Rates for those on Penetanguishene’s water and wastewater system will increase by a blended 8.6 per cent as of Jan. 1 of this year once ratified by council, but the amount was found to be lower than averages locally and provincially.
Penetanguishene ratepayers paid 10 per cent lower for water and wastewater costs compared to peer municipalities in 2024, and 6 per cent lower than the average across 120 Ontario municipalities, according to consultants.
At the recent committee of the whole meeting, a presentation by president Jim Bruzzese of BMA Management Consulting Inc. provided council members with a look at the water and wastewater long range financial plan for the town, as per regulations under the Safe Water Drinking Act.
“The town has taken a proactive and integrated approach (to renew drinking water licences); they’ve prepared a 10-year financial plan although only six years is required,” said Bruzzese. “Also included is a wastewater financial plan which is not a requirement under the Act, however, it has been conducted.”
The report noted that for every 180 cubic metres per year of total volume, the Penetanguishene residential impact in 2024 was $1,234; peer municipalities surveyed averaged $1,369 in that time frame, and 120 municipalities across Ontario averaged $1,311 in 2024.
To increase from $1,234 to the average residential customer rate in 2025 of $1,340 would mean an annual increase of $106.00 or 8.6 per cent; a blended rate calculated from 7.5 per cent for water rates and 9.2 per cent for wastewater rates.
The purpose of the report was to plan for long-term contributions as per the town’s asset management plan toward the capital program and reserve balance. A suggested increase in line with a rough 8.6 per cent was projected toward 2029 within the report, followed by a lowered estimate of a 5.6 per cent increase from 2030 to 2034.
Not all were happy with the suggested rate increase. Coun. Bill Waters shared an anecdote of a resident saying they were leaving the town due to high taxes; Mayor Doug Rawson acknowledged Waters’ comments but noted that the town needed to be mindful of what it provided.
“One of the things we provide is safe drinking water; and I don’t want to jeopardize our system, our assets, what we do – to save $106 per resident per year,” said Rawson. “I would be comfortable with $106, I’d be comfortable with $126.”
Coun. Bonita Desroches stated that governments wanting to please taxpayers over years “don’t do any favours by procrastinating and putting off tough decisions” through low taxes and tax cuts. She added that a “what if” scenario would benefit from having saved up in advance.
Coun. George Vadeboncoeur noted that since municipal staff regularly reviewed rates for increases every few years, that an amendment could be that such review would occur in 2027 before approval of 2028 increases.
Deputy Mayor Dan La Rose pointed out that the 8.6 per cent increase was still below the peer average of 10 per cent and agreed with Vadeboncoeur that a shorter review time frame could be beneficial, noting that funding applications for municipal infrastructure could also play a role if successful.
Decisions of the committee of the whole are anticipated to appear for discussion and potential ratification at an upcoming regular meeting of council.
The 2025 water and wastewater rate study report, including long range financial plan, can be located on the agenda page of the Town of Penetanguishene website.
Meetings of Penetanguishene council are held on the second Wednesday of each month, and can be watched live on Rogers TV cable 53 when available, or on the Rogers TV website.
Archives of council meetings are located on the Town of Penetanguishene YouTube channel.