Halifax Water seeking rate hike to deal with growing budget deficit

[Keith P.]

CBC story here: https://www.cbc.ca/news/canada/nova-scot...al-with-growing-budget-deficit-1.7526699

A snippet from the CBC piece:

Halifax Water is asking the Nova Scotia Regulatory and Appeals Board to approve rate increases for the next two fiscal years to make up for what it's calling a "significant budget deficit."

In a release Monday, the utility said it's asking for a 16.2 per cent increase in the average residential bill in the 2025 fiscal year, which began April 1, and an additional 17.6 per cent increase in the 2026 fiscal year.

According to Halifax Water, that means the average yearly residential bill would increase by $148 in 2025-26 and an additional $187 in 2026-27.

The increase is required to address an anticipated $18.7-million deficit for the 2024-25 fiscal year and a projected $34.1-million deficit in 2025-26, the utility said.

This seems a pretty stiff increase for an agency that has largely kept rates stable for years. Given their mismangement in recent times, one hopes that the UARB takes a hard line and doesn't just rubber-stamp this.

[Saul Goode]

Originally Posted by Keith P.

This seems a pretty stiff increase for an agency that has largely kept rates stable for years. Given their mismangement in recent times, one hopes that the UARB takes a hard line and doesn't just rubber-stamp this.

As someone who's had occasion to read many dozens (literally) of their decisions over the years, I'd say confidently that contrary to typically uninformed public opinion, the board doesn't rubber-stamp anything.

[OldDartmouthMark]

My impression of water dept employees is that none of them appear to be even close to being overworked (I’ve had experience in working for the city, and have seen how inefficiently these departments can be run). Perhaps, rather than asking for more money, they need to reorganize, and bring in some private sector management that knows how to run an operation efficiently, i.e. make better use of the resources that they already have, rather than just throwing more money at the current poorly run operation.

[Nouvellecosse]

I wonder how the water rates here compare to those in other jurisdictions. And how they would compare if the increase is granted.

[Keith P.]

Back-of-the-envelope math says that the average quarterly bill would increase these by $37 in the first year and another $47 on top of that in year two. My current quarterly bill is around $160 which I already thought was outrageous. These two bumps will make it approach $250/qtr which is nuts.

[Drybrain]

Originally Posted by Nouvellecosse

I wonder how the water rates here compare to those in other jurisdictions. And how they would compare if the increase is granted.

It seems like water rates are a little all over the place, but Halifax's are on the low side right now, about $1.12 per cubic metre.

Vancouver charges a very low flat rate of $867 per single family home (which apparently is not covering costs, so the city is moving to a metered system.) In West Van, the rate is $1.70 up to 30 cubic metres, and then more after that. Ottawa charges tiers, starting at 94 cents up to six cubic metres, but thereafter going up to 1.86 and climbing. Calgary is $1.60. It looks like Toronto is $4.68 per m3, but that seems way too high? Neighbouring Peel Region is $1.04 up to 50 m3, but then doubles after that.

So it does seem like we're on the low side, and if we've been protected from rate increases over the past few years it's understandable. Still feels like yet another inflationary hit though.

[Keith P.]

The part of the HW bill dealing with supplying water is tiny. The biggest part of the bill is for wastewater.

I was going to cite examples from my own bills. But the HW website steadfastly refuses to show me past bills. It is a very badly designed and customer unfriendly site which has the extra added attraction of not delivering what you ask for. Somehow that is not surprising given the HW track record.

[kzt79]

Originally Posted by Keith P.

Back-of-the-envelope math says that the average quarterly bill would increase these by $37 in the first year and another $47 on top of that in year two. My current quarterly bill is around $160 which I already thought was outrageous. These two bumps will make it approach $250/qtr which is nuts.

$1000/yr for residential water seems foolish.

Glad I'm on a well. Total spend over nearly 2 decades was around $2K to replace the pump which should last at least another 2 decades.

[someone123]

Originally Posted by Drybrain

Vancouver charges a very low flat rate of $867 per single family home (which apparently is not covering costs, so the city is moving to a metered system.)

My building in Vancouver has some kind of third-party utility provider and the actual bill I pay is something like $80 a month for water, which seems like some kind of ripoff. I used to live in Burnaby, also in a multi-unit building, and all utilities worked out to something like $40 a month. IMO, Burnaby is one of the better run municipalities in Canada, but being a suburb they don't have the same legacy infrastructure.

It seems to me the flat rates are subsidizing some large older homes. In general they get mega subsidies in BC, while small urban units likely pay more than their service costs and commercial is taxed at a higher rate.

[Drybrain]

Originally Posted by someone123

My building in Vancouver has some kind of third-party utility provider and the actual bill I pay is something like $80 a month for water, which seems like some kind of ripoff. I used to live in Burnaby, also in a multi-unit building, and all utilities worked out to something like $40 a month. IMO, Burnaby is one of the better run municipalities in Canada, but being a suburb they don't have the same legacy infrastructure.

It seems to me the flat rates are subsidizing some large older homes. In general they get mega subsidies in BC, while small urban units likely pay more than their service costs and commercial is taxed at a higher rate.

$80/month seems like a lot indeed. I pay about $150-$160 quarterly for a four-person household (which, this discussion is making me realize, is probably pretty cheap--I guess unsustainably so, if Halifax Water is to be believed).

It looks like Vancouver is going to up its flat rate 37 percent for sewer. Annual water bills for unmetered SFHs will go from $856 to $1,173. (Page 7.)

A cursory look seems to suggest that water consumption and wastewater fees in Halifax are generally pretty low--for now, anyway.

[Keith P.]

The decision came down today. This is the only online source I've found so far and it is short on specifics. They didn't get everything they wanted:

https://waterfrontmediahfx.the902hxir.ca/101008-2

In other news, more Halifax Water problems: "Financial irregularities" are being investigated: https://www.ctvnews.ca/atlantic/nova-sco...nancial-irregularities-at-halifax-water/

[OldDartmouthMark]

Originally Posted by Keith P.

In other news, more Halifax Water problems: "Financial irregularities" are being investigated: https://www.ctvnews.ca/atlantic/nova-sco...nancial-irregularities-at-halifax-water/

Perhaps we shouldn’t be surprised? Halifax Water reminds me of being the city’s version of NS Power, if such a thing exists, but without the separation (and need for profitability) that privatization would give.

It just gives me the impression that if you peel back the layers, you will reveal a hot mess inside. I suppose we will see.

[Dartguard]

Originally Posted by OldDartmouthMark

Perhaps we shouldn’t be surprised? Halifax Water reminds me of being the city’s version of NS Power, if such a thing exists, but without the separation (and need for profitability) that privatization would give.

It just gives me the impression that if you peel back the layers, you will reveal a hot mess inside. I suppose we will see.

It feels like a good old fashioned Empire building edifice.