City should hike 2012 water rates by 9%: budget committee

The budget committee is recommending that the city hike 2012 water rates by nine per cent after reviewing the budgets for Toronto Water and Solid Waste Management Services on Thursday.

That would mean an increase of about  $62 for the average Toronto household using 300 cubic metres of water, and would bring the projected bill to about $747 a year. The rate hike is part of a series of annual rate increases over nine years that was approved by the previous council and began in 2006.

The city said the water rates continue to remain lower than those of most neighbouring municipalities.

The committee said it has reviewed the 2012 budget for Toronto Water and endorsed:

• an operating budget of $381 million.
• a capital budget of $607 million.
• a projected revenue of $893 million.

It has also reviewed the 2012 budget for Solid Waste Management Services and endorsed:

• an operating budget of $349 million.
• a capital budget of $103 million (includes a carry forward of $43.6 million).

The budget committee said Thursday that it will not recommend a garbage fee increase “for the majority of  its residential customers.”

It will recommend eliminating the collection of overflow recycling from blue bins, which would save the city $500,000 and eliminate three full-time positions, as well as reducing the number of environment days to 11 from 44, which would save $120,000.

Residents could upgrade to a bigger recycling bin at no extra cost, and they could under certain conditions qualify for more than one bin.

Mayor Rob Ford campaigned on a promise to save taxpayers money and to trim the fat at city hall.

Ford also promised to privatize garbage collection, a decision that was approved last month. Green For Life Environmental Corp. won the contract for the area stretching from Yonge Street to Humber River beginning next summer.

Officials say the proposed seven-year, $186 million agreement would save taxpayers more than $78 million dollars.

The committee’s recommendations will be considered by the executive committee on Nov. 21 and then by city council on Nov. 28-29.

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