The city’s Finance Committee has been told there will be no rate shock despite the enormous cost of the Clean Drinking Water project.
Saint John Water told the committee $8 million will be saved in interest charges because $17 million has been set aside in a reserve fund for the project.
The Commissioner of Saint John Water, Brent McGovern is happy at how the project is progressing although there’s still a long way still to go. He estimates they’re just past the halfway point and there’s a lot of construction still to be done but adds the project is still on time and on budget.
McGovern says water rates will begin to stabalise after the flat rate exceeds $1400 a year. It has been rising each year by $6 a month and $72 for the year.
