Steinbach city council is working on establishing water and sewer rate increases for the years 2017 though 2020. It has given First Reading to a By-Law that would see the rates increase by three per cent in each of those four years. The increase would work out to about one dollar per month for the average residence. Councillor Michael Zwaagstra moved approval and says the increases are in keeping with provincial policy.

"Basically we are required to charge the amount that would be adequate to keep the system operating and to pay for any future upgrades. So this is a straight forward in and out (expense). The rate increases are in the range of approximately 3%. We'll submit this to the Public Utilities Board and they'll advise us how to proceed."

Mayor Chris Goertzen notes, by putting in a small increase in water and sewer rates every year, the city can stay away from the sticker shock of large increases as is currently being experienced in some neighbouring municipalities.

"We've seen from other municipalities and even in our own history where these rates haven't been reviewed in quite some time and we end up having large increases that are hard to absorb. Looking at this systematically and looking at it over a number of years is the appropriate way to go about this. These are modest increases."

Chief Administrative Officer Troy Warkentin says the Public Utilities Board will advise the city as to what kind of public consultation process should take place before council can consider giving final approval to the rate increases.