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to see it get back in, and l certainly expect it to get back in." There are several options for doing so, including assessing the city's debt policy and adjusting the timing of other projects, he said. "The/e are lots of projects that we can take a look at and reallocate." Continued trom page 3 Ht's been a challenge to see how. as a city, we can live within the tar- gets we've set for our- selves, and I'm very pleased to see that we're able to do that." "And, with the capital budget, we'll have to make a couple of tough calls in terms of how we set our priorities for projects." Halloran has found her first budget process to be an educational experience. don't foresee any sur- prises "After all, it is the money of the citizens that we are setting the budget for." Halloran agrees. "I strongly encourage the community to come out and listen to this because it's all part of the process of paying taxes and getting satisfaction for the money that's being spent by city hall," she said. fsnderstand how council makes its decisions. Continued from page 4 2013 to pay for theypgmdts. Those upgrades include a new $98 million waste-water treatment plant for the City of Waterloo, and a $161 million facility in Kitchener to make sure the eMuent meets new provim cial standards brought on by the Walkerton water tragedy Water and sewer rates could balloon When all those costs are fac- tored out, including a proposed 19.9 per cent increase in the water rates over three years. the average house could be paying up to $470 for water and sewage by 2016. The average household is currently paying $192. But reéibnhl Eouncillors are trying to lessen the blow while endorsing the need to build the new infrastructure. "Nineteen per cent is too high; you can't swallow that," said Waterloo Coun. Jane Mitchell. "We've asked staff to come back with some different ideas about how to finance it." Waterloo Conn. Sean Strick- land said a better analysis is needed between the debt the region can incur and what peo- ple can afford to pay on their water bills. "I recognize and fully support the increased expenditures for our infrastructure. but we need to look at a model that balances it with debt and user rates," said WATERLOO CHRONICLE .Wednesday. February 14.1007 . s Strickland. "The issue is how much money do you borrow and when do you borrow/r "We have to look at the user rate, and what's sustaimble, and how much extra debt is reason- able to incur to help finance these projects." The problem with most of the projects, specifically the new waste-water treatment plant, is that you can't defer the project costs over a decade. Most of the capital costs are due up front. "We have to find a balance," said Strickland. "There seems to be an agreement on the scope of the capital projects, the issue is how we finance and how we spread that financing out."