In December, Orangeville Council was mulling over ways to keep the 2008 property tax increase to less than five per cent. At the same time, a 12 per cent hike in water and sewer rates was quietly voted in.

The town points out, however, that this is a variable cost dependent on the amount of water used per household. Once combined with the fixed supply charge of $10.82 per house per month, the average increase to Orangeville property owners is predicted at 9.7 per cent.

The town's water and sewer rates increased from $1.99 per cubic metre of water in 2007 to $2.22 this year; a hike of 12 per cent. Meanwhile, the monthly supply charge per household has increased from $10.62 to $10.82 - about two per cent.

Combine the two, mix in the average annual per-home water consumption of 270 cubic metres, and the average home will pay $729.24 for water and sewer service this year, up from $664.74 last year, a jump of 9.7 per cent.

The math impresses town resident Brent Blackburn not one bit. "I used 300 cubic metres last year at $1.99, and I'll use 300 this year at $2.22. It's 12 per cent, plain and simple. Never mind this averaging," said the former mayoral candidate.

"The bottom line is (council) sneaked this increase through," continues Mr. Blackburn. "We should be furious in this town."

Double-digit price increases, such as the water and sewer rate increase, can be construed as excessive. This is particularly so when both the rates of inflation and per capita wage increases are around two per cent.

In real dollars, though, the average Orangeville homeowner is paying between $5 and $6 a month more for water service, a figure ratepayers might find a little easier to swallow.

Mr. Blackburn contends that the increases, when combined with the 4.89 per cent property tax increase, mean Orangeville ratepayers are forking over an extra $25, or more, to the municipality each month.

(Actually, the increase in county and town property tax rates totals $115 per year on an "average" $242,000 property. Thus, the increase in taxes plus water rates is in the neighbourhood of $16 per month.)

"Wages and pension benefits are not going up. Keep this up every year and people won't be able to afford (the increases)."

Doug Jones, Orangeville's Managing Director of Environmental Development Services, says the rate increases in Orangeville are typical of those in municipalities across the province.

"The municipalities are jacking up water rates at about 10 per cent a year," says Mr. Jones. "The money is needed to maintain water systems adequately."

The town is also required, through the Ontario Sustainable Water and Sewage Systems Act (Bill 175), to charge the full cost of providing water and wastewater services to customers through user fees.

Passed in the provincial legislature in 2002, largely in response to the Walkerton tragedy, the Act called for municipalities to analyze the immediate capital needs for infrastructure replacements, and growth-related needs, and how to finance them.

In Orangeville's case, the just-completed watersupply improvements cost $14 million, with water rates responsible for only the portion left after federal and provincial grants and contributions from lot levies.

The municipalities must also look at long-term needs, (up to 80 years), and determine how much money will be needed to replace equipment over the long term.

Finally, the Act requires the cost of water and sewer systems to be assessed, including operating, inflation, growth, capital and debt-carrying charges.

And the bottom line is that the municipalities will have to both physically and financially sustain these systems on their own.

Mr. Blackburn's argument could be further exacerbated by council's decision to cut back on the sewer rates which it will be charging a local company over the next two years.

The reasoning behind reducing the charges is that the company, asphalt recycler Roto-Mill, trucks a large portion of the water it uses off site and its use of the town sewage facilities is not in proportion with its volume of water use.

The company is also moving its entire 150- employee operation to Orangeville, which is in dire need of new business locating here.

Councillor Scott Wilson, the only councillor to vote against giving Roto- Mill the reprieve, asked why such relief was not being given to homeowners who water their lawns. He reasoned that the water used on lawns is going into the ground and not into the sewers.

Mr. Wilson's question may have been rhetorical and intended to protest what he sees as preferential treatment.

Mr. Jones, meanwhile, points out that Roto-Mill has two meters on site.

One is for the building on Riddell Road, which pays full water and sewer rates.

The other is for a filling station, which pays just the water rates.