term fix and to recognize there are hard times out there," said Mayor Peter Chirico.

"Reserves are put away for those rainy days … Right now we're in those rainy days when we take a look at the last couple of years with economic impact. COVID and then followed by runaway inflation."

Coun. Tanya Vrebosch is one of two councillors who voted against that idea. Vrebosch said using the reserve fund now would mean a bigger hike for taxpayers in the future.

"I don't play the percentage and perception game,” she said.

“A lot of (councillors), you could hear them saying ‘it has to be under three per cent, it has to be under three.’ I said what's the consequence and value to what they're saving and what are the unintended consequences of future years?”

While Vrebosch said she understands the concerns taxpayers have while feeling the pinch of current inflation, she fears in the long term the city could handcuff itself in future budget deliberations.

"Just over $2 savings per month for only this year will cost us over a million dollars,” she said.

“Next year when we don't have that $825,000 to put in the budget, you then have to wean yourself off."

Chirico is hopeful an upcoming operational review of city hall will find extra savings.

"We do expect to find some operational efficiencies through that which will help wean us off the reserves,” said the mayor.

“You can't stay on reserves forever."

A special committee will meet further Tuesday night on the water rates issue before it goes to a council meeting for a final vote and approval.