City council approved a five per cent increase to water and sewer utility fees on Monday.
For a single family home without a water meter, the increase will cost an additional $28.18 in 2012. The move comes as part of a five-year plan to address the city's growing infrastructure deficit.
Under the proposed plan, water and sewer rates will increase five per year each year until 2017. Analysis done by the city earlier this year showed an average of $7.36 million needs to be invested in the city's
water and sewer infrastructure each year.
"We are putting ourselves in difficult circumstances in terms of sustainability," city corporate services director Kathleen Soltis said. "We have an infrastructure deficit with quiet a number of things we manage. It gets crucial that we put aside funds for asset [management]."
Coun. Murry Krause, who was chairperson of the city's finance and audit committee which made the recommendation, said the proposed five per cent increases still do not meet the city's infrastructure needs.
Annual five per cent increases would allow the city to spend $2.9 million on water and sewer upgrades in 2012 and $6.2 million per year by 2016.
"It does not achieve full sustainability," Krause said.
Recommendations which would have seen the city achieve sustainable water and sewer infrastructure funding by 2016 were rejected by the previous city council during a committee of the whole meeting.
In 2010 and 2011 combined, the city spent just over $1.35 million on water and sewer projects. From 2006 to 2009, nothing was spent on improving the city's water and sewer infrastructure. In 2009 and 2010, the city had to do 447 emergency repairs on water mains, sewers and storm drains which failed, according to superintendent of operations Bill Gaal.
"In the 1980s and mid-1990s we conducted an experiment using plastic [sewer] pipes. That has proven to be an expensive test," Gaal said. "When we're installing utilities we expect them to last 50 years - these are only lasting 25. The plastic is just giving - we have no explanation."
When plastic pipes give, Gaal said, it is harder to detect them - so it takes longer to respond to the break. "We end up having to haul a lot more material," Gaal said.
Five per cent annual increases would see Prince George's household water rate reach $395.60 per year, and household sewer rates increase to $323.76 per year, by 2016 - less than residents of cities like West Vancouver, Surrey and Burnaby pay now.
New councillors Lyn Hall, Frank Everitt and Albert Koehler voted against the increase - which was supported by Mayor Shari Green and the rest of council.