More funds needed to repair and upgrade an aging system in dire need
Woodstock residents currently paying the lowest water and sewer rates, $550 annually, could see their costs jump to $650 in 2025 and $850 by 2028.
During its Jan. 28 council meeting, which was almost entirely devoted to Woodstock’s at-risk utility system, the council gave the first reading to a bylaw it hopes will increase this year’s utility budget by 15 per cent.
The Woodstock water and sewer system serves only Woodstock’s Ward 4, the former Woodstock town boundaries.
Mayor Trina Jones and CAO Allan Walker explained the rate proposal, which will see the four-tier system introduced in 2023 change to a single tier over the next four years. The change will see Tier 1 customers, currently paying $550 annually, jump substantially over that period to $850, while Tier 4 customers, presently paying $925 annually, will drop to $850 in 2028.
Jones acknowledged that the rate hike would hit some homeowners hard but noted that the increase would be needed to ensure the town’s water and sewer systems were up to standard. She added that even after the town reaches the $850 annual target in 2028, Woodstock residents will still be paying approximately $2.30 per day, which is well below the provincial average.
“We understand these are big leaps for our community members who have been treated for a long, long time, decades, with extraordinarily cheap water, the reality of that is we can’t keep pace with that or we won’t have water,” Jones said.
The evening’s discussion of utilities began with Utilities Director John Lyons offering a detailed review of the town’s water and sewer system, which he said is in severe jeopardy without significant upgrades.
Offering an overview of the entire system, Lyons outlined several critical infrastructure upgrades required in the short term and an overall upgrade of the aging water and sewer system over the next several years.
He said failure to address the problems puts the town’s water and sewer system at risk.
Lyons explained that the town currently relies on one well—Well # 2—to provide its water. He explained that Well # 1, located in the same well house, is no longer operational. He said that the town is in the process of drilling Well #3, located near the operating well house, adding that the effort will continue when warmer temperatures make it possible. Well # 3 will draw from the same source of water.
The town’s effort to find a second well source abruptly stopped in 2023 when testing showed water from a new well in Grafton unusable.
The town and other levels of government spent approximately $4 million to build the Grafton well.
Mayor Jones explained that the council approved legal action against the consulting firm overseeing the project to recoup the money invested in the Grafton well.
“We have hired legal counsel to represent us in our claim against Dillon with respect to their work on the project,” she announced. “A Notice of Action was filed with the court on December 30, 2024. A corresponding Statement of Claim will be filed no later than January 29, 2025. At this point in time, there is nothing else to report.”
The proposed rate hikes follow several months of reviews, changes, and overhauls of the town’s utility department and system.
In 2023, the council approved changing the billing system from a metered system to flat rates despite significant public backlash. To ease the changeover, the town implemented a tier system based on the homeowners’ historical water usage.
The rate proposal unveiled at the Jan. 28 meeting will remove the tiers by 2028.
During his presentation, Walker outlined why the town chose the flat rate system over a metered system, highlighting the high cost of meters as the primary reason.
Jones said a metered system could return in the future, but the utility’s current capital demands rule that out for the foreseeable future.
“It would take years to get back to a metered system,” she said.
Several council members agreed with the rate proposal and unanimously approved the first reading of the bylaw change. The council will then publicly debate the issue and potentially suggest amendments before giving the policy its third and final reading.
Coun. Jeff Bradbury said he recognized the strain the increased rates would put on families already facing higher living costs.
“They’re tough,” he said. “Everything is up. Everyone is strained right now. Power rates and assessments are up, things like that.”
However, he added, Woodstock’s water and sewer system requires immediate upgrades to avert potential disasters. He cited the disastrous water break in Calgary as an example of what could happen if the system is neglected.
Bradbury and Coun. Norm Brown thanked Lyons and his team for their ongoing efforts to improve and secure the system.
Brown also supported the decision to use the flat rate over a metered system, citing the estimated cost of meters.
“The $600,000 for meters is better spent on repairs,” he said.
Coun. Mike Martin cited the number of malfunctioning sewer lines and lift stations as a serious problem. These lines and lift stations leave the town non-compliant with environmental standards.
“These are things that need to be fixed,” he said.
Coun. Julie Calhoun-Williams pointed out that most New Brunswick municipalities use a flat-rate system instead of a metered one.
The proposed rates, which the town posted on its website, will see Tier 1 jump from its current $550 annually to $650 in 2025, $725 in 2026, $800 in 2027, and $850 in 2028.
Tier 2 will increase from the current $725 to $775 in 2025, $800 in 2026, $825 in 2027, and $850 in 2028.
Tier 3 will remain at the current $825 in 2025 and increase to $850 in 2026, 27, and 28.
Tier 4 remains at its current $925 until 2027, before falling to $850 in 2028.
Utility rates for apartment units will increase by $50 annually from their current $350 to $550 in 2028.