We're learning more today about the utility rate increases that Moose Jaw City Council has given initial approval to.  The decision should come as no real surprise after council was told last year that there is a need for an estimated 75% worth of increases to rates through 2021.

Finance Director Brian Acker says it's a matter of past decisions catching up with us. "It's the identification and the need to rehabilitate our infrastructure. For so many years there was very minimal rehabilitation work done in either of those utilities."

In preparing for the budget this year, Acker says they took a look at 15 other cities in the province to see what their rates were like and Moose Jaw lands at fifth cheapest but that's not necessarily a good thing.

"To some degree, it's because we started doing this rehabilitation work much later on in the process than some of the other cities. They would have built into their rates earlier, they would have increased their rates at a consistent basis over the years where we were stagnant."

As a result of those pressures, council has given initial approval to water rates going up 15% with sewer rates increasing 6%. Adding up all of the increases over the last 16 years, water and sewer rates have increase by over 120% but it's still not enough. The budget documents presented to council show a need for more increases in the years to come.

"There's $135 million dollars worth of work but that the utility generates $10 million in revenue a year and it's a monumental amount of work."

In addition to the utility rate increases, council gave initial approval to a tax increase as well. After budget talks, council landed at a 5.01% mill rate increase for 2018 and that works out to around $64 a year for the average homeowner.

However, that will be subject to the provincial budget following warnings from Premier Scott Moe earlier this month of a tight budget. If cuts are announced, councillors may be forced to re-open the budget and increase taxes even more or slash current levels of funding for programs and services.  

The provincial budget is going to be late this year with Moe saying April 10th has been circled as budget day at the Legislature.