Written By David Gomez, Local Journalism Initiative Reporter
STRATHROY-CARADOC — The municipality’s water and wastewater user rates for 2026 was approved by council, following a detailed discussion during its January 19 meeting, advancing the second year of a multi-year rate plan adopted in 2024.
The approved rates reflect a combined increase of 5.4%, which staff said is consistent with the long-range financial plan developed through the municipality’s water and wastewater rate study. According to the report, the adjustment represents an increase of approximately $71.71 per year for the average household.
Presenting the report, Mark Ortiz, Director of Engineering and Public Works, explained that the proposed rates follow the structure established in the five-year plan approved by council last year. “We’re currently in the second year of a five-year plan,” Ortiz told council, adding that the increase balances system needs while maintaining financial stability.
Council’s discussion focused on the relationship between rate increases, reserve contributions, and long-term infrastructure costs. Councillor Greg Willsie raised concerns about the proposed 2% increase on the water portion of the rates, noting that the township’s cost to purchase water is rising more quickly. He cautioned that limiting water rate increases could reduce reserve contributions over time and pointed to higher increases applied to large commercial and industrial users.
Mayor Colin Grantham, attending the meeting virtually, also sought clarification on how the proposed water rate increase aligns with rising supply costs.
In response, Ortiz said the municipality’s water reserves are currently in a strong financial position. “We are proposing a 2% rate increase on the water side,” he said, explaining that reserve balances and annual contributions were reviewed as part of the rate study. He added that staff are comfortable with the current approach and noted that higher wastewater rate increases reflect different cost pressures within that system.
Questions were also raised about third-tier block rates for high-volume users. Councillor Steve Pelkman asked whether those customers are paying rates more closely aligned with the cost of purchasing water. Ortiz confirmed that the municipality is not selling water below cost and said the adjustments allow rates to better reflect actual system expenses, while still supporting annual reserve contributions of approximately $3 million on the water side.
Further discussion addressed upcoming capital needs and reserve sustainability. Councillor Brian Derbyshire questioned whether current contributions would be sufficient given major wastewater projects planned in the coming years. Ortiz responded that the full capital program was considered in the 2024 rate study and noted that recent external funding announcements for wastewater infrastructure would help reduce future borrowing requirements.
Following the discussion, council voted to approve the 2026 water and wastewater rates.
