Inflation driving water and sewer rates up-up-up-up in London’s 2024-2027 multi-year budget

Concrete pipes awaiting installation beneath King Street (Daryl Newcombe/CTV News London)

Residential water and sewer bills must increase each of the next four years to keep pace with rising cost pressures.

A staff report going to council’s Strategic Priorities and Policy Committee (SPPC) recommends water rates rise 2.5 per cent next year — and anticipate similar increases each of the following three years.

The increases is consistent with long-term projections in the Water Financial Plan prepared by city hall in 2020.

Meanwhile, the wastewater and storm water rate is recommended to rise four per cent in 2024, and potentially four per cent increases annually until 2027.

“This is due to higher than anticipated inflation in recent years and projected reserve fund balances,” explained the report.

The reserve funds support the renewal and enhancement of water, wastewater, and storm water infrastructure.

Total water use in London including future projections. (Source: City of London)Based on an average residential consumption of 200 cubic metres, the rate increases would add a total of $41 to the average annual bill.

Total residential water consumption appears to be rebounding after a decade of steady decline in London.

The report suggests London’s recent population boom is outpacing conservation, “Although water conservation efforts across the city continue to reduce per capita water consumption, the growth in the number of customers appears to have overtaken the impacts of reduced consumption resulting in a net increase in consumption.”

The 2024 water and wastewater rates are approved before municipal budget deliberations in February to ensure the rate increase corresponds with the budget’s fiscal year.

In addition the report stated, “Rate increases for the remainder of the multi-year period (2025 through 2027) will be brought forward in 2024 and will reflect any rate impacts of the decisions made during the budget process.”

A public participation meeting about the proposed increases will be held Nov. 21 at city hall.