Monday council meets to discuss water and waste water rates. The report on our agenda will identify all current and future water and waste water system capital needs to assess the immediate and longer-term implications. The report will also identify potential methods of cost recovery from the capital needs listing. These recovery methods may include other statutory authorities (e.g. Development Charges Act, 1997(D.C.A.), Municipal Act, etc.) as an offset to recovery through the water and wastewater rates. Identify existing operating costs by component and estimate future operating costs over the next ten years. This assessment identifies fixed and variable costs in order to project those costs sensitive to changes to the existing infrastructure inventory, as well as costs which may increase commensurate with growth; and Provide staff and Committee/Council the findings to assist in gaining approval of the rates for 2021and future years.
Rates, in their simplest form, can be defined as total costs to maintain the utility function divided by the total expected volume to be generated for the period. Total costs are usually a combination of operating costs (e.g. staff costs, distribution costs, maintenance, administration, etc.) and capital-related costs (e.g.past debt to finance capital projects, transfers to reserves to finance future expenditures, etc.).
The rate increases ( proposed) are in the chart below. To read the full study click the link or to find out more about water and waste water rate studies click the second link.
https://www.watsonecon.ca/expertise/sectors/municipal-finance/water-and-wastewater-rates-studies
Watson & Associates Economists
