Toronto residents may soon have to shell out more money for basic City services like water and garbage collection.

The City announced on Tuesday that it has proposed temporary "moderate raises" of three per cent in the price of water and solid waste management services in the interim.

Once approved, these interim rates are planned to take effect on New Year's Day, 2024, and will remain in place until the City's 2024 rate-supported operating and capital budgets are considered by council next February.

An interim rate hike has been pitched as a means to allow Solid Waste Management Services and Toronto Water to continue operating at full service levels and plan for future investment. The City claims this measure will help avoid larger rate hikes when a final budget is approved next year.

So how much will you have to pay for these basic services in January?

Solid waste collection is priced based on the size of garbage bins, meaning some residents pay more than others for their garbage pickup.

After the three per cent increase, the annual 2024 rate for solid waste collection for a single-family household will be $295.29 for a small bin (an increase of $8.60), $358.47 for a medium bin (up by $10.44), $486.86 for a large bin ($14.18 more than 2023) and $564.71 for an extra-large bin (an increase of $16.45).

As for the water bill, the average Toronto household using 230 cubic metres of water per year would be charged an additional $30 annually under the three per cent rate hike, or eight cents per day, totalling $1,039 in 2024.

Mayor Olivia Chow said in a statement that "the suggested interim rate and user fees fee maintain affordability for Toronto residents and businesses while maintaining these essential services."

Chow also reminded the public that "resident input plays a vital role in shaping these decisions, and I encourage Toronto residents and businesses to contribute their feedback."

The City's Executive Committee will consider these interim rate hikes at its upcoming meeting on December 5, and will be voted on by City Council during its upcoming meeting planned for December 13 through 15.

Rates would go into effect on January 1, 2024, if approved, and will remain until final rates are worked out during the 2024 budget process launching on January 10.

The announcement that residents will have to pay more for basic services comes the day after Mayor Chow and Premier Ford inked a new deal that promises $7.6 billion in benefits for Toronto.