Saint John Water users will soon be paying more after years of rate freezes.
Council approved the utility’s first long-term financial plan on Monday night.
The plan proposes rate increases of one per cent in 2026 and 2027 and annual increases of two per cent after that.
Potable water rates have been held at $1,428 annually for residential customers since 2019. Metered customers with both water and sewerage service have also not seen an increase since then.
Coun. Gary Sullivan said the plan is meant to help address Saint John Water’s high debt load and significant infrastructure deficit.
“It will ensure that Saint John Water operates as a sustainable utility, meaning it will meet present and future economic and social needs of today’s ratepayers without compromising the ability of future generations to meet their own needs,” said Sullivan, who chairs the city’s finance committee.
The utility has an infrastructure deficit of $370 million and around $4 billion in assets, according to the plan.
While the majority of assets are in very good to fair condition, around 11 per cent are considered poor or very poor.
In addition to its infrastructure deficit, Saint John Water had about $69 million in long-term debt as of the end of 2023, down from a peak of over $107 million six years earlier.
“However, the debt balance is a significant burden for a utility with approximately 19,100 customers,” said the plan, which also noted that the number of ratepayers is low given the physical size of the system.
The utility’s 10-year financial plan also calls for the implementation of universal metering starting in 2028.
It would allow for better distribution of costs between ratepayers, as charges will be based on water consumption rather than a flat rate, said the plan.
Saint John Water would look at creating a minimum amount of water usage every month that is priced at a certain level that would be more affordable to a larger group of challenged households.
Usage greater than that minimum would be priced at a higher rate and tied to the utility’s costs of providing water service.
A study to determine rates for the universal metering program will begin in 2026, according to the plan.
