Water rates are set to go up next year in Hanover.
Council approved the recommendations in a November 2nd staff report on 2027 user fees and charges, “The most significant change proposed for 2027 is a 5.7 per cent increase to water and wastewater rates.”
Director of Corporate Services, Treasurer Jelena Savic told council,”This increase is consistent with the funding strategy identified in the Town’s Asset Management Plan and supports the long-term financial sustainability of the water and wastewater systems. The increase helps address future lifecycle replacement requirements and reduces long-term infrastructure funding pressures.”
Savic explained, “For water and sewer combined, an estimate — and this estimate is based on average consumption over the last three years– It really depends on the property, but on average I would say about $70 dollars for the year would be the increase that we’re looking at for water/wastewater combined for both the flat fee and the metered fee.”
She noted, “When it comes to setting the rates, that 5.7 per cent is based on the asset management plan that takes into account the assumption of a two per cent annual increase in operating costs, and then it takes into account various assumptions around our capital needs. One of the major ones is that the wastewater treatment plant upgrade is about $78 million incurred in a specific period.”
Savic says that number would become more specific once the Town has gotten updated estimates including when that project would be phased and how much each of the phases would likely cost.
“It’s supposed to get us closer to that 100 per cent recovery. It very likely does not,” said Savic, adding, “We’re getting closer to closing that gap. We haven’t closed that gap with 5.7 per cent.”
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