I wanted to spend a little time looking at water and sewer costs in Sault Ste. Marie and how we compare to other municipalities across Ontario and the north. As I’ve written about before, after property taxes, water and sewer costs are the next biggest expense placed on citizens by municipalities and they form part of the municipal burden.
In 2015, City Council reduced the sewer surcharge. As a result, for residential users the sewer surcharge is, as a percentage of your bill, the lowest it has been in more than 30 years. In order to give residential citizens a further break, the PUC Board (of which I was and am a member) also made the decision to forego increasing water rates in 2016. These actions had the net effect of saving households about $150 a year on average.
The annual BMA municipal study collects and compares data on Ontario municipalities across a number of measures—including water and sewer costs. The 2016 study is now out, and there are some really interesting findings as to how Sault Ste. Marie has been able to improve its water and sewer affordability and cost-competitiveness.
In 2015 Sault Ste. Marie ranked 39th out of 94 surveyed municipalities. In 2016, thanks to the decisions made by City Council and the PUC Board, our rank improved to 6th out of 101. The table below captures some of the relevant changes:
Changes in Residential Water and Sewer Costs / Competitiveness between 2015 and 2016
|Year||SSM Cost||Prov. Avg||SSM Rank||$ Difference||% Difference|
Across Ontario, the average increase in water and sewer charges was just a little under 6% between 2015 and 2016. In Sault Ste. Marie, ours costs went down by over 18%, the sharpest drop of any municipality in the survey. We are now almost $300 lower than the provincial average.
By virtue of our actions in 2015, Sault Ste. Marie is now also leading the way amongst the Northern Ontario towns and cities that participate in the study and we are about 33% lower than the Northern Ontario average which is, in real dollars, close to $350.00 below the Northern Ontario average.
What becomes striking when you start to delve into the study results is just how uncommon it is for municipalities to be able to reduce their costs year-to-year. Of the 94 municipalities that reported information in 2015, Sault Ste. Marie was one of only three to reduce its water and sewer costs by a more than nominal amount in 2016 (North Bay and St. Catharines were the other two). Even high-growth cities like Toronto and Markham had to put their rates up.
I think that just goes to show that it’s a challenge controlling costs at a municipal government under the best of circumstances. In Sault Ste. Marie, we’ve faced additional challenges over the past several years with a difficult local economy and the non-payment of taxes by a major industrial employer that has negatively affected the City’s cash flow. Despite this, I’m pleased that Council and the PUC have found a way to deliver meaningful savings to citizens also to substantial improve our City’s affordability and cost-competitiveness.