HomeMy WebLinkAbout2014 Water Wastewater Rate Study 0,1 Watson
&Associates
ECONOMISTS LTD.
THE MUNICIPALITY OF BAYHAM
WATER AND WASTEWATER
RATE STUDY
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Plaza Three
101-2000 Argentia Rd.
Mississauga,Ontario
Canada L5N 1V9
Phone: (905)272-3600
Fax:(905)272-3602
e-mail: info@watson-econ.ca
AUGUST 26, 2014
� www.watson-econ.ca
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CONTENTS
Page
EXECUTIVE SUMMARY (i)
1. INTRODUCTION
1.1 Background 1-1
1.2 Study Process 1-2
1.3 Regulatory Changes in Ontario 1-2
1.4 Sustainable Water and Sewage Systems Act 1-3
1.5 Financial Plans Regulation 1-4
1.6 Water Opportunities Act, 2010 1-6
1.7 Forecast Growth and Servicing Requirements 1-7
2. CAPITAL INFRASTRUCTURE NEEDS
2.1 Capital Forecast 2-1
3. LIFE CYCLE COSTING
3.1 Overview of Life Cycle Costing 3-1
3.1.1 Definition 3-1
3.1.2 Financing Costs 3-1
3.1.3 Costing Methods 3-3
3.2 Impact on Budgets 3-6
4. CAPITAL COST FINANCING OPTIONS
4.1 Summary of Capital Cost Financing Alternatives 4-1
4.2 Development Charges Act, 1997 4-2
4.3 Municipal Act 4-3
4.4 Grant Funding Availability 4-4
4.5 Existing Reserves/Reserve Funds 4-5
4.6 Debenture Financing 4-5
4.7 Infrastructure Renewal Bonds 4-6
4.8 Recommended Capital Financing Approach 4-7
5. OVERVIEW OF EXPENDITURES AND REVENUES
5.1 Water Operating Expenditures 5-1
5.2 Water Operating Revenues 5-1
5.3 Wastewater Operating Expenditures 5-4
5.4 Wastewater Operating Revenues 5-4
6. PRICING STRUCTURES
6.1 Introduction 6-1
6.2 Alternative Pricing Structures 6-2
6.3 Assessment of Alternative Pricing Structures 6-4
6.4 Rate Structures in Ontario 6-8
6.5 Recommended Rate Structures 6-8
Watson&Associates Economists Ltd. H:IBayham12014 W&WW Rate Study and O.Reg Financial Plan\Report\Report.docx
CONTENTS
Page
7. ANALYSIS OF WATER AND WASTEWATER RATES
AND POLICY MATTERS
7.1 Introduction 7-1
7.2 Water Rates 7-1
7.3 Wastewater Rates 7-3
7.4 Alternate Calculation for the Bayham/Richmond Water System 7-3
8. RECOMMENDATIONS 8-1
APPENDICES
A BAYHAM & WATER SYSTEM INVENTORY DATA A-1
B BAYHAM WASTEWATER SYSTEM INVENTORY DATA B-1
C BAYHAM SYSTEM DETAILED WATER RATE CALCULATIONS C-1
D RICHMOND SYSTEM DETAILED WATER RATE CALCULATIONS D-1
E COMBINED BAYHAM & RICHMOND DETAILED WATER RATE CALCULATIONS E-1
F BAYHAM SYSTEM DETAILED WASTEWATER RATE CALCULATIONS F-1
Watson and Associates Economists Ltd. H:lBayham12014 W&WW Rate Study and O.Reg Financial PIanlReport\Report.docx
EXECUTIVE SUMMARY
Watson&Associates Economists Ltd. H:IBayham12014 W&WW Rate Study and O.Reg Financial Plan\Report\Report.docx
(i)
EXECUTIVE SUMMARY
The Municipality of Bayham retained Watson & Associates Economists Ltd. (Watson) to
undertake a water and wastewater rate study. Watson provided a water and wastewater rate
study in 2006 and a Water Financial Plan in 2010. This study extends off of those studies,
updating the analysis for current capital and operating forecasts, costing for lifecycle cost
requirements, current consumption and customer profiles. The results of this analysis provide
updated water and wastewater base charges and volume rates for customers within the
Municipality of Bayham. The rate analysis contained herein continues to provide fiscally
responsible practices that are in line with current Provincial legislation at a level of rate
increases that are reasonable.
The monthly base charge rates and volume rates for water and wastewater are anticipated to
increase annually by 5% each year from 2014 to 2024 for the Bayham system while the
Richmond system will increase at a rate of 10% annually from 2014 to 2024.
Table ES-1 to ES-3 summarizes the recommended water (Bayham System, Richmond System)
and wastewater (Bayham System) rates and average annual bill (assuming an annual volume of
198 m3) based on the analysis provided herein over the forecast period to 2024:
Table ES-1
Average Annual Residential Water Bill(Bayham-based on annual comsumption of 198 m3)
Description 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Base Monthly Charge $ 11.70 $ 11.93 $ 12.17 $ 12.42 $ 12.66 $ 12.92 $ 13.18 $ 13.44 $ 13.71 $ 13.98 $ 14.26
Annual Base Charge $ 140.40 $ 143.21 $ 146.07 $ 148.99 $ 151.97 $ 155.01 $ 158.11 $ 161.28 $ 164.50 $ 167.79 $ 171.15
Volume Charge per m3 $ 2.82 $ 2.97 $ 3.11 $ 3.27 $ 3.43 $ 3.60 $ 3.78 $ 3.97 $ 4.17 $ 4.38 $ 4.60
Annual Volume(m3) 198 198 198 198 198 198 198 198 198 198 198
Annual Voume Charge 558.36 587.30 616.66 647.49 679.39 713.28 748.99 786.52 825.84 867.12 910.42
Total Annual Water Bill $ 698.76 $ 730.50 $ 762.73 $ 796.49 $ 831.36 $ 868.29 $ 907.10 $ 947.80 $ 990.34 $1,034.91 $1,081.57
The Richmond System was formerly a private communal system for 53 users, which was recently
acquired as a result of an order by the province. Improvements have been made for treatment to
ensure water quality. Further improvements are required in the near future to replace the
distribution system, To finance these works, the municipality will have to issue debt to assist in
cash flowing these works.
Watson and Associates Economists Ltd. H:IBayham12014 W&WW Rate Study and O.Reg Financial PlanlReport\Report.docx
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Table ES-2
Average Annual Residential Water Bill(Richmond-based on annual comsumption of 198 m3)
Description 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Monthly Flat Charge $ 76.00 $ 83.33 $ 91.55 $ 100.84 $ 111.06 $ 121.91 $ 133.54 $ 146.75 $ 160.90 $ 176.43 $ 193.64
Annual Flat Charge $ 912.00 $1,000.00 $1,098.54 $1,210.05 $1,332.71 $1,462.90 $1,602.53 $1,761.02 $1,930.83 $2,117.20 $2,323.73
Volume Charge per m3 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Annual Volume(m3) 198 198 198 198 198 198 198 198 198 198 198
Annual Voume Charge
Total Annual Water Bill $ 912.00 $1,000.00 $1,098.54 $1,210.05 $1,332.71 $1,462.90 $1,602.53 $1,761.02 $1,930.83 $2,117.20 $2,323.73
Table ES-3
Average Annual Residential Wastewater Bill(based on annual volume of 198 m3)
Description 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Monthly Flat Charge $ 44.24 $ 46.41 $ 48.70 $ 50.96 $ 53.53 $ 56.06 $ 58.89 $ 62.01 $ 65.10 $ 68.47 $ 72.12
Annual Flat Charge $ 530.88 $ 556.86 $ 584.37 $ 611.51 $ 642.35 $ 672.78 $ 706.71 $ 744.15 $ 781.25 $ 821.66 $ 865.40
Volume Charge per m3 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Annual Volume(m3) 198 198 198 198 198 198 198 198 198 198 198
Annual Voume Charge
Total Annual Wastewater Bill $ 530.88 $ 556.86 $ 584.37 $ 611.51 $ 642.35 $ 672.78 $ 706.71 $ 744.15 $ 781.25 $ 821.66 $ 865.40
As noted, the Richmond system will need distribution system improvements which will require
debt financing. The municipality has limitations on its debt capacity so an alternate calculation
was considered. The alternate calculation of the Bayham and Richmond systems was
undertaken to combine both the operating and capital expenses/revenues. This was done to
decrease the annual increase in the Richmond system from 10% to 5%, while having a slight
increase to the Bayham water system from 5% to 6% annually. It has allowed short term use of
the existing reserves as an offset to debt borrowing. The calculated charges for the forecast
period are shown in Tables ES-4 (Bayham System) and ES-5 (Richmond System):
Table ES-4
Bayham&Richmond(Using Combined Operating and Capital)
Average Annual Residential Water Bill(Bayham-based on annual comsumption of 198 m3)
Description 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Base Monthly Charge $ 11.70 $ 11.93 $ 12.17 $ 12.42 $ 12.66 $ 12.92 $ 13.18 $ 13.44 $ 13.71 $ 13.98 $ 14.26
Annual Base Charge $ 140.40 $ 143.21 $ 146.07 $ 148.99 $ 151.97 $ 155.01 $ 158.11 $ 161.28 $ 164.50 $ 167.79 $ 171.15
Volume Charge per m3 $ 2.82 $ 2.99 $ 3.17 $ 3.36 $ 3.56 $ 3.78 $ 4.00 $ 4.24 $ 4.50 $ 4.77 $ 5.06
Annual Volume(m3) 198 198 198 198 198 198 198 198 198 198 198
Annual Voume Charge 558.36 592.91 628.04 665.72 705.67 748.01 792.89 840.46 890.89 944.34 1,001.00
Total Annual Water Bill $ 698.76 $ 736.12 $ 774.11 $ 814.72 $ 857.64 $ 903.02 $ 951.00 $1,001.74 $1,055.39 $1,112.13 $1,172.15
Watson and Associates Economists Ltd. H:IBayham12014 W&WW Rate Study and O.Reg Financial PlanlReport\Report.docx
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Table ES-5
Average Annual Residential Water Bill(Richmond-based on annual comsumption of 198 m3)
Description 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Monthly Flat Charge $ 76.00 $ 79.80 $ 83.79 $ 87.98 $ 92.38 $ 97.00 $ 101.85 $ 106.94 $ 112.29 $ 117.90 $ 123.80
Annual Flat Charge $ 912.00 $ 957.60 $1,005.48 $1,055.75 $1,108.54 $1,163.97 $1,222.17 $1,283.28 $1,347.44 $1,414.81 $1,485.55
Volume Charge per m3 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Annual Volume(m3) 198 198 198 198 198 198 198 198 198 198 198
Annual Voume Charge - - - - - - - - - - -
Total Annual Water Bill $ 912.00 $ 957.60 $1,005.48 $1,055.75 $1,108.54 $1,163.97 $1,222.17 $1,283.28 $1,347.44 $1,414.81 $1,485.55
Watson and Associates Economists Ltd. H:IBayham12014 W&WW Rate Study and O.Reg Financial PlanlReport\Report.docx
1 . INTRODUCTION
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1-1
1 . INTRODUCTION
1.1 Background
The Municipality currently services two systems, the Bayham water system and the Richmond
system. Currently, there are 755 metered water customers and 1,226 non-metered wastewater
customers in the Bayham system. For the Richmond system, there are 53 non-metered water
customers, all of which utilize septic tanks. The Municipality's water supply comes from the Port
Burwell Secondary System which feeds off the Elgin Primary Water System.
The Bayham water system is metered and utilizes a rate structure with a monthly base charge
as well as a consumption charge per cubic metre of $2.82 (2014 rate). The Richmond water
system is not metered and utilizes a flat rate charge. The Bayham wastewater system utilizes a
flat monthly rate. See Table 1-1 for all rates.
Table 1-1
Municipality of Bayham
Water and Wastewater Rates (Bayham System and Richmond System)
2014-Monthly Water Billing Rates 2014-Monthly Wastewater Billing Rates
Base Charge-Bayham System Rat Rate
$ 11.70 per Customer $ 44.24 per Customer
Volume Charge-Bayham System
$ 2.82 per m3
2014-Monthly Water Billing Rates
Rat Rate-Richmond System
$ 76.00 per Customer
With the legislative changes being made across Ontario as a result of the Walkerton crisis,
Municipalities will be required to conform to new statutes governing the management of water
and wastewater systems. Watson & Associates Economists Ltd. was retained by the
Municipality of Bayham to assist in addressing these changes in a proactive manner as they
relate to the water and wastewater systems. The assessment provided herein addresses
changes recommended to the water and wastewater rates based on the most current
information and forecasts the implications over the next ten year period.
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1.2 Study Process
The objectives of the study and the steps involved in carrying out this assignment are
summarized below:
• Identify all current and future water and wastewater system capital needs to assess the
immediate and longer-term implications;
• Identify potential methods of cost recovery from the capital needs listing. These
recovery methods may include other statutory authorities (e.g. Development Charges,
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 2015 and future years.
1.3 Regulatory Changes in Ontario
Resulting from the water crisis in Walkerton, significant regulatory changes have been made in
Ontario over the past decade. These changes arise as a result of the Walkerton Commission
and the 93 recommendations made by the Walkerton Inquiry Part II report. Areas of
recommendation include:
• watershed management and source protection;
• quality management;
• preventative maintenance;
• research and development;
• new performance standards;
• sustainable asset management; and
• lifecycle costing.
The legislation which would have most impacted municipal water and wastewater rates was the
Sustainable Water and Sewage Systems Act (SWSSA) which would have required
municipalities to implement full cost pricing. The Act was enacted in 2002, however, had not
been implemented pending the approval of its regulations. The Act was repealed as of January
1, 2013. It is expected that the provisions of the Water Opportunities Act will implement the
fundamental requirements of SWSSA. The following sections describe these various resulting
changes.
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1.4 Sustainable Water and Sewage Systems Act
As noted earlier, the Sustainable Water and Sewage Systems Act (SWSSA) was passed on
December 13, 2002. The intent of the Act was to introduce the requirement for municipalities to
undertake an assessment of the "full cost" of providing their water and wastewater services. It
is noted that this Act has been repealed, however, to provide broader context and
understanding to other legislation discussed herein, a description of the Act is provided below.
Full costs for water service was defined in subsection 3(7) of the Act and included "source
protection costs, operating costs, financing costs, renewal and replacement costs and
improvement costs associated with extracting, treating or distributing water to the public and
such other costs which may be specified by regulation." Similar provisions were made for
wastewater services in subsection 4(7) respecting the "collecting, treating or discharging waste
water."
The Act would have required the preparation of two reports for submission to the Ministry of the
Environment (or such other member of the Executive Council as may be assigned the
administration of this Act under the Executive Council Act). The first report was on the "full cost
of services" and the second was the "cost recovery plan." Once these reports were reviewed
and approved by the Ministry, the municipality would have been required to implement the plans
within a specified time period.
In regard to the "Full Cost of Services" report, the municipality (deemed a regulated entity under
the Act) would prepare and approve a report concerning the provision of water and sewage
services. This report was to include an inventory of the infrastructure, a management plan
providing for the long-term integrity of the systems and address the full cost of providing the
services (other matters may be specified by the regulations) along with the revenue obtained to
provide them. A professional engineer would certify the inventory and management plan portion
of the report. The municipality's auditor would be required to provide a written opinion on the
report. The report was to be approved by the municipality and then be forwarded to the Ministry
along with the engineer's certification and the auditor's opinion. The regulations would stipulate
the timing for this report.
The second report was referred to as a "Cost Recovery Plan" and would address how the
municipality intended to pay for the full costs of providing the service. The regulations were to
specify limitations on what sources of revenue the municipality may use. The regulations may
have also provided limits as to the level of increases any customer or class of customer may
experience over any period of time. Provision was made for the municipality to implement
increases above these limits however ministerial approval would be required first. Similar to the
first report, the municipal auditor would provide a written opinion on the report prior to Council's
adoption, and this opinion must accompany the report when submitted to the Province.
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The Act provided the Minister the power to approve or not approve the plans. If the Minister
was not satisfied with the report or if a municipality did not submit a plan, the Minister may have
a plan prepared. The cost to the Crown for preparing the plan would be recovered from the
municipality. As well, the Minister may direct two or more regulated municipalities to prepare a
joint plan. This joint plan may be directed at the onset or be directed by the Minister after
receiving the individual plans from the municipalities.
The Minister also had the power to order a municipality to generate revenue from a specific
revenue source or in a specified manner. The Minister may have also ordered a regulated entity
to do or refrain from doing such things as the Minister considered advisable to ensure that the
entity pays the full cost of providing the services to the public.
Once the plans were approved and in place, the municipality would be required to submit
progress reports. The timing of these reports and the information to be contained therein would
be established by the regulations. A municipal auditor's opinion must be provided with the
progress report. Municipalities would also revise the plans if they deem the estimate does not
reflect the full cost of providing the services, as a result of a change in circumstances, regulatory
or other changes that affect their plan, etc. The municipality would then revise its prior plan,
provide an auditor's opinion, and submit the plan to the Minister.
1.5 Financial Plans Regulation
On August 16, 2007, the MOE passed O.Reg 453/07 which requires the preparation of financial
plans for water (and wastewater) systems. The MOE has also provided a Financial Plan
Guidance Document to assist in preparing the plans. This report was prepared by Watson &
Associates and has subsequently been submitted to the Ministry. A copy of the Financial
Report can be found on CPUSB's website. A brief summary of the key elements of the
regulation is provided below:
• The financial plan will represent one of the key elements for the Municipality to obtain its
Drinking Water License;
• The financial plans shall be for a period of at least six years but longer planning horizons
are encouraged;
• As the regulation is under the Drinking Water Act, the preparation of the plan is
mandatory for water and encouraged for wastewater;
• The plan is considered a living document (i.e. will be updated as annual budgets are
prepared) but will need to be undertaken at a minimum every five years;
• The plans generally require the forecasting of capital, operating and reserve fund
positions, providing detailed inventories, forecasting future users and volume usage and
corresponding calculation of rates. In addition, PSAB information on the system must be
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provided for each year of the forecast (i.e. total non-financial assets, tangible capital
asset acquisitions, tangible capital asset construction, betterments, write-downs,
disposals, total liabilities and net debt);
• The financial plans must be made available to the public (at no charge) upon request
and be available on the Municipality's website. The availability of this information must
also be advertised; and
• The financial plans are to be approved by Resolution of the Council or governing body
indicating that the drinking water system is financially viable.
In general, the financial principles of the draft regulations follow the intent of SWSSA to move
municipalities towards financial sustainability. However, many of the prescriptive requirements
have been removed (e.g. preparation of two separate documents for Provincial approval, auditor
opinions, engineer certifications, etc.).
A Guideline ("Towards Financially Sustainable Drinking Shores - Water and Wastewater
Systems") has been developed to assist municipalities in understanding the Province's direction
and provides a detailed discussion on possible approaches to sustainability. The Province's
Principles of Financially Sustainable Water and Wastewater Services are provided below:
Principle #1: Ongoing public engagement and transparency can build support for, and
confidence in, financial plans and the system(s) to which they relate.
Principle #2: An integrated approach to planning among water, wastewater, and stormwater
systems is desirable given the inherent relationship among these services.
Principle #3: Revenues collected for the provision of water and wastewater services should
ultimately be used to meet the needs of those services.
Principle #4: Life-cycle planning with mid-course corrections is preferable to planning over
the short-term, or not planning at all.
Principle #5: An asset management plan is a key input to the development of a financial
plan.
Principle #6: A sustainable level of revenue allows for reliable service that meets or exceeds
environmental protection standards, while providing sufficient resources for
future rehabilitation and replacement needs.
Principle #7: Ensuring users pay for the services they are provided leads to equitable
outcomes and can improve conservation. In general, metering and the use of
rates can help ensure users pay for services received.
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Principle #8: Financial Plans are "living" documents that require continuous improvement.
Comparing the accuracy of financial projections with actual results can lead to
improved planning in the future.
Principle #9: Financial plans benefit from the close collaboration of various groups, including
engineers, accountants, auditors, utility staff, and municipal council.
1.6 Water Opportunities Act, 2010
As noted earlier, since the passage of the Safe Drinking Water Act, continuing changes and
refinements to the legislation have been introduced. Some of these Bills have found their way
into law while others have not been approved. Bill 72 was introduced into the legislation on May
18, 2010 and received Royal Assent on November 29, 2010.
On November 29, 2010, Bill 72, the Water Opportunities Act, 2010 received Royal Assent.
The Act provides for the following elements:
• Foster innovative water, wastewater and stormwater technologies, services and
practices in the private and public sectors;
• Prepare water conservation plans to achieve water conservation targets established by
the regulations; and
• Prepare sustainability plans for municipal water services, municipal wastewater services
and municipal stormwater services.
With regard to the sustainability plans:
• The Act extends from the water financial plans and requires a more detailed review of
the water financial plan and requires a full plan for wastewater and stormwater services;
and
• Regulations will provide performance targets for each service — these targets may vary
based on the jurisdiction of the regulated entity or the class of entity.
The Financial Plan shall include:
• An asset management plan for the physical infrastructure;
• A financial Plan;
• For water, a water conservation plan;
• An assessment of risks that may interfere with the future delivery of the municipal
service, including, if required by the regulations, the risks posed by climate change and a
plan to deal with those risks; and
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• Strategies for maintaining and improving the municipal service, including strategies to
ensure the municipal service can satisfy future demand, consider technologies, services
and practices that promote the efficient use of water and reduce negative impacts on
Ontario's water resources, and increase co-operation with other municipal service
providers.
Performance indicators will be established by service:
• May relate to the financing, operation or maintenance of a municipal service or to any
other matter in respect of which information may be required to be included in a plan;
• May be different for different municipal service providers or for municipal services in
different areas of the Province.
Regulations will prescribe:
• Timing;
• Contents of the plans;
• Identifying what portions of the plan will require certification;
• Public consultation process; and
• Limitations, updates, refinements, etc.
As noted earlier, it is expected that this Act will implement the principles of the Sustainable
Water and Sewage Systems Act once all regulations are put in place.
1.7 Forecast Growth and Servicing Requirements
The Bayham system services approximately 755 water customers and approximately 1,226
customers are serviced with wastewater services. The Richmond system services
approximately 53 non-metered water customers. Information on the existing number of
customers and existing billable volumes was obtained from the Municipality.
For future water and wastewater customers to be added to the systems, consideration has been
given to development potential within the various serviced areas of the Municipality over the
forecast period 2014-2024.
Table 1-2 provides for the forecast of water users and volumes within the Bayham System.
Table 1-3 provides for the forecast of water users and volumes within the Richmond System.
Table 1-4 provides the forecast of wastewater users and volumes.
Watson and Associates Economists Ltd. H:IBayham12014 W&WW Rate Study and O.Reg Financial PlanlReport\Report.docx
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pi Table 1-2
W Municipality of Bayham
o
m System User Forecast
0 Water Users Forecast-Bayham System
0
0
Year Total Users 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
y'
y
2015 8 4 8 8 8 8 8 8 8 8 8
D 2016 8 4 8 8 8 8 8 8 8 8
= 2017 8 4 8 8 8 8 8 8 8
2018 8 4 8 8 8 8 8 8
m 2019 8 4 8 8 8 8 8
o.
2020 8 4 8 8 8 8
2021 8 4 8 8 8
IC.) 2022 8 4 8 8
ii
2023 8 4 8
2024 8 4
p, Total 80 - 4 12 20 28 36 44 52 60 68 76
m3/user 198 198 I 198.I 198 198 I 198 198 I 198 I 198 I 198 198 I 198
'Annual Flow II II 792 I 2,376 I 3,960 I 5,544 I 7,128 I 8,712 I 10,296 I 11,880 I 13,464 I 15,048 I
m
m
a- Water Customer Forecast 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
N
- Existing 755 755 755 755 755 755 755 755 755 755 755
P New-Growth - 4 12 20 28 36 44 52 60 68 76
m
Total 755 759 767 775 783 791 799 807 815 823 831
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a)
O Water Consumption Forecast(m') 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0.
a)
Existing 156,188 156,188 156,188 156,188 156,188 156,188 156,188 156,188 156,188 156,188 156,188
Adjustment for Conservation -O
- - - - - - - - - -
A New - 792 2,376 3,960 5,544 7,128 8,712 10,296 11,880 13,464 15,048
- Total 156,188 156,980 158,564 160,148 161,732 163,316 164,900 166,484 168,068 169,652 171,236
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ai Municipality of Bayham
a
cn System User Forecast
MWater Users Forecast-Richmond System
0
O Year Total Users 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
y
(n
r— 2015 0 -
a- 2016 0 -
= 2017 0 - - - - - - - -
2018 0 - - - - - -
m 2019 0 - - - - - -
2020 0 - - - - -
0
2021 0
IC.) 2022 0 - - -
2023 0 --sot
2024 2024 0
p, Total 0 - - - - - - - - - -
m3/user 201 201 201 201 201 201 201 201 201 201 201 201
Annual Flow - I - I - I - I - I - I - I - I - I - I -
m
a
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'0 Water Customer Forecast 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0
0
O
Existing 53 ' 53 53 53 53 53 53 53 53 53 53
New-Growth
co Total 53 53 53 53 53 53 53 53 53 53 53
T
a)
o Water Consumption Forecast(ms) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
m'
m Existing 10,504 10,504 10,504 10,504 10,504 10,504 10,504 10,504 10,504 10,504 10,504
Adjustment for Conservation
cp New - - - - - - - - - - -
O Total 10,504 10,504 10,504 10,504 10,504 10,504 10,504 10,504 10,504 10,504 10,504
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C Table 1-4
m Municipality of Bayham
0 System User Forecast
0
O Wastewater Users Forecast
y
Year Total Users 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
r-
a' 2015 10 5 10 10 10 10 10 10 10 10 10
= 2016 10 5 10 10 10 10 10 10 10 10
2017 10 5 10 10 10 10 10 10 10
m 2018 10 5 10 10 10 10 10 10
2019 10 5 10 10 10 10 10
2020 10 5 10 10 10 10
IC.) 2021 10 5 10 10 10
0
ii
2022 10 5 10 10
2023 10 5 10
p, 2024 10 5
Total 100 - 5 15 25 35 45 55 65 75 85 95
m3/user 199 1991 1991 1991 1991 1991 1991 199 1991 1991 1991 199
m [Annual Flow 11 I[ - I 995 I 2,985 I 4,975 1 6,965 1 8,955 1 10,945 1 12,935 I 14,925 1 16,915 1 18.905 1
m
.a- Wastewater Customer Forecast 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
0
- Existing 1,226 1,226 1,226 1,226 1,226 1,226 1,226 1,226 1,226 1,226 1,226
P New-Growth - 5 15 25 35 45 55 65 75 85 95
c
m Total 1,226 1,231 1,241 1,251 1,261 1,271 1,281 1,291 1,301 1,311 1,321
-Ti
a)
O Wastewater Flows Forecast(ms) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
m'
Existing 249,257 249,257 249,257 249,257 249,257 249,257 249,257 249,257 249,257 249,257 249,257
New - 995 2,985 4,975 6,965 8,955 10,945 12,935 14,925 16,915 18,905
A Total 249,257 250,252 252,242 254,232 256,222 258,212 260,202 262,192 264,182 266,172 268,162
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2. CAPITAL INFRASTRUCTURE NEEDS
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2. CAPITAL INFRASTRUCTURE NEEDS
2.1 Capital Forecast
Capital forecasts have been provided for the water and wastewater systems and are presented
on Tables 2-1, 2-2 and 2-3 (Note: the costs are in inflated dollars). The basis for these
forecasts is the Municipality's Capital Forecasts and works identified as asset replacement
needs based on the inventory data provided for the water& wastewater systems.
A summary of the capital works related to Bayham water services is provided below:
Water Service- Bayham
Capital Budget Forecast
Inflated $
Description Budget Total
(2014-2024)
Capital Expenditures
Shared Pick-up truck(20% Bayham Water) 6,000
Water meter and backflow prevented replacement(Bayham 270,000
system)
Vienna Booster Station Upgrades 5,000
Radio meters/heads 5,000
Studies
Water Rate Study&Financial Plan 11,550
Total Capital Expenditures 297,550
A summary of the capital works related to Richmond water services is provided below:
Water Service-Richmond
Capital Budget Forecast
Inflated $
Description Budget Total
(2014-2024)
Capital Expenditures
Richmond water--building roofing and stand by generator 46,000
with associated transfer switch and electrical
Shared Pick-up truck(10% Richmond) 3,000
Richmond water treatment---equipment rebuilds and or 44,000
replacement
Replacement of the Richmond water distribution system 879,000
including water metering and backflow prevention
Total Capital Expenditures 972,000
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2-2
A summary of the capital works related to Bayham wastewater services is provided below:
Description Budget Total
(2014-2024)
Capital Expenditures
Air release valves change outs 95,000
Pumping Station Roofing 18,000
Shared Pick up truck(70%) 22,000
Wastewater Generator Condition Assessment,Load testing 52,000
and possible repairs
Wastewater Manhole Rehabilitation (Port Burwell collection 63,000
system)
Wastewater treatment plant process assessment and
concrete structural integrity review along with potential 159,000
repairs
Wastewater equipment(pumps,blowers,electric motors) 263,000
replacement to high efficient
Pump rebuilds 35,000
Air release valves -PS 2&5&Forcemains 15,500
Air blower rebuilds 4,800
Septage Building Railing 4,000
Computer Upgrades 4,000
Studies
Wastewater Rate Study&Financial Plan 5,775
Total Capital Expenditures 741,075
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Table 2-1
Municipality of Bayham
Water Service-Bayham
Capital Budget Forecast
Inflated$
Budget Forecast
Description 2014 Total 2015 2016 I 2017 2018 I 2019 I 2020 I 2021 I 2022 I 2023 2024
Capital Expenditures
Shared Pick-up truck(20%Bayham Water) - 6,000 - - - 6,000 - - - - - -
Water meter and backflow prevented replacement(Bayham - 270,000 52,000 53,000 54,000 55,000 56,000
system)
Vienna Booster Station Upgrades 5,000 - - - - - - - - - -
Radio meters/heads 5,000 - - - - - - - - - -
Studies - - - - - - - - - - - -
Water Rate Study&Financial Plan 11,550 - - - - - - - - - - -
Total Capital Expenditures 21,550 276,000 - - - 6,000 - 52,000 53,000 54,000 55,000 56,000
N
W
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx.xls
Table 2-2
Municipality of Bayham
Water Service-Richmond
Capital Budget Forecast
Inflated$
Budget Forecast
Description Total
2014 2015 1 2016 2017 2018 2019 2020 2021 2022 2023 1 2024
Capital Expenditures
Richmond water--building roofing and stand by generator with - 46,000 15,000 15,000 16,000 - - - - - - -
associated transfer switch and electrical
Shared Pick-up truck(10%Richmond) - 3,000 - - - 3,000 - - - - - -
Richmond water treatment---equipment rebuilds and or - 44,000 14,000 15,000 15,000
replacement
Replacement of the Richmond water distribution system - 879,000 287,000 293,000 299,000
including water metering and backflow prevention
Total Capital Expenditures - 972,000 15,000 15,000 16,000 3,000 - - - 301,000 308,000 314,000
N
-P
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx.xls
Table 2-3
Municipality of Bayham
Wastewater Service
Capital Budget Forecast
Inflated$
Description Budget Forecast
Total
2014 2015 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 2023 2024
Capital Expenditures
Air release valves change outs - 95,000 15,000 15,000 16,000 16,000 16,000 17,000 - - - -
Pumping Station Roofing - 18,000 3,000 3,000 3,000 3,000 3,000 3,000 - - - -
Shared Pick up truck(70%) - 22,000 - - - 22,000 - - - - - -
Wastewater Generator Condition Assessment,Load testing and -
52,000 8,000 8,000 9,000 9,000 9,000 9,000
-
possible repairs
Wastewater Manhole Rehabilitation(Port Burwell collection -
63,000 10,000 10,000 10,000 11,000 11,000 11,000
-
system)
Wastewater treatment plant process assessment and concrete - -
159,000 25,000 26,000 26,000 27,000 27,000 28,000
-
structural integrity review along with potential repairs
Wastewater equipment(pumps,blowers,electric motors) -
263,000 42,000 43,000 43,000 44,000 45,000 46,000
-
replacement to high efficient
Pump rebuilds 35,000 - - - - - - - - - - -
Air release valves-PS 2&5&Forcemains 15,500 - - - - - - - - - - -
Air blower rebuilds 4,800 - - - - - - - - - - -
Septage Building Railing 4,000 - - - - - - - - - - -
Computer Upgrades 4,000 - - - - - - - - - - -
Studies
Wastewater Rate Study&Financial Plan 5,775 - - - - - _ - - - - - -
Total Capital Expenditures 69,075 672,000 103,000 105,000 107,000 132,000 111,000 114,000 - - 1 - -
N
o
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3. LIFE CYCLE COSTING
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3. LIFE CYCLE COSTING
3.1 Overview of Life Cycle Costing
3.1.1 Definition
For many years, life cycle costing has been used in the field of maintenance engineering and to
evaluate the advantages of using alternative materials in construction or production design. The
method has gained wider acceptance and use in the areas of industrial decision-making and the
management of physical assets.
By definition, life cycle costs are all the costs which are incurred during the life cycle of a
physical asset, from the time its acquisition is first considered to the time it is taken out of
service for disposal or redeployment. The stages which the asset goes through in its life cycle
are specification, design, manufacture (or build), install, commission, operate, maintain and
disposal. Figure 3-1 depicts these stages in a schematic form.
3.1.2 Financing Costs
This section will focus on financing mechanisms in place to fund the costs incurred throughout
the asset's life.
In a municipal context, services are provided to benefit tax/rate payers. Acquisition of assets is
normally timed in relation to direct needs within the community. At times, economies of scale or
technical efficiencies will lead to oversizing an asset to accommodate future growth within the
Municipality. Over the past few decades, new financing techniques such as development
charges have been employed based on the underlying principle of having tax/rate payers who
benefit directly from the service paying for that service. Operating costs which reflect the cost of
the service for that year are charged directly to all existing tax/rate payers who have received
the benefit. Operating costs are normally charged through the tax base or user rates.
Capital expenditures are recouped through several methods; operating budget contributions,
development charges, reserves, developer contributions and debentures, being the most
common.
New construction related to growth could produce development charges and developer
contributions (e.g. works internal to a subdivision which are the responsibility of the developer to
construct) to fund a significant portion of projects, where new assets are being acquired to allow
growth within the Municipality to continue. As well, debentures could be used to fund such
works, with the debt charge carrying costs recouped from taxpayers in the future.
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Figure 3-1
Life Cycle Costing
User Cost to User
Select
or Specify
Purchase
Install Investment
Commission Costs
Operate ► Operating Costs
Maintain to. Maintenance Costs
•
Monitor
►
Monitoring Costs
(Throughout Life
of Assets)
(To End of
Useful Life)
•
Remove
mi.
Costs
I
Dispose Life Cycle
Costs
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However, capital construction to replace existing infrastructure is largely not growth-
related and will therefore not yield development charges or developer contributions to
assist in financing these works. Hence, a Municipality will be dependent upon
debentures, reserves and contributions from the operating budget to fund these works.
Figure 3-2 depicts the costs of an asset from its initial conception through to replacement and
then continues to follow the associated costs through to the next replacement.
As referred to earlier, growth-related financing methods such as development charges and
developer contributions could be utilized to finance the growth-related component of the new
asset. These revenues are collected (indirectly) from the new homeowner who benefits directly
from the installation of this asset. Other financing methods may be used as well to finance the
non-growth related component of this project; reserves which have been collected from past
tax/rate payers, operating budget contributions which are collected from existing tax/rate payers
and debenturing which will be carried by future tax/rate payers. Ongoing costs for monitoring,
operating and maintaining the asset will be charged annually to the existing tax/rate payer.
When the asset requires replacement, the sources of financing will be limited to reserves,
debentures and contributions from the operating budget. At this point, the question is raised; "If
the cost of replacement is to be assessed against the tax/rate payer who benefits from the
replacement of the asset, should the past tax/rate payer pay for this cost or should future rate
payers assume this cost?" If the position is taken that the past user has used up the asset,
hence he should pay for the cost of replacement, then a charge should be assessed annually,
through the life of the asset to have funds available to replace it when the time comes. If the
position is taken that the future tax/rate payer should assume this cost, then debenturing and,
possibly, a contribution from the operating budget should be used to fund this work.
Charging for the cost of using up of an asset is the fundamental concept behind depreciation
methods utilized by the private sector. This concept allows for expending the asset as it is used
up in the production process. The tracking of these costs forms part of the product's selling
price and hence end users are charged for the asset's depreciation. The same concept can be
applied in a municipal setting to charge existing users for the asset's use and set those funds
aside in a reserve to finance the cost of replacing the asset in the future.
3.1.3 Costing Methods
There are two fundamental methods of calculating the cost of the usage of an asset and for the
provision of the revenue required when the time comes to retire and replace it. The first method
is the Depreciation Method. This method recognizes the reduction in the value of the asset
through wear and tear and aging. There are two commonly used forms of depreciation: the
straight-line method and the reducing balance method.
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Figure 3-2
Financing Life Cycle Costs
Financing Methods
Available "NEW ASSET"
User
Development Charges
Select
Reserves or Specify
Debentures
Operating Budget Contributions Purshase
Install
Commission
Operate
Maintain
Operating Budget
Monitor
(Throughout Life
of Assets)
1
(To End of
Useful Life)
Debentures Remove
"REPLACEMENT ASSET"
Reserves User
Operating Budget Contributions
Dispose Select
or Specify
Purchase
Install
Commission
Operate
Maintain
Operating Budget
Monitor
(Throughout Life
of Assets)
(To End of
Useful Life)
Debentures Remove
Reserves
Operating Budget Contributions
Dispose
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FIGURE 3-3
STRAIGHT LINE DEPRECIATION
Total Annual Contributions Equal Original Cost
Original Cost
$x $x $x $x $x $x $x $x $x $x
Original Cost-Salvage Cost
Formula:
Number of Years of Useful Life
SINKING FUND METHOD
1. "Estimate Future Replacement Cost"
"Annual Inflation" Future
Original Cost Replacement
Cost
2. "Estimate Annual Contribution which will Grow with Interest to Equal Future Replacement Cost"
"Annual Interest Earnings"
Future
Replacement
Cost
$x $x $x $x $x $x $x $x $x $x
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The straight line method is calculated by taking the original cost of the asset, subtracting its
estimated salvage value (estimated value of the asset at the time it is disposed of) and dividing
this by the estimated number of years of useful life. The reducing balance method is calculated
by utilizing a fixed percentage rate and this rate is applied annually to the undepreciated
balance of the asset value.
The second method of life cycle costing is the sinking fund method. This method first estimates
the future value of the asset at the time of replacement. This is done by inflating the original
cost of the asset at an assumed annual inflation rate. A calculation is then performed to
determine annual contributions (equal or otherwise) which, when invested, will grow with
interest to equal the future replacement cost.
The preferred method used herein for forecasting purposes is the sinking fund method of life
cycle costing.
3.2 Impact on Budgets
Detailed water and wastewater systems inventory information was obtained from the
Municipality. The age of the Bayham water system dates back to the early 1970's. The water
system has been expanded throughout the years. The Richmond System dates back to the
1960's and requires a significant amount of replacements. The Bayham wastewater system
dates back to the mid 1980s. The total value of existing water infrastructure is $15.82 million
and the value of existing wastewater infrastructure is $33.23 million.
The detailed water and wastewater inventory are provided in Appendices A and B, respectively.
As well, the lifecycle "sinking fund" contribution amounts for each piece of infrastructure have
also been included. These calculations determine the level of investment the Municipality may
wish to consider as part of its budgeting practices. This information is summarized in Table 3-1.
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Table 3-1
Municipality of Bayham
Summary of Bayham/Richmond Water and Bayham Wastewater Infrastructure
Area Total Replacement Amount to be funded Net Replacement for Annual Lifecycle
Value in 10 year forecast Future Lifecycle Replacement
Water-Bayham
Water Curb Stops, 1,800,184 269,067 1,531,117 68,505
Hydrants, Vales, Meters
Watermains 12,889,957 - 12,889,957 365,107
Water-Richmond
Richmond System 1,127,500 787,500 340,000 13,196
Total Water 15,817,641 1,056,567 14,761,074 446,808
Wastewater
Wastewater Facilities 8,387,864 2,223,540 6,164,324 274,110
Sanitary Sewers 24,842,728 - 24,842,728 622,398
Total Wastewater 33,230,592 2,223,540 31,007,052 896,507
Total 49,048,233 3,280,107 45,768,126 1,343,315
Investment per customer is$20,951 for water and$27,105 for wastewater
It is noted that the inventory of the complete water and wastewater systems may be required to
be assessed and reported on by a professional engineer as part of the documentation required
under the Water Opportunities Act. The detailed specifics of the reporting will not be known
until the Province has set these standards by regulation. With respect to lifecycle costing
contained in the Appendices the following information was taken under consideration:
• approximate age;
• material type;
• main lengths;
• diameter of the mains;
• estimated useful life; and
• estimated replacement costs.
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4. CAPITAL COST FINANCING OPTIONS
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4. CAPITAL COST FINANCING OPTIONS
4.1 Summary of Capital Cost Financing Alternatives
Historically, the powers that municipalities had to raise alternative revenues to taxation to fund
capital services have been restrictive. Over the past decade, legislative reforms have been
introduced. Some of these have expanded municipal powers (e.g. Bill 26 introduced in 1996 to
provide for expanded powers for imposing fees and charges), while others appear to restrict
them (Bill 98 in 1997 providing amendments to the Development Charges Act).
The Province passed a new Municipal Act which came into force on January 1, 2003. Part XII
of the Act and O.Reg. 584/06 govern a Municipality's ability to impose fees and charges. In
contrast to the previous Municipal Act, this Act provides municipalities with broadly defined
powers and does not differentiate between fees for operating and capital purposes. It is
anticipated that the powers to recover capital costs under the previous Municipal Act will
continue within the new Statutes and Regulations, as indicated by s.9(2) and s.452 of the new
Municipal Act.
Under s.484 of Municipal Act, 2001, the Local Improvement Act was repealed with the in force
date of the Municipal Act (January 1, 2003). The municipal powers granted under the Local
Improvement Act now fall under the jurisdiction of the Municipal Act. To this end, on December
20, 2002, O.Reg. 390/02 was filed, which allowed for the Local Improvement Act to be deemed
to remain in force until April 1, 2003. However, O.Reg. 119/03 was enacted on April 19, 2003
which restores many of the previous Local Improvement Act provisions; however, the authority
is now provided under the Municipal Act.
The methods of capital cost recovery available to municipalities are provided as follows:
SECTION
RECOVERY METHODS REFERENCE
• Development Charges Act, 1997 4.2
• Municipal Act 4.3
• Fees and Charges
• Sewer and Water Area Charges
• Connection Fees
• Local Improvements
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4.2 Development Charges Act, 1997
In November, 1996, the Ontario Government introduced Bill 98, a new Development Charges
Act. The Province's stated intentions were to "create new construction jobs and make home
ownership more affordable" by reducing the charges and to "make municipal Council decisions
more accountable and more cost effective". The basis for this Act is to allow municipalities to
recover the growth-related capital cost of infrastructure necessary to accommodate new growth
within the Municipality. Generally the new Act provided the following changes to the former Act:
• Replace those sections of the 1989 DCA which govern municipal development charges.
(Education development charges are not to be significantly altered at this time);
• Limit services which can be financed from development charges, specifically excluding
parkland acquisition, administration buildings, and cultural, entertainment, tourism, solid
waste management and hospital facilities;
• Ensure that the level of service used in the calculation of capital costs will not exceed the
average level of service over the previous decade. Level of service is to be measured
from both a quality and quantity perspective;
• Provide that uncommitted excess capacity available in existing municipal facilities and
benefits to existing residents are removed from the calculation of the charge;
• Ensure that the development charge revenues collected by municipalities are spent only
on those capital costs identified in the calculation of the development charge;
• Require municipalities to contribute funds (e.g. taxes, user charges or other non-
development charge revenues) to the financing of certain projects primarily funded from
development charges. The municipal contribution is 10 percent for services such as
recreation, parkland development, libraries, etc;
• Permit (but apparently not require) municipalities to grant developers credits for the
direct provision of services identified in the development charge calculation and, when
credits are granted, require the Municipality to reimburse the developer for the costs the
Municipality would have incurred if the project had been financed from the development
charge reserve fund;
• Set out provisions for front-end financing capital projects (limited to essential services)
required to service new development; and
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• Set out provisions for appeals and complaints, and transitional rules, including that
municipalities will have up to 18 months from the date of proclamation of the new Act to
establish new development charge by-laws, otherwise the old by-laws will expire.
The Municipality does not presently impose development charges.
4.3 Municipal Act
4.3.1 Part XII of the Municipal Act provides municipalities with broad powers to impose fees
and charges via passage of a by-law. These powers, as presented in s.391(1), include
imposing fees or charges:
• "for services or activities provided or done by or on behalf of it;
• for costs payable by it for services or activities provided or done by or on behalf of any
other municipality or local board; and
• for the use of its property including property under its control."
Restrictions are provided to ensure that the form of the charge is not akin to a poll tax. Any
charges not paid under this authority may be added to the tax roll and collected in a like
manner. The fees and charges imposed under this part are not appealable to the OMB.
4.3.2 s.221 of the previous Municipal Act, permitted municipalities to impose charges, by by-
law, on owners or occupants of land who would or might derive benefit from the construction of
sewage (storm and sanitary) or water works being authorized (in a Specific Benefit Area). For a
by-law imposed under this section of the previous Act:
• A variety of different means could be used to establish the rate and recovery of the costs
could be imposed by a number of methods at the discretion of Council (i.e. lot size,
frontage, number of benefiting properties, etc.);
• Rates could be imposed in respect to costs of major capital works, even though an
immediate benefit was not enjoyed;
• Non-abutting owners could be charged;
• Recovery was authorized against existing works, where a new water or sewer main was
added to such works, "notwithstanding that the capital costs of existing works has in
whole or in part been paid."
• Charges on individual parcels could be deferred;
• Exemptions could be established;
• Repayment was secured; and
• OMB approval was not required.
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While under the new Municipal Act no provisions are provided specific to the previous s.221, the
intent to allow capital cost recovery through fees and charges is embraced within s.391. The
new Municipal Act also maintains the ability of municipalities to impose capital charges for water
and sewer services on landowners not receiving an immediate benefit from the works. Under
s.391(2) of the Act, "a fee or charge imposed under subsection (1) for capital costs related to
sewage or water services or activities may be imposed on persons not receiving an immediate
benefit from the services or activities but who will receive a benefit at some later point in time."
Also, capital charges imposed under s.391 are not appealable to the OMB on the grounds that
the charges are "unfair or unjust".
4.3.3 s.222 of the previous Municipal Act permitted municipalities to pass a by-law requiring
buildings to connect to the Municipality's sewer and water systems, charging the owner for the
cost of constructing services from the mains to the property line. Under the new Municipal Act,
this power still exists under Part II, General Municipal Powers (s.9 (3) b of the Municipal Act).
Enforcement and penalties for this use of power are contained in s.427 (1) of the Municipal Act.
4.3.4 Under the previous Local Improvement Act:
• A variety of different types of works could be undertaken, such as watermain, storm and
sanitary sewer projects, supply of electrical light or power, bridge construction,
sidewalks, road widening and paving;
• Council could pass a by-law for undertaking such work on petition of a majority of
benefiting taxpayers, on a 2/3 vote of Council and on sanitary grounds, based on the
recommendation of the Minister of Health. The by-law was required to go to the OMB,
which might hold hearings and alter the by-law, particularly if there were objections;
• The entire cost of a work was assessed only upon the lots abutting directly on the work,
according to the extent of their respective frontages, using an equal special rate per
metre of frontage; and
• As noted, this Act was repealed as of April 1, 2003; however, O.Reg. 119/03 was
enacted on April 19, 2003 which restores many of the previous Local Improvement Act
provisions; however, the authority is now provided under the Municipal Act.
4.4 Grant Funding Availability
Since the early 1980's, the level of Provincial and Federal assistance toward municipal
infrastructure has declined significantly. By the mid 1990's, there were very limited funds
available from senior levels of government. In mid-2000, initiatives from the Provincial and
Federal level were announced; providing for a new program (OSTAR) to assist small cities,
Municipalities and rural areas in addressing infrastructure improvements. In November 2004,
another program (COMRIF) was introduced which also provided combined assistance from the
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senior governments until early 2007. Subsequently Federal and Provincial Funding have been
made available under the Build Canada Fund and Stimulus Fund Programs. Under the specific
requirements of these programs, the projects needed to be "shovel ready" and were allocated
on a case by case basis.
In August 2012, the province of Ontario initiated the Municipal Infrastructure Investment
Initiative (MITI). In supporting the efforts of communities to restore and revitalize their public
infrastructure, this initiative provides one-time provincial funding to improve asset management
planning in small municipalities and local service boards. In addition, funding will be made
available for municipal infrastructure projects under this initiative. Any municipality or local
service board seeking capital funding in the future must demonstrate how its proposed project
fits within a detailed asset management plan. To assist in defining the components of an asset
management plan, the Province produced a document entitled Building Together: Guide for
Municipal Asset Management Plans. This guide documents the components, information and
analysis that are required to be included in a municipality's asset management plan under this
initiative.
4.5 Existing Reserves/Reserve Funds
The Municipality has established reserves and reserve funds for water and wastewater costs.
The following table summarizes the water and wastewater reserves utilized in this analysis and
their respective balances at December 31, 2013:
Reserve Dec. 31 2013
Water
Capital Reserve 481,349
Water Rate Stabilization Reserve 555,660
Wastewater
Capital Reserve 53,483
Wastewater Rate Stabilization Reserve 61,740
Wastewater Capital & Rate Stabilization Reserve 1,366,123
4.6 Debenture Financing
Although it is not a direct method of minimizing the overall cost to the ratepayer, debentures are
used by municipalities to assist in cash flowing large capital expenditures.
The Ministry of Municipal Affairs regulates the level of debt incurred by Ontario municipalities,
through its powers established under the Municipal Act. Ontario Regulations 403/02 provides
the current rules respecting municipal debt and financial obligations. Through the rules
established under these regulations, a Municipality's debt capacity is capped at a level where no
more than 25% of the Municipality's own purpose revenue may be allotted for servicing the debt
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4-6
(i.e. debt charges). The Municipality of Bayham's 2014 calculation on Debt Capacity, as shown
on Schedule 81 of the Municipality's 2013 Financial Information Return (FIR). This calculates to
the Municipality's estimated annual repayment limit of approximately $1.25 million.
4.7 Infrastructure Renewal Bonds
Infrastructure Ontario (10) is an arms length crown corporation, which has been set up as a tool
to offer low-cost and longer-term financing to assist municipalities in renewing their
infrastructure (this corporation has merged the former OSIFA into its operations) 10 combines
the infrastructure renewal needs of municipalities into an infrastructure investment "pool". 10
will raise investment capital to finance loans to the public sector by selling a new investment
product called Infrastructure Renewal Bonds to individual and institutional investors.
10 provides access to infrastructure capital that would not otherwise be available to smaller
borrowers. Larger borrowers receive a longer term on their loans than they could obtain in the
financial markets, and can also benefit from significant savings on transaction costs such as
legal costs and underwriting commissions. Under the 10 approach, all borrowers receive the
same low interest rate. 10 will enter into financial agreement with each Municipality subject to
technical and credit reviews, for a loan up to the maximum amount of the loan request.
The first round of the former OSIFA's 2004-05 infrastructure renewal program was focused on
municipal priorities of clean water infrastructure, sewage treatment facilities, municipal roads
and bridges, public transit and waste management infrastructure. The focus of the program was
expanded in 2005/2006 somewhat to include:
• clean water infrastructure;
• sewage infrastructure;
• waste management infrastructure;
• municipal roads and bridges;
• public transit;
• municipal long-term care homes;
• renewal of municipal social housing and culture; and
• tourism and recreation infrastructure.
With the merging of OSIFA and 10, the program was broadened in late 2006 to also include
municipal administrative buildings, local police and fire stations, emergency vehicles and
equipment, ferries, docks and municipal airports.
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4-7
It is noted that the interest rates will vary from time to time. The following interest rates were
available to municipalities for the following term, based on a serial repayment schedule as of
August 26, 2014:
Indicative Lending Rates as of
August 26, 2014
Term Serial
5 Year 1.92%
10 Year 2.64%
15 Year 3.04%
20 Year 3.31%
25 Year 3.49%
30 Year 3.60%
To be eligible to receive these loans, municipalities must submit a formal application along with
pertinent financial information. Allotments are prioritized and distributed based upon the
Province's assessment of need.
The analysis provided herein assumes that the Municipality will borrow approximately $758,400
for water services over the forecast, for a ten year term at 3.0%. Appendix C, Table D-2
provides the estimated repayment schedule for these loans.
4.8 Recommended Capital Financing Approach
Of the various funding alternatives provided in this section, the following are recommended for
further consideration by the Municipality of Bayham for the capital expenditures provided in
Chapter 2:
Capital Financing Bayham Richmond Bayham
Water Water Wastewater
Provincial/Federal Grants
Development Charges Reserve Fund
Non-Growth Related Debenture Requirements $ 758,400
Growth Related Debenture Requirements
Operating Contributions
Lifecycle Reserve Fund
Reserves and Reserve Funds $ 276,000 $ 213,600 $ 672,000
Total Capital Financing $ 276,000 $ 972,000 $ 672,000
Tables 4-1, 4-2 and 4-3 provide for the full capital expenditure and funding program by year for
water (Bayham & Richmond) and wastewater respectively.
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Table 4-1
Municipality of Bayham
Water Service-Bayham
Capital Budget Forecast
Inflated$
Budget Forecast
Description 2014 Total 2015 2016 I 2017 2018 I 2019 I 2020 I 2021 I 2022 I 2023 2024
Capital Expenditures
Shared Pick-up truck(20%Bayham Water) - 6,000 - - - 6,000 - - - - - -
Water meter and backflow prevented replacement(Bayham - 270,000 52,000 53,000 54,000 55,000 56,000
system)
Vienna Booster Station Upgrades 5,000 - - - - - - - - - -
Radio meters/heads 5,000 - - - - - - - - - -
Studies - - - - - - - - - - -
Water Rate Study&Financial Plan 11,550 - - - - - - - - - -
Total Capital Expenditures 21,550 276,000 - - 6,000 - 52,000 53,000 54,000 55,000 56,000
Capital Financing
Provincial/Federal Grants -
Development Charges Reserve Fund - - - - - - - - - -
Non-Growth Related Debenture Requirements - - - - - - - - - -
Growth Related Debenture Requirements - - - - - - - - - -
Operating Contributions - - - - - - - - - -
Lifecycle Reserve Fund - - - - - - - - - -
Water Reserve 21,550 276,000 - - - 6,000 - 52,000 53,000 54,000 55,000 56,000
Total Capital Financing 21,550 276,000 - - - 6,000 . - 52,000 53,000 54,000 55,000 56,000
Oo
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Table 4-2
Municipality of Bayham
Water Service-Richmond
Capital Budget Forecast
Inflated$
Budget Forecast
Description Total
2014 2015 1 2016 2017 2018 2019 2020 2021 2022 2023 1 2024
Capital Expenditures
Richmond water--building roofing and stand by generator with - 46,000 15,000 15,000 16,000 - - - - - - -
associated transfer switch and electrical
Shared Pick-up truck(10%Richmond) - 3,000 - - - 3,000 - - - - - -
Richmond water treatment---equipment rebuilds and or - 44,000 14,000 15,000 15,000
replacement
Replacement of the Richmond water distribution system 879,000 287,000 293,000 299,000
including water metering and backflow prevention
Total Capital Expenditures - 972,000 15,000 15,000 16,000 3,000 - - - 301,000 308,000 314,000
Capital Financing
Provincial/Federal Grants -
Development Charges Reserve Fund - - - - - - - - - - - -
Non-Growth Related Debenture Requirements - 758,400 11,000 8,400 5,000 - - - - 157,000 274,000 303,000
Growth Related Debenture Requirements - - - - - - - - - - - -
Operating Contributions - - - - - - - - - - - -
Lifecycle Reserve Fund - - - - - - - - - - - -
Water Reserve - 213,600 4,000 6,600 11,000 3,000 - - - 144,000 34,000 11,000
Total Capital Financing - 972,000 15,000 15,000 16,000 3,000 1 - - - 301,000 308,000 314,000
Cfl
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Table 4-3
Municipality of Bayham
Wastewater Service
Capital Budget Forecast
Inflated$
Description Budget Forecast
Total
2014 2015 2016 I 2017 I 2018 I 2019 I 2020 2021 I 2022 2023 2024
Capital Expenditures
Air release valves change outs - 95,000 15,000 15,000 16,000 16,000 16,000 17,000 - - - -
Pumping Station Roofing - 18,000 3,000 3,000 3,000 3,000 3,000 3,000 - - - -
Shared Pick up truck(70%) - 22,000 - - - 22,000 - - - - - -
Wastewater Generator Condition Assessment,Load testing and -
52,000 8,000 8,000 9,000 9,000 9,000 9,000
-
possible repairs
Wastewater Manhole Rehabilitation(Port Burwell collection -
63,000 10,000 10,000 10,000 11,000 11,000 11,000
-
system)
Wastewater treatment plant process assessment and concrete - -
159,000 25,000 26,000 26,000 27,000 27,000 28,000
-
structural integrity review along with potential repairs
Wastewater equipment(pumps,blowers,electric motors) -
263,000 42,000 43,000 43,000 44,000 45,000 46,000
-
replacement to high efficient
Pump rebuilds 35,000 - - - - - - - - - - -
Air release valves-PS 2&5&Forcemains 15,500 - - - - - - - - - - -
Air blower rebuilds 4,800 - - - - - - - - - - -
Septage Building Railing 4,000 - - - - - - - - - - -
Computer Upgrades 4,000 - - - - - - - - - - -
Studies
Wastewater Rate Study&Financial Plan 5,775 - - - - - - - - - - -
Total Capital Expenditures 69,075 672,000 103,000 105,000 107,000 132,000 111,000 114,000 - - - -
Capital Financing
Provincial/Federal Grants -
Development Charges Reserve Fund - - - - - - - - - - - -
Non-Growth Related Debenture Requirements - - - - - - - - - - - -
Growth Related Debenture Requirements - - - - - - - - - - - -
Operating Contributions - - - - - - - - - - - -
Lifecycle Reserve Fund - - - - - - - - - - - -
Transfer from Wastewater Capital&Rate Stabilization 69,075 672,000 103,000 105,000 107,000 132,000 111,000 114,000 - - - -
Transfer from Wastewater Capital Reserve - - - - - - - - - - -
Total Capital Financing 69,075 672,000 103,000 105,000 107,000 132,000 111,000 114,000 - - - -
A
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5. OVERVIEW OF EXPENDITURES
AND REVENUES
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5-1
5. OVERVIEW OF EXPENDITURES AND REVENUES
5.1 Water Operating Expenditures
In this report, the forecasted water budget figures (2014-2024) are based on the 2013 and 2014
Operating Budgets. The costs for each component of the operating budget have been reviewed
with staff to establish forecast inflationary adjustments. The expenditures have been assumed
to increase at a rate of 2.0% annually. Water supply of the Bayham System is purchased from
the Port Burwell Secondary system, which draws its water from the Elgin Primary Water
System. The forecast for this system is approximately 5% annually based on the most recently
approved rate forecast for the secondary system. Also included are any debenture expenditures
and contributions to reserve funds.
5.2 Water Operating Revenues
The Municipality has miscellaneous revenue sources in the Bayham system to help contribute
towards operating expenditures. Some of these miscellaneous revenues, including water
connection charges, water meter charges and penalties & interest have been inflated by 2.0%
for each year of the forecast period. However, the Richmond system has a lack of revenues
other than the flat monthly rates. Table 5-1 provides for the operating budget for the Bayham
water system. Table 5-2 provides for the operating budget for the Richmond water system.
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Table 5-1
Municipality of Bayham
Water Service-Bayham
Operating Budget Forecast
Inflated$
Budget Forecast
Description 2014 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
Expenditures
Operating Costs - - - - - - - - -
Salaries&Wages 50,291 51,300 52,300 53,300 54,400 55,500 56,600 57,700 58,900 60,100 61,300
Statutory Benefits 4,470 4,600 4,700 4,800 4,900 5,000 5,100 5,200 5,300 5,400 5,500
Non Statutory Benefits 9,751 9,900 10,100 10,300 10,500 10,700 10,900 11,100 11,300 11,500 11,700
Supplies 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800
Tools and Equipment 500 500 500 500 500 500 500 500 500 500 500
Lab Fees 5,000 5,100 5,200 5,300 5,400 5,500 5,600 5,700 5,800 5,900 6,000
Utilities 2,075 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100
Advertising 206 200 200 200 200 200 200 200 200 200 200
Association Fees 550 600 600 600 600 600 600 600 600 600 600
Auditing Fees 3,400 3,500 3,600 3,700 3,800 3,900 4,000 4,100 4,200 4,300 4,400
System Maintenance 6,550 6,700 6,800 6,900 7,000 7,100 7,200 7,300 7,400 7,500 7,700
Vehicle Maintenance 700 700 700 700 700 700 700 700 700 700 700
Insurance 706 700 700 700 700 700 700 700 700 700 700
Legal Fees - - - - - - - - - - -
Truck water distribution 2,850 2,900 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800
Training&Education 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900
Licenses 150 200 200 200 200 200 200 200 200 200 200
Conference&Seminars 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Telephone&Internet 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Sundry 100 100 100 100 100 100 100 100 100 100 100
Water Quality Management 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800 3,900 4,000
Primary&Secondary Water System Costs 366,016 390,072 411,626 433,532 455,790 478,400 501,363 524,677 540,262 556,261 572,684
Administrative Overhead 5,400 5,500 5,600 5,700 5,800 5,900 6,000 6,100 6,200 6,300 6,400
Utility Adjustments 4,000 4,100 4,200 4,300 4,400 4,500 4,600 4,700 4,800 4,900 5,000
Sub Total Operating 473,415 499,572 523,126 547,032 571,390 596,100 621,163 646,577 664,362 682,561 701,284
Capital-Related
Existing Debt(Principal)-Growth Related -
Existing Debt(Interest)-Growth Related -
Existing Debt(Principal) -Non-Growth Related 32,729 34,085 35,497 36,967 38,498 40,093 41,754 30,014
Existing Debt(Interest) -Non-Growth Related 11,318 9,963 8,551 7,081 5,550 3,955 2,294 590
New Non-Growth Related Debt(Principal) - - - - - - - - - -
New Non-Growth Related Debt(Interest) - - - - - - - - - -
Transfer to Capital - - - - - - - - - - -
Transfer to Capital Reserve 87,000 47,200 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Transfer to Rate Stabilization Reserve
Sub Total Capital Related 131,048 91,248 94,048 94,048 94,048 94,048 94,048 80,604 50,000 50,000 50,000
Total Expenditures 604,463 590,819 617,174 641,080 665,438 690,148 715,211 727,181 714,362 732,561 751,284
Revenues
Base Charge 106,002 108,695 112,037 115,470 118,995 122,615 126,332 130,149 134,068 138,092 142,223
Other Revenue-Landowner Debenture Recovery 41,147
Water Meters 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500
Water Connect Charges 5,585 5,700 5,800 5,900 6,000 6,100 6,200 6,300 6,400 6,500 6,600
Penalties and Interest 8,000 8,200 8,400 8,600 8,800 9,000 9,200 9,400 9,600 9,800 10,000
Contributions from Development Charges Reserve Fund - - - - - - - - - - -
Contributions from Reserves/Reserve Funds - - - - - - - - - - -
Total Operating Revenue 163,234 125,195 128,937 132,770 136,695 140,715 144,832 149,049 153,368 157,792 162,323
Water Billing Recovery-Operating 441,229 465,625 488,236 508,310 528,743 549,433 570,378 578,131 560,994 574,769 588,961
Lifecycle Reserve Contribution($) 5,600 15,400 26,200 38,900 53,400 83,200 140,000 168,200 198,400
Water Billing Recovery-Total 441,229 465,625 493,836 523,710 554,943 588,333 623,778 661,331 700,994 742,969 787,361
01
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Table 5-2
Municipality of Bayham
Water Service-Richmond
Operating Budget Forecast
Inflated$
Budget Forecast
Description 2014 2015 I 2016 I 2017 I 2018 I 2019 I 2020 1 2021 I 2022 I 2023 I 2024
Expenditures
Operating Costs - - - - - - - - -
Salaries&Wages 19,868 20,300 20,700 21,100 21,500 21,900 22,300 22,700 23,200 23,700 24,200
Statutory Benefits 1,766 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800
Non Statutory Benefits 3,852 3,900 4,000 4,100 4,200 4,300 4,400 4,500 4,600 4,700 4,800
Supplies 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800 3,900 4,000
Tools and Equipment 150 200 200 200 200 200 200 200 200 200 200
Lab Fees 3,500 3,600 3,700 3,800 3,900 4,000 4,100 4,200 4,300 4,400 4,500
Utilities 4,000 4,100 4,200 4,300 4,400 4,500 4,600 4,700 4,800 4,900 5,000
Property Taxes 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Advertising 75 100 100 100 100 100 100 100 100 100 100
Association Fees 81 100 100 100 100 100 100 100 100 100 100
Auditing Fees - - - - - - - - - - -
Water Quality Managemtn 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
System Maintenance 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Vehicle Maintenance 331 300 300 300 300 300 300 300 300 300 300
Richmond Truck 2,750 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700
Training&Education 725 700 700 700 700 700 700 700 700 700 700
Licences 345 400 400 400 400 400 400 400 400 400 400
Conferences&Seminars 400 400 400 400 400 400 400 400 400 400 400
Legal Fees - - - - - - - - - - -
Richmond Water Amtelecom 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200
Administrative Overhead - - - 1 - - - - - - - -
Sub Total Operating 48,043 49,000 49,900 1 50,800 ' 51,700 52,600 1 53,500 54,400 55,400 56,400 57,400
Capital-Related
Existing Debt(Principal)-Growth Related -
Existing Debt(Interest)-Growth Related -
New Growth Related Debt(Principal) - - - - - - - - - -
New Growth Related Debt(Interest) - - - - - - - - - -
Existing Debt(Principal) -Non-Growth Related
Existing Debt(Interest) -Non-Growth Related
New Non-Growth Related Debt(Principal) - 938 1,687 2,172 2,248 2,326 2,408 2,492 15,962 39,877
New Non-Growth Related Debt(Interest) - 385 646 762 686 607 526 442 5,850 14,881
Transfer to Capital - - - - - - - - - - -
Transfer to Capital Reserve 293 4,000 7,000 11,000 16,000 22,000 28,500 36,000 44,000 34,000 11,000
Transfer to Rate Stabilization Reserve
Sub Total Capital Related 293 4,000 8,323 13,333 18,934 24,934 31,434 38,934 46,934 55,812 65,758
Total Expenditures 48,336 53,000 58,223 64,133 70,634 77,534 84,934 93,334 102,334 112,212 123,158
Revenues
Base Charge - - - - - - - - - - -
Other Revenue - - - - - - - - -
Contributions from Development Charges Reserve Fund - - - - - - - - - - -
Contributions from Reserves/Reserve Funds - - - - - - - - - - -
Total Operating Revenue - - - - - - - - - - -
Water Billing Recovery-Operating 48,336 53,000 58,223 64,133 70,634 77,534 84,934 93,334 102,334 112,212 123,158
Lifecycle Reserve Contribution($)
Water Billing Recovery-Total 48,336 53,000 58,223 64,133 70,634 77,534 84,934 93,334 102,334 112,212 123,158
V7
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5-4
5.3 Wastewater Operating Expenditures
The Bayham wastewater system operating expenditures have been adjusted over the forecast
period by an annual inflationary factor of 2.0%. Also included are contributions to the capital &
rate stabilization reserve and a lifecycle reserve fund.
5.4 Wastewater Operating Revenues
The operating revenue for the wastewater program is made up of only flat rate revenues
(discussed further in Chapter 6). As such, it is assumed that the full cost of operating is to be
recovered through rates and to increase at 5% annually over the forecast period. Table 5-3
outlines the operating budget for the Bayham wastewater system.
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Table 5-3
Municipality of Bayham
Wastewater Services
Operating Budget Forecast
Inflated$
Budget Forecast
Description 2014 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
Expenditures
Operating Costs
Salaries&Wages 178,193 181,800 185,400 189,100 192,900 196,800 200,700 204,700 208,800 213,000 217,300
Statutory Benefits 15,838 16,200 16,500 16,800 17,100 17,400 17,700 18,100 18,500 18,900 19,300
Non Statutory Benefits 34,551 35,200 35,900 36,600 37,300 38,000 38,800 39,600 40,400 41,200 42,000
Clothing Allowance 633 600 600 600 600 600 600 600 600 600 600
Advertising 200 200 200 200 200 200 200 200 200 200 200
Association&Mem Fees 200 200 200 200 200 200 200 200 200 200 200
Auditing Fees 3,400 3,500 3,600 3,700 3,800 3,900 4,000 4,100 4,200 4,300 4,400
Insurance 5,908 6,000 6,100 6,200 6,300 6,400 6,500 6,600 6,700 6,800 6,900
Training&Education 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300
Licenses 150 200 200 200 200 200 200 200 200 200 200
Conference&Seminars 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500
Travel 250 300 300 300 300 300 300 300 300 300 300
Telephone&Internet 3,500 3,600 3,700 3,800 3,900 4,000 4,100 4,200 4,300 4,400 4,500
Sundry 112 100 100 100 100 100 100 100 100 100 100
Administrative Overhead 9,500 9,700 9,900 10,100 10,300 10,500 10,700 10,900 11,100 11,300 11,500
Expenditure-Treatment Plant - - - - - - - - - -
Lab Fees 9,800 10,000 10,200 10,400 10,600 10,800 11,000 11,200 11,400 11,600 11,800
Chemicals 7,800 8,000 8,200 8,400 8,600 8,800 9,000 9,200 9,400 9,600 9,800
Utilities Plant 64,000 65,300 66,600 67,900 69,300 70,700 72,100 73,500 75,000 76,500 78,000
Supplies-Plant 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600
Property Taxes 4,683 4,800 4,900 5,000 5,100 5,200 5,300 5,400 5,500 5,600 5,700
Building/Plant Maintenance 7,500 7,700 7,900 8,100 8,300 8,500 8,700 8,900 9,100 9,300 9,500
Equipment Maintenance-Plant 13,000 13,300 13,600 13,900 14,200 14,500 14,800 15,100 15,400 15,700 16,000
Grounds Maintenance 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500
Sludge Haulage/Disposal 18,750 19,100 19,500 19,900 20,300 20,700 21,100 21,500 21,900 22,300 22,700
Odour Control(septage) - - - - - - - - - - -
Expenditures-Collection System - - - - - - - - - -
Truck 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800 3,900 4,000
Supplies-Collection 900 900 900 900 900 900 900 900 900 900 900
Utilities-Collection System 27,000 27,500 28,100 28,700 29,300 29,900 30,500 31,100 31,700 32,300 32,900
Odour Control 24,000 24,500 25,000 25,500 26,000 26,500 27,000 27,500 28,100 28,700 29,300
System Maintenance 23,000 23,500 24,000 24,500 25,000 25,500 26,000 26,500 27,000 27,500 28,100
Vehicle Maintenance 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Sub Total Operating 465,768 475,400 485,100 494,900 504,900 515,000 525,200 535,600 546,300 557,100 568,100
Capital-Related
Existing Debt(Principal)-Growth Related
Existing Debt(Interest)-Growth Related
New Growth Related Debt(Principal) - - - - - - - - - -
New Growth Related Debt(Interest) - - - - - - - - - -
Existing Debt(Principal)-Non-Growth Related
Existing Debt(Interest)-Non-Growth Related
New Non-Growth Related Debt(Principal) - - - - - - - - -New Non-Growth Related Debt(Interest) - - - - - - - - - -
Transfer to Capital - - - - - - - - - - -
Transfer to Rate Stabilization Reserve
Transfer to Capital&Rate Stabilization Reserve 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100
Transfer to Capital Reserve -
Sub Total Capital Related 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100
Total Expenditures 650,868 660,500 670,200 680,000 690,000 700,100 710,300 720,700 731,400 742,200 753,200
Revenues
Base Charge - - - - - - - - - - -
Other Revenue - - - - - - - - -
Contributions from Development Charges Reserve Fund - - - - - - - - - - -
Contributions from Reserves/Reserve Funds - - - - - - - - - - -
Total Operating Revenue - - - - - - - - - - -
Wastewater Billing Recovery-Operating 650,868 660,500 670,200 680,000 690,000 700,100 710,300 720,700 731,400 742,200 753,200
Lifecycle Reserve Contribution($) 25,000 55,000 85,000 120,000 155,000 195,000 240,000 285,000 335,000 390,000
Wastewater Billing Recovery-Total 650,868 685,500 725,200 765,000 810,000 855,100 905,300 960,700 1,016,400 1,077,200 1,143,200
Cin
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6. PRICING STRUCTURES
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6-1
6. PRICING STRUCTURES
6.1 Introduction
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 schematic below provides a simplified illustration of the
rate calculation for water.
"ANNUAL COSTS"
Operations
- Staff costs
- Distribution costs
- Maintenance
- Meter reading and billing, etc.
Total Costs _* Rate
Volume
Capital Related
- Past debt
- Contributions to reserves
- Contribution to capital
These operating and capital expenditures will vary over time. Examples of factors which will
affect the expenditures over time are provided below
Operations
• Inflation;
• Increased maintenance as system ages; and
• Changes to Provincial legislation.
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Capital Related
• New capital will be built as areas expand;
• Replacement capital needed as system ages; and
• Financing of capital costs are a function of policy regarding reserves and direct financing
from rates (pay as you go), debt and user pay methods (development charges,
Municipal Act).
6.2 Alternative Pricing Structures
Throughout Ontario, and as well, Canada, the use of pricing mechanisms varies between
municipalities. The use of a particular form of pricing depends upon numerous factors, including
Council preference, administrative structure, surplus/deficit system capacities, economic/
demographic conditions, to name a few.
Municipalities within Ontario have two basic forms of collecting revenues for water purposes,
those being through incorporation of the costs within the tax rate charged on property
assessment and/or through the establishment of a specific water rate billed to the customer.
Within the rate methods, there are five basic rate structures employed along with other
variations:
• Flat Rate (non-metered customers);
• Constant Rate;
• Declining Block Rate;
• Increasing (or Inverted) Block Rate;
• Hump Back Block Rate; and
• Base Charges.
The definitions and general application of the various methods are as follows:
Property Assessment: This method incorporates the total costs of providing water into
the general requisition or the assessment base of the Municipality. This form of
collection is a "wealth tax", as payment increases directly with the value of property
owned and bears no necessary relationship to actual consumption. This form is easy to
administer as the costs to be recovered are incorporated in the calculation for all general
services, normally collected through property taxes.
Flat Rate: This rate is a constant charge applicable to all customers served. The
charge is calculated by dividing the total number of user households and other entities
(e.g. businesses) into the costs to be recovered. This method does not recognize
differences in actual consumption but provides for a uniform spreading of costs across
all users. Some municipalities define users into different classes of similar consumption
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patterns, that is a commercial user, residential user and industrial user, and charge a flat
rate by class. Each user is then billed on a periodic basis. No meters are required to
facilitate this method, but an accurate estimate of the number of users is required. This
method ensures set revenue for the collection period but is not sensitive to consumption,
hence may cause a shortfall or surplus of revenues collected.
Constant Rate: This rate is a volume-based rate, in which the consumer pays the same
price per unit consumed, regardless of the volume. The price per unit is calculated by
dividing the total cost of the service by the total volume used by total consumers. The
bill to the consumer climbs uniformly as the consumption increases. This form of rate
requires the use of meters to record the volume consumed by each user. This method
closely aligns the revenue recovery with consumption. Revenue collected varies directly
with the consumption volume.
Declining Block Rates: This rate structure charges a successively lower price for set
volumes, as consumption increases through a series of "blocks". That is to say that
within set volume ranges, or blocks, the charge per unit is set at one rate. Within the
next volume range the charge per unit decreases to lower rate, and so on. Typically, the
first, or first and second blocks cover residential and light commercial uses. Subsequent
blocks normally are used for heavier commercial and industrial uses. This rate structure
requires the use of meters to record the volume consumed by each type of user. This
method requires the collection and analysis of consumption patterns by user
classification to establish rates at a level which does not over or under collect revenue
from rate payers.
Increasing or Inverted Block Rates: The increasing block rate works essentially the
same way as the declining block rate, except that the price of water in successive blocks
increases rather than declines. Under this method the consumer's bill rises faster with
higher volumes used. This rate structure also requires the use of meters to record the
volume consumed by each user. This method requires, as with the declining block
structure, the collection and analysis of consumption patterns by user classification to
establish rates at a level which does not over or under collect from rate payers.
The Hump Back Rate: The hump back rate is a combination of an increasing block rate
and the declining block rate. Under this method the consumer's bill rises with higher
volumes used up to a certain level and then begins to fall for volumes in excess of levels
set for the increasing black rate.
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6.3 Assessment of Alternative Pricing Structures
The adoption by a Municipality or utility of any one particular pricing structure is normally a
function of a variety of administrative, social, demographic and financial factors. The number of
factors and the weighting each particular factor receives can vary between municipalities. The
following is a review of some of the more prevalent factors:
Cost Recovery
Cost recovery is a prime factor in establishing a particular pricing structure. Costs can be
loosely defined into different categories: operations, maintenance, capital, financing and
administration. These costs often vary between municipalities and even within a municipality,
based on consumption patterns, infrastructure age, economic growth, etc.
The pricing alternatives defined earlier can all achieve the cost recovery goal, but some do so
more precisely than others. Fixed pricing structures, such as Property Assessment and Flat
Rate, are established on the value of property or on the number of units present in the
municipality, but do not adjust in accordance with consumption. Thus, if actual consumption for
the year is greater than projected, the municipality incurs a higher cost of production, but the
revenue base remains static (since it was determined at the beginning of the year), thus
potentially providing a funding shortfall. Conversely, if the consumption level declines below
projections, fixed pricing structures will produce more revenue than actual costs incurred.
The other pricing methods (declining block, constant rate, increasing block) are consumption
based and generally will generate revenues in proportion to actual consumption.
Administration
Administration is defined herein as the staffing, equipment and supplies required to support the
undertaking of a particular pricing strategy. This factor not only addresses the physical tangible
requirements to support the collection of the revenues, but also the intangible requirements,
such as policy development.
The easiest pricing structure to support is the Property Assessment structure. As municipalities
undertake the process of calculating property tax bills and the collection process for their
general services, the incorporation of the water costs into this calculation would have virtually no
impact on the administrative process and structure.
The Flat Rate pricing structure is relatively easy to administer as well. It is normally calculated
to collect a set amount, either on a monthly, quarterly, semi annual or annual basis and is billed
directly to the customer. The impact on administration centres mostly on the accounts
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receivable or billing area of the municipality, but normally requires minor additional staff or
operating costs to undertake.
The three remaining methods, those being Increasing Block Rate, Constant Rate and Declining
Block Rate, have a more dramatic effect on administration. These methods are dependent
upon actual consumption and hence involve a major structure in place to administer. First,
meters must be installed in all existing units in the municipality and units to be subsequently
built must be required to include these meters. Second, meter readings must be undertaken
periodically. Hence staff must be available for this purpose or a service contract must be
negotiated. Third, the billings process must be expanded to accommodate this process. Billing
must be done per a defined period, requiring staff to produce the bills. Lastly, either through
increased staffing or by service contract, an annual maintenance program must be set up to
ensure meters are working effectively in recording consumed volumes.
The benefit derived from the installation of meters is that information on consumption patterns
becomes available. This information provides benefit to administration in calculating rates
which will ensure revenue recovery. Additionally, when planning what services are to be
constructed in future years, the municipality or utility has documented consumption patterns
distinctive to its own situation, which can be used to project sizing of growth-related works.
Equity
Equity is always a consideration in the establishment of pricing structures but its definition can
vary depending on a municipality's circumstances and based on the subjective interpretation of
those involved. For example: is the price charged to a particular class of rate payer consistent
with those of a similar class in surrounding municipalities; through the pricing structure does one
class of rate payer pay more than another class; should one pay based on ability to pay, or on
the basis that a unit of water costs the same to supply no matter who consumes it; etc. There
are many interpretations. Equity therefore must be viewed broadly in light of many factors as
part of achieving what is best for the municipality as a whole.
Conservation
In today's society, conservation of natural resources is increasingly being more highly valued.
Controversy continuously focuses on the preservation of non-renewable resources and on the
proper management of renewable resources. Conservation is also a concept which applies to a
municipality facing physical limitations in the amount of water which can be supplied to an area.
As well, financial constraints can encourage conservation in a municipality where the cost of
providing each additional unit is increasing.
Pricing structures such as property assessment and flat rate do not, in themselves, encourage
conservation. In fact, depending on the price which is charged, they may even encourage
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resource "squandering," either because consumers, without the price discipline, consume water
at will, or the customer wants to get his money's worth and hence adopts more liberal
consumption patterns. The fundamental reason for this is that the price paid for the service
bears no direct relationship to the volume consumed and hence is viewed as a "tax," instead of
being viewed as the price of a purchased commodity.
The Declining Block Rate provides a decreasing incentive towards conservation. By creating
awareness of volumes consumed, the consumer can reduce his total costs by restricting
consumption; however the incentive lessens as more water is consumed, because the marginal
cost per unit declines as the consumer enters the next block pricing range. Similarly, those
whose consumption level is at the top end of a block have reduced incentive to reduce
consumption.
The Constant Rate structure presents the customer with a linear relationship between
consumption and the cost thereof. As the consumer pays a fixed cost per unit, his bill will vary
directly with the amount consumed. This method presents tangible incentive for consumers to
conserve water. As metering provides direct feedback as to usage patterns and the consumer
has direct control over the total amount paid for the commodity, the consumer is encouraged to
use only those volumes that are reasonably required.
The Inverted Block method presents the most effective pricing method for encouraging
conservation. Through this method, the price per unit consumed increases as total volumes
consumed grow. The consumer becomes aware of consumption through metering with the
charges increasing dramatically with usage. Hence, there normally is awareness that exercising
control over usage can produce significant savings. This method not only encourages
conservation methods, but may also penalize legitimate high volume users if not properly
structured.
Figure 6-1 provides a schematic representation of the various rate structures (note property tax
as a basis for revenue recovery has not been presented for comparison, as the proportion of
taxes paid varies in direct proportion to the market value of the property). The graphs on the
left-hand side of the figure present the cost per unit for each additional amount of water
consumed. The right-hand side of the figure presents the impact on the customer's bill as the
volume of water increases. The schematic is summarized below for each rate structure.
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FIGURE 6-1
WATER RATE PRICING CONCEPTS
"Rate Structure" "Impact on Individual Customer"
Flat Rate:
a-)
E 2'
D 0
L
a5 U
0
N m
0 m
0
0
(—
Volume Volume
Constant Rate:
0
C
w
D
L
m U
0-
E
o
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0
H
Volume Volume
Declining Block Rate:
a->
0)
E
D L
U
0_ —
CO
0
O o
1—
Volume
Volume Volume
Increasing Block Rate:
a-)
2'
E as
Cr) U
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0-
�, E
o
O o
Volume Volume
Hump Back Rate:
a>
E m
a� U
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r-------
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Volume Volume
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IMPACT ON CUSTOMER
COST PER UNIT AS BILL AS VOLUME
RATE VOLUME CONSUMPTION CONSUMPTION
STRUCTURE _ INCREASES INCREASES
Flat Rate Cost per unit decreases as Bill remains the same no
more volume consumed matter how much volume is
consumed
Constant Rate Cost per unit remains the Bill increases in direct
same proportion to consumption
Declining Block Cost per unit decreases as Bill increases at a slower
threshold targets are achieved rate as volumes increases
Increasing Block Cost per unit increases as Bill increases at a faster rate
threshold targets are achieved as volumes increase
Hump Back Rate Combination of an increasing Bill increases ata faster rate
block at the lower consumption at the lower consumption
volumes and then converts to a amounts and then slows as
declining block for the high volumes increase
6.4 Rate Structures in Ontario
In a past survey of over 170 municipalities (approximately half of the municipalities who provide
water and/or sewer), all forms of rate structures are in use by Ontario municipalities. The most
common rate structure is the constant rate (for metered municipalities). Most municipalities
(approximately 92%) who have volume rate structures also impose a base monthly charge.
Historically, the development of a base charge often reflected either the recovery of meter
reading/billing/collection costs, plus administration or those costs plus certain fixed costs (such
as capital contributions or reserve contributions). More recently, many municipalities have
started to establish base charges based on ensuring a secure portion of the revenue stream
which does not vary with volume consumption. Selection of the quantum of the base charge is
a matter of policy selected by individual municipalities.
6.5 Recommended Rate Structures
The Bayham water system presently uses a monthly base charge along with a consumption
charge based on water volumes. The present rate structure is provided below:
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2014-Monthly Water Billing Rates
Base Charge-Bayham System
$ 11.70 per Customer
Volume Charge-Bayham System
$ 2.82 per m3
The Richmond water system presently uses a flat monthly rate, as provided below:
2014-Monthly Water Billing Rates
Rat Rate-Richmond System
$ 76.00 per Customer
The Bayham wastewater system presently uses a flat monthly rate, as provided below:
2014-Monthly Wastewater Billing Rates
Rat Rate
$ 44.24 per Customer
The use of the base charge and a volume based charge for water and a flat rate for wastewater
is recommended to be continued for the Bayham system. As for the Richmond system, the use
of a flat rate for water is recommended to be continued. The Bayham water rates encourage
conservation and provide incentive to maintain water use at reasonable levels. Although this
structure would be beneficial for the Richmond water system, these customers are not presently
on meters and hence must use a flat rate structure.
Currently, not all wastewater customers are metered for water services and therefore a flat rate
structure is required to be continued. The following table 6-2 depicts the base charge forecast
for the Bayham system:
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Table 6-2
Municipality of Bayham
Base Charge-Bayham Water System
Water 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Existing 755 755 755 755 755 755 755 755 755 755 755
New - 4 12 20 28 36 44 52 60 68 76
Subtotal Customers 755 759 767 775 783 _ 791 799 807 815 823 831
Monthly Base Charge $11.70 $11.93 $12.17 $12.42 $12.66 $12.92 $13.18 $13.44 $13.71 $13.98 _ $14.26
Annual Base Charge $140.40 $143.21 $146.07 $148.99 $151.97 $155.01 $158.11 $161.28 $164.50 $167.79 $171.15
Total Annual Revenue $106,002 $108,695 $112,037 $115,470 $118,995 $122,615 $126,332 $130,149 $134,068 $138,092 $142,223
9)
0
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7. ANALYSIS OF WATER AND WASTEWATER
RATES AND POLICY MATTERS
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7. ANALYSIS OF WATER AND WASTEWATER RATES
AND POLICY MATTERS
7.1 Introduction
To summarize the analysis undertaken thus far, Chapter 2 reviewed capital-related issues and
responds to the provincial directives to maintain and upgrade infrastructure to required levels.
Chapter 4 provided a review of capital financing options to which lifecycle reserve contributions
will be the predominant basis for financing future capital replacement. Chapter 5 established
the 10-year operating forecast of expenditures including an annual lifecycle capital replacement
reserve contribution. Non-rate revenues (including base charge revenues) to assist in offsetting
the charges for volumetric rates were also identified in Chapter 5. The base charge revenues
are to ensure that fixed costs are recovered regardless of the amount of volume used by
customers. This chapter will provide for the calculation of the volume rates over the forecast
period. These calculations will be based on the net operating expenditures (the variable costs)
provided in Chapter 5, divided by the water consumption forecast and wastewater volumes
provided in Section 1.7.
7.2 Water Rates
Based on the discussion of rate structures provided in section 6.5 and the recommendation to
continue with the present structures, the rates are calculated by taking the net recoverable
amounts from Table 5-1 and 5-2 (the product of total expenditures plus lifecycle costs less non-
rate revenues and, for the Bayham's water system, deduct the base charge amounts provided
in section 6.5) and completes the calculation by dividing them by the volumes resulting in the
forested rates. For the Richmond system, the calculations provide for a calculated flat rate.
The volume rates are presented in Table 7-1 and 7-2 for Bayham and Richmond respectively.
Detailed calculations of the volume rates are provided in Appendix C. A summary of the
recommended base charge and volume rates are as follows:
Table 7-1
Average Annual Residential Water Bill(Bayham•based on annual comsumption of 198 m3)
Description 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Base Monthly Charge $ 11.70 $ 11.93 $ 12.17 $ 12.42 $ 12.66 $ 12.92 $ 13.18 $ 13.44 $ 13.71 $ 13.98 $ 14.26
Annual Base Charge $ 140.40 $ 143.21 $ 146.07 $ 148.99 $ 151.97 $ 155.01 $ 158.11 $ 161.28 $ 164.50 $ 167.79 $ 171.15
Volume Charge per m3 $ 2.82 $ 2.97 $ 3.11 $ 3.27 $ 3.43 $ 3.60 $ 3.78 $ 3.97 $ 4.17 $ 4.38 $ 4.60
Annual Volume(m3) 198 198 198 198 198 198 198 198 198 198 198
Annual Voume Charge 558.36 587.30 616.66 647.49 679.39 713.28 748.99 786.52 825.84 867.12 910.42
Total Annual Water Bill $ 698.76 $ 730.50 $ 762.73 $ 796.49 $ 831.36 $ 868.29 $ 907.10 $ 947.80 $ 990.34 $1,034.91 $1,081.57
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The Bayham rates are forecasted to increase at 5% annually. However, the Richmond system
has a lack of revenues (other than rates) and reserves to help fund its own operating and capital
expenditures, which results in a 10% yearly increase on the flat rate in order to be sustainable
as seen below in Table 7-2.
Table 7-2
Average Annual Residential Water Bill(Richmond-based on annual comsumption of 198 m3)
Description 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Monthly Flat Charge $ 76.00 $ 83.33 $ 91.55 $ 100.84 $ 111.06 $ 121.91 $ 133.54 $ 146.75 $ 160.90 $ 176.43 $ 193.64
Annual Flat Charge $ 912.00 $1,000.00 $1,098.54 $1,210.05 $1,332.71 $1,462.90 $1,602.53 $1,761.02 $1,930.83 $2,117.20 $2,323.73
Volume Charge per m3 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Annual Volume(m3) 198 198 198 198 198 198 198 198 198 198 198
Annual Voume Charge
Total Annual Water Bill $ 912.00 $1,000.00 $1,098.54 $1,210.05 $1,332.71 $1,462.90 $1,602.53 $1,761.02 $1,930.83 $2,117.20 $2,323.73
7.3 Wastewater Rates
The recommendation to continue with the present structure for wastewater results in the rates
as calculated below in Table 7-3. The calculation of the rates takes the net recoverable amounts
from Table 5-3 (the product of total expenditures plus lifecycle transfers to reserves) and
completes the calculation by dividing them by the customers, resulting in a calculated flat rate.
Detailed calculations are provided in Appendix D.
The following summarizes the recommended flat rates for wastewater:
Table 7-3
Average Annual Residential Wastewater Bill(based on annual volume of 198 m3)
Description 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Monthly Flat Charge $ 44.24 $ 46.41 $ 48.70 $ 50.96 $ 53.53 $ 56.06 $ 58.89 $ 62.01 $ 65.10 $ 68.47 $ 72.12
Annual Flat Charge $ 530.88 $ 556.86 $ 584.37 $ 611.51 $ 642.35 $ 672.78 $ 706.71 $ 744.15 $ 781.25 $ 821.66 $ 865.40
Volume Charge per m3 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Annual Volume(m3) 198 198 198 198 198 198 198 198 198 198 198
Annual Voume Charge
Total Annual Wastewater Bill $ 530.88 $ 556.86 $ 584.37 $ 611.51 $ 642.35 $ 672.78 $ 706.71 $ 744.15 $ 781.25 $ 821.66 $ 865.40
7.4 Alternate Calculation for the Bayham/Richmond Water Systems
We have identified that the lack of revenues and reserves to the Richmond system has caused
the Flat rate to increase substantially by 10% annually, which makes it unfeasible. To rectify
this, we have combined the operating and capital for both the Bayham and Richmond systems
in order to utilize the reserves that were only allocated for the Bayham system and redirect it to
Richmond. This resulted in a sustainable charge for Richmond customers at a moderate annual
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increase of 5%. The following summary (Table 7-4) provides the annual water bill for when both
the operating and capital budgets of Bayham and Richmond are combined (detailed calculations
are provided in Appendix E):
Table 7-4
Bayham&Richmond(Using Combined Operating and Capital)
Average Annual Residential Water Bill(Bayham-based on annual comsumption of 198 m3)
Description 2014 2015 2016 2017 2018 2019 I 2020 2021 2022 2023 2024
Base Monthly Charge $ 11.70 $ 11.93 $ 12.17 $ 12.42 $ 12.66 $ 12.92 $ 13.18 $ 13.44 $ 13.71 $ 13.98 $ 14.26
Annual Base Charge $ 140.40 $ 143.21 $ 146.07 $ 148.99 $ 151.97 $ 155.01 $ 158.11 $ 161.28 $ 164.50 $ 167.79 $ 171.15
Volume Charge per m3 $ 2.82 $ 2.99 $ 3.17 $ 3.36 $ 3.56 $ 3.78 $ 4.00 $ 4.24 $ 4.50 $ 4.77 $ 5.06
Annual Volume(m3) 198 198 198 198 198 198 198 198 198 198 198
Annual Voume Charge 558.36 592.91 628.04 665.72 705.67 748.01 792.89 840.46 890.89 944.34 1,001.00
Total Annual Water Bill $ 698.76 $ 736.12 $ 774.11 $ 814.72 $ 857.64 $ 903.02 $ 951.00 $1,001.74 $1,055.39 $1,112.13 $1,172.15
Average Annual Residential Water Bill(Richmond-based on annual comsumption of 198 m3)
Description 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Monthly Flat Charge $ 76.00 $ 79.80 $ 83.79 $ 87.98 $ 92.38 $ 97.00 $ 101.85 $ 106.94 $ 112.29 $ 117.90 $ 123.80
Annual Flat Charge $ 912.00 $ 957.60 $1,005.48 $1,055.75 $1,108.54 $1,163.97 $1,222.17 $1,283.28 $1,347.44 $1,414.81 $1,485.55
Volume Charge per m3 $ - $ - $ - $ - $ - $ - $ - +$ - $ - $ - [$ -
Annual Volume(m3) 198 198 198 198 198 198 198 198 198 198[ 198
Annual Voume Charge -
- - - - - - - - - - �-
Total Annual Water Bill $ 912.00 $ 957.60 $1,005.48 1$1,055.75 $1,108.54 $1,163.97 $1,222.17 $1,283.28 $1,347.44 $1,414.81 $1,485.55
Combining both the operating and capital budget for Bayham and Richmond systems yields
more moderate increases to the annual rates forecasted as opposed to having the systems
separated. Although there is an increase for the Bayham system volume charge from 5% to 6%
per year, the resulting decrease in the Richmond flat charge from 10% to 5% per year creates a
comparative advantage for the systems as a whole.
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8. RECOMMENDATIONS
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8. RECOMMENDATIONS
As presented within this report, capital and operating expenditures have been identified and
forecasted over a ten-year period for water and wastewater services. In addition, a long-term
lifecycle plan has been provided consistent with the principles provided in SWSSA and the
Water Opportunities Act.
Based upon the foregoing, the following recommendations are identified for consideration by
Municipal Council:
1. That Council provide for the recovery of all water and wastewater costs through full cost
recovery rates.
2. That Council consider the Capital Plan for water and wastewater as provided in Tables
2-1 and 2-2 and the associated Capital Financing Plan as set out in Tables 4-1 and 4-2.
3. That Council approve the adoption of lifecycle reserve contributions for the replacement
of water and wastewater infrastructure, subject to the requirements of the Water
Opportunities Act.
4. That Council consider the combined rates structure for wastewater and water as
provided in Tables 7-3 and 7-4 respectively.
5. That Council consider the rates provided in Chapters 6 & 7 for the water and wastewater
systems.
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APPENDIX A
BAYHAM & RICHMOND WATER SYSTEM INVENTORY DATA
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A-1
Table A-1
Municipality of Bayham
Water Curb Stops,Hydrants,Valves,Meters
Annual Amount to
Year Estimated Replacement Replacement Years until be included
Item Location Capacity Installed Life Year Cost Replacement Lifecycle in 10 year
Contribution Forecast
Water Curb Stops
907-Curb Stops 2010 35 2045 176,386 31 7,690 -
908-Curb Stops 2010 35 2045 370,989 31 16,174 -
909-Dance Sewer 2008 35 2043 7,071 29 324 -
Water Hydrants
903-Hydrants 2010 35 2045 103,636 31 4,518 -
904-Hydrants 2010 35 2045 78,462 31 3,421 -
905-Hydrants 1977 35 2014 65,892 0 in capital budget 65,892
906-Hydrants 1972 35 2014 98,839 0 in capital budget 98,839
1005-5'0 Water Hydrant 2009 35 2044 20,436 30 912 -
1006-5'6 Water Hydrant 2009 35 2044 11,535 30 515 -
1007-6'0 Water Hydrant 2009 35 2044 104,908 30 4,684 -
1008-6'6 Water Hydrant 2009 35 2044 8,487 30 379 -
1009-7'0 Water Hydrants 2009 35 2044 4,290 30 192 -
1010-EMCO CORPORATION 2009 35 2044 4,240 30 189 -
Water Meters
934-Water Meters 2004 35 2039 111,799 25 5,726 -
935-Water Meters 2004 35 2039 74,533 25 3,818 -
Water Valves
912-12"Main Valves 1977 0 2014 3,591 0 in capital budget 3,591
913-12"Main Valves 1972 0 2014 5,387 0 in capital budget 5,387
914-10"Main Valves 2010 35 2045 36,702 31 1,600 -
915-10"Main Valves 2010 35 2045 47,120 31 2,054 -
916-10"Main Valves 1977 0 2014 7,785 0 in capital budget 7,785
917-10"Main Valves 1972 0 2014 11,677 0 in capital budget 11,677
918-8"Main Valves 2010 35 2045 21,817 31 951 -
919-8"Main Valves 2010 35 2045 38,547 31 1,681 -
920-8"Main Valves 1977 0 2014 4,935 0 in capital budget 4,935
921-8"Main Valves 1972 0 2014 7,403 0 in capital budget 7,403
922-6"Main Valves 2010 35 2045 48,732 31 2,125 -
923-6"Main Valves 2010 35 2045 113,473 31 4,947 -
924-6"Main Valves 1977 0 2014 11,057 0 in capital budget 11,057
925-6"Main Valves 1972 0 2014 16,346 0 in capital budget 16,346
926-4"Main Valves 1972 0 2014 753 0 in capital budget 753
927-2"Main Valves 1977 0 2014 1,390 0 in capital budget 1,390
928-2"Main Valves 1972 0 2014 1,946 0 in capital budget 1,946
929-6"Secondary Valves 1977 0 2014 12,019 0 in capital budget 12,019
930-6"Secondary Valves 1972 0 2014 17,788 0 in capital budget 17,788
931-1"Air Release Valves 1977 0 2014 463 0 in capital budget 463
932-1"Air Release Valves 1972 0 2014 232 0 in capital budget 232
933-4"Air Release Valves 1972 0 2014 1,564 0 in capital budget 1,564
1002-EMCO CORPORATION 2009 35 2044 124,279 30 5,549 -
1003-EMCO CORPORATION 2009 35 2044 12,796 30 571 -
1004-EMCO CORPORATION 2009 35 2044 10,879 30 486 -
'Total I I I I I I 1,800,184 I I 68,505 I 269,067
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx
A-2
Table A-2
Municipality of Bayham
Watermains
Total Main Annual Amount to
Year Estimated Replacement Years until be included
Street Installed Life Year Replacement Replacement Lifecycle in 10 year
Costs Contribution Forecast
936-Plank Road-Vienna/Burwell Loop 1977 100 2077 1,849,860 63 51,904 I -
937-Brown Side Road-Vienna/Burwell Loop 1977 100 2077 1,088,153 63 30,532 -
938-Vienna Line-Vienna/Burwell Loop 1977 100 2077 598,483 63 16,793 -
939-Centre Street-Vienna/Burwell Loop 1977 100 2077 108,813 63 3,053 -
940-Plank Road 1977 100 2077 1,142,559 63 32,058 -
941 -Mill Street 1977 100 2077 54,407 63 1,527 -
942-Soper Road 1977 100 2077 54,407 63 1,527 -
943-Centre Street 1977 100 2077 395,692 63 11,103 -
944-Fulton Street 1977 100 2077 346,233 63 9,715 -
945-Edison Drive 1977 100 2077 259,671 63 7,286 -
946-Queen Street 1977 100 2077 43,278 63 1,214 -
947-Oak Street 1977 100 2077 296,768 63 8,327 -
948-Chestnut Street 1977 100 2077 129,835 63 3,643 -
949-Ann Street 1977 100 2077 86,557 63 2,429 -
950-Elm Street 1977 100 2077 216,392 63 6,072 -
951 -Pine Street 1977 100 2077 86,557 63 2,429 -
952-Union Street 1977 100 2077 43,278 63 1,214 -
953-Snow Street 1977 100 2077 86,557 63 2,429 -
954-Union Street 1977 100 2077 43,278 63 1,214 -
955-King Street 1977 100 2077 86,557 63 2,429 -
956-Walnut Street 1977 100 2077 86,557 63 2,429 -
957-Chapel Street 1977 100 2077 389,511 63 10,929 -
958-Otter Street 1977 100 2077 43,278 63 1,214 -
959-Front Street 1977 100 2077 10,883 63 305 -
960-Robinson Street 1972 100 2072 593,536 58 17,383 -
961 -Hagerman Street 1972 100 2072 129,838 58 3,803 -
962-Strachan Street 2009 100 2109 42,273 95 997 -
963-Strachan Street 1972 100 2072 302,952 58 8,872 -
964-Erieus Street 2009 100 2109 42,273 95 997 -
965-Erieus Street 1972 100 2072 216,395 58 6,337 -
966-Shakespeare Street 2009 100 2109 42,273 95 997 -
967-Shakespeare Street 1972 100 2072 173,114 58 5,070 -
968-Victoria Street 2009 100 2109 42,273 95 997 -
969-Victoria Street 1972 100 2072 389,509 58 11,407 -
970-Pitt Street 1972 100 2072 86,557 58 2,535 -
971 -Pitt Street 2009 100 2109 42,273 95 997 -
972-Pitt Street 1972 100 2072 173,114 58 5,070 -
973-Beach Street 2009 100 2109 42,273 95 997 -
974-Beach Street 1972 100 2072 37,098 58 1,086 -
975-Wellington Street 1972 100 2072 247,309 58 7,243 -
976-Wellington Street 2009 100 2109 42,273 95 997 -
977-Wellington Street 1972 100 2072 43,282 58 1,268 -
978-Hannah Street 2009 100 2109 42,273 95 997 -
979-Hannah Street 1972 100 2072 43,282 58 1,268 -
980-William Street 1972 100 2072 37,098 58 1,086 -
981 -William Street 1972 100 2072 43,282 58 1,268 -
982-Elizabeth Street 1972 100 2072 43,282 58 1,268 -
983-Waterloo Street 1972 100 2072 18,546 58 543 -
984-Elizabeth Street 2009 100 2109 42,273 95 997 -
985-Elizabeth Street 1972 100 2072 173,114 58 5,070 -
986-Milton Street 2009 100 2109 42,273 95 997 -
987-Milton Street 1972 100 2072 43,282 58 1,268 -
988-County Road 42 1972 100 2072 259,670 58 7,605 -
989-Bridge Street 2009 100 2109 42,273 95 997 -
990-Bridge Street 1972 100 2072 489,672 58 14,341 -
991 -Chatham Street 2009 100 2109 42,273 95 997 -
992-Chatham Street 1972 100 2072 519,347 58 15,210 -
993-Homer Street 1972 100 2072 43,282 58 1,268 -
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx
A-3
Table A-2
Municipality of Bayham
Watermains
Total Main Annual Amount to
Year Estimated Replacement Years until be included
Street Installed Life Year Replacement Replacement Lifecycle in 10 year
Costs Contribution Forecast
994-Cowper Street 1972 100 2072 18,546 58 543 -
995-Addison Street 2009 100 2109 42,273 95 997 -
996-Addison Street 1972 100 2072 259,670 58 7,605 -
997-Libbye Street 1972 100 2072 129,838 58 3,803 -
998-Libbye Street 1972 100 2072 37,098 58 1,086 -
999-Faye Street 1972 100 2072 37,098 58 1,086 -
1000-Wellington Street 1972 100 2072 129,838 58 3,803 -
1001 -McCord Lane 1972 100 2072 74,195 58 2,173 -
Total 12,889,957 365,107 0
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx
A-4
Table A-3
Municipality of Bayham
Richmond Water System
Total Main Annual Amount to
Length Year Estimated Replacement Years until be included
Street (m)
Material Installed Life Year Replacement Replacement Lifecycle in 10 year
Costs Contribution Forecast
Richmond Distirbution System 215 PVC 1960 50 2014 787,500 0 in capital budget 787,500
Four Drilled Wells with Submersible Pumps 2013 70 2083 52,000 69 1,396 -
Treatment Equipment 2013 40 2053 170,000 39 6,319 -
Three distribution pumps 2013 40 2053 18,000 39 669 -
SCADA computer system 2013 40 2053 70,000 39 2,602 -
Treatment/Pump house building 1960 70 2030 30,000 16 2,210 -
1111111 ME 11111111E- 1
Total 215 1,127,500 13,196 787,500
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-26-14 with summaries.xlsx
APPENDIX B
BAYHAM WASTEWATER SYSTEM INVENTORY DATA
Watson&Associates Economists Ltd. H:IBayham12014 W&WW Rate Study and O.Reg Financial Plan\Report\Report.docx
B-1
Table B-1
Municipality of Bayham
Wastewater Facilities
Annual Amount to
Year Estimated Replacement Replacement Years until be included
Item Lifecycle
Installed Life Year Cost Replacement in 10 year
Contribution
Forecast
Sewage Treatment
281 -Sewage Treatment Plant Building 2001 75 2076 1,836,257 62 51,941 -
282-Sewage Treatment Plant Building 2010 25 2035 42,431 21 2,494 -
283-Sewage Treatment Plant Building 2001 25 2026 187,954 12 17,773 -
284-Sewage Treatment Plant Building 2010 20 2030 17,337 16 1,277 -
285-Sewage Treatment Plant Building 2001 20 2021 312,843 7 in capital budget 312,843
286-Sewage Treatment Plant Building 2001 20 2021 677,622 7 in capital budget 677,622
287-Sewage Treatment Plant Building 2001 50 2051 132,309 37 5,095 -
288-Sewage Treatment Plant Building 2001 25 2026 346,231 12 32,739 -
289-Pump Station 1 Building 2002 50 2052 399,790 38 15,120 -
290-Pump Station 1 Building 2002 20 2022 234,871 8 in capital budget 234,871
291 -Pump Station 2 Building 2002 50 2052 399,790 38 15,120 -
292-Pump Station 2 Building 2002 20 2022 234,871 8 in capital budget 234,871
293-Pump Station 3 Building 2002 50 2052 249,869 38 9,450 -
294-Pump Station 3 Building 2002 20 2022 146,795 8 in capital budget 146,795
295-Pump Station 4 Building 2002 50 2052 249,869 38 9,450 -
296-Pump Station 4 Building 2002 20 2022 146,795 8 in capital budget 146,795
297-Pump Station 5 Building 2002 50 2052 399,790 38 15,120 -
298-Pump Station 5 Building 2002 20 2022 234,871 8 in capital budget 234,871
299-Pump Station 6 Building 2002 50 2052 399,790 38 15,120 -
300-Pump Station 6 Building 2002 20 2022 234,871 8 in capital budget 234,871
301 -Pump Station 7 Building 1985 50 2035 283,184 21 16,647 -
302-Pump Station 7 Building 1985 50 2035 166,367 21 9,780 -
303-Pump Station 8 Building 1985 50 2035 283,184 21 16,647 -
304-Pump Station 8 Building 1985 50 2035 166,367 21 9,780 -
306-TCG ASPHALT 2010 75 2085 5,429 71 144 -
307-PK CONSTRUCTION INC 2010 75 2085 289,655 71 7,674 -
1288-HI-TECH CONTROLS(LO 2010 20 2030 8,789 16 647 -
1289-ENVIROCAN WASTEWATER 2010 20 2030 299,931 16 22,090 -
Total 8,387,864 274,110 2,223,540
Watson &Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx
B-2
Table B-2
Municipality of Bayham
Sanitary Sewers
Replace Total Main Annual Amount to
Street Year Estimated ment Replacement Years until Lifecycle be included
Installed Life Year Costs Replacement Contribution in 10 year
Forecast
Sewer Air Release Valves
1011 -Air Release Valves 2000 35 2035 207,738 21 12,212 -
Sewer Forcemains
1094-Brock Street 4" 1985 100 2085 27,513 71 729 -
1095-Erieus Street 4" 1985 100 2085 110,053 71 2,916 -
1096-Easement Parallel To Union Street 6" 1985 100 2085 55,027 71 1,458 -
1097-Nova Scotia Line 6" 1985 100 2085 165,077 71 4,374 -
1098-Bridge Street 6" 1985 100 2085 55,027 71 1,458 -
1099-Pearl Street 10" 2001 100 2101 234,942 87 5,720 -
1100-Centre Street 10" 2001 100 2101 176,207 87 4,290 -
1101 -Vienna Line 10" 2001 100 2101 646,091 87 15,731 -
1102-Brown Line 10" 2001 100 2101 1,879,535 87 45,762 -
1103-Plank Road 8" 2001 100 2101 3,412,841 87 83,094 -
1104-Garner Road 2" 2001 100 2101 55,026 87 1,340 -
1105-Heritage Line 2" 2001 100 2101 165,078 87 4,019 -
1106-Plank Road 6" 2001 100 2101 165,078 87 4,019 -
1107-Plank Road 4" 2001 100 2101 2,586,217 87 62,968 -
Sewer Mains
1012-Plank Road 10" 2001 100 2101 352,413 87 8,580 -
1013-Plank Road 10" 2001 100 2101 646,091 87 15,731 -
1014-Travis Street 8" 2001 100 2101 56,881 87 1,385 -
1015-Eden Line 8" 2001 100 2101 284,403 87 6,925 -
1016-Eden Line 8" 2001 100 2101 682,568 87 16,619 -
1017-Gray Street 8" 2001 100 2101 113,761 87 2,770 -
1018-Sandytown Road 8" 2000 100 2100 398,165 86 9,737 -
1019-Old Chapel Road 8" 2000 100 2100 113,761 86 2,782 -
1020-Duke Street 8" 2000 100 2100 113,761 86 2,782 -
1021 -Plank Road 10" 2000 100 2100 176,206 86 4,309 -
1022-Plank Road 2" 2000 100 2100 440,208 86 10,765 -
1023-Garnham Street 8" 2000 100 2100 113,761 86 2,782 -
1024-West Street 8" 2000 100 2100 28,441 86 695 -
1025-West Street 10" 2000 100 2100 117,472 86 2,873 -
1026-Sort Street 8" 2000 100 2100 56,880 86 1,391 -
1027-East Street 8" 2000 100 2100 28,441 86 695 -
1028-Alward Street 8" 2000 100 2100 56,880 86 1,391 -
1029-Garner Road 8" 2000 100 2100 56,880 86 1,391 -
1030-Wardwalk Line 8" 2000 100 2100 113,761 86 2,782 -
1031 -Heritage Line 8" 2000 100 2100 682,568 86 16,691 -
1032-Arthur Street 8" 2000 100 2100 113,761 86 2,782 -
1033-Main Street 8" 2000 100 2100 56,880 86 1,391 -
1034-Main Street 8" 2000 100 2100 170,643 86 4,173 -
1035-Hesch Street 8" 2000 100 2100 34,128 86 835 -
1036-First Street 8" 2000 100 2100 170,643 86 4,173 -
1037-Second Street 8" 2000 100 2100 56,880 86 1,391 -
1038-Third Street 8" 2000 100 2100 113,761 86 2,782 -
1039-Fourth Street 8" 2000 100 2100 56,880 86 1,391 -
1040-Fifth Street 8" 2000 100 2100 56,880 86 1,391 -
1041 -Wardwalk Line 8" 2000 100 2100 113,761 86 2,782 -
1042-Heritage Line East 8" 2000 100 2100 341,284 86 8,346 -
1043-Heritage Line East 10" 2000 100 2100 117,472 86 2,873 -
1044-Centre Street 8" 2001 100 2101 284,403 87 6,925 -
1045-Centre Street 10" 2001 100 2101 176,207 87 4,290 -
1046-Vienna Line 8" 2001 100 2101 113,761 87 2,770 -
1047-Pearl Street 8" 2001 100 2101 227,522 87 5,540 -
1048-Fulton Street 10" 2001 100 2101 352,413 87 8,580 -
1049-Union Street 8" 2001 100 2101 113,761 87 2,770 -
1050-Union Street 8" 2001 100 2101 39,816 87 969 -
1051 -Pine Street 8" 2001 100 2101 113,761 87 2,770 -
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx
B-3
Table B-2
Municipality of Bayham
Sanitary Sewers
Replace Total Main Annual Amount to
Street Year Estimated ment Replacement Years until Lifecycle be included
Installed Life Year Costs Replacement Contribution in 10 year
Forecast
1052-Snow Street 8" 2001 100 2101 56,881 87 1,385 -
1053-Elm Street 8" 2001 100 2101 341,285 87 8,309 -
1054-Chestnut Street 8" 2001 100 2101 170,642 87 4,155 -
1055-Oak Street 8" 2001 100 2101 170,642 87 4,155 -
1056-Oak Street 8" 2001 100 2101 113,761 87 2,770 -
1057-Queen Street 8" 2001 100 2101 56,881 87 1,385 -
1058-Edison Drive 10" 2001 100 2101 352,413 87 8,580 -
1059-Ann Street 8" 2001 100 2101 56,881 87 1,385 -
1060-Ann Street 8" 2001 100 2101 113,761 87 2,770 -
1061 -Plank Road 14" 2001 100 2101 1,030,035 87 25,079 -
1062-Otter Street 8" 2001 100 2101 28,440 87 692 -
1063-Front Street 14" 2001 100 2101 30,295 87 738 -
1064-Water Street 10" 2001 100 2101 117,471 87 2,860 -
1065-King Street 8" 2001 100 2101 113,761 87 2,770 -
1066-Plank Road 10" 2001 100 2101 58,736 87 1,430 -
1067-Walnut Street 8" 2001 100 2101 113,761 87 2,770 -
1068-North Street 8" 2001 100 2101 56,881 87 1,385 -
1069-Chapel Street 8" 2001 100 2101 170,642 87 4,155 -
1070-Elizabeth Street 8" 1985 100 2085 284,404 71 7,535 -
1071 -Victoria Street 8" 1985 100 2085 398,166 71 10,549 -
1072-Victoria Street 8" 1985 100 2085 56,881 71 1,507 -
1073-Milton Street 8" 1985 100 2085 56,881 71 1,507 -
1074-Shakespeare Street 8" 1985 100 2085 170,643 71 4,521 -
1075-Strachan Street 8" 1985 100 2085 341,285 71 9,042 -
1076-Erieus Street 8" 1985 100 2085 227,523 71 6,028 -
1077-Robinson Street 8" 1985 100 2085 113,762 71 3,014 -
1078-Robinson Street 8" 2010 100 2110 42,303 96 995 -
1079-Robinson Street 8" 1985 100 2085 113,762 71 3,014 -
1080-Union Street 12" 1985 100 2085 36,355 71 963 -
1081 -Waterloo Street 10" 1985 100 2085 293,678 71 7,781 -
1082-Wellington Street 8" 1985 100 2085 56,881 71 1,507 -
1083-Wellington Street 8" 1985 100 2085 227,523 71 6,028 -
1084-Pitt Street 8" 1985 100 2085 22,751 71 603 -
1085-Pitt Street 8" 1985 100 2085 227,523 71 6,028 -
1086-Brock Street 8" 1985 100 2085 113,762 71 3,014 -
1087-Chatham Street 14" 1985 100 2085 787,673 71 20,869 -
1088-Addison Street 8" 1985 100 2085 341,285 71 9,042 -
1089-Libbye Street 8" 1985 100 2085 56,881 71 1,507 -
1090-Bridge Street 8" 1985 100 2085 56,881 71 1,507 -
1091 -Newton Street 8" 1985 100 2085 56,881 71 1,507 -
1092-Easement West Of Bodsworth Street 8" 1985 100 2085 56,881 71 1,507 -
1093-Bodsworth Street 8" 1985 100 2085 28,440 71 754 -
1108-Erieus Street 12" 1985 100 2085 121,181 71 3,211 -
Total 24,842,728 622,398 0
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx
APPENDIX C
BAYHAM SYSTEM DETAILED WATER RATE CALCULATIONS
Watson&Associates Economists Ltd. H:IBayham12014 W&WW Rate Study and O.Reg Financial Plan\Report\Report.docx
Table C-1
Municipality of Bayham
Water Service-Bayham
Capital Budget Forecast
Inflated$
Description Budget Forecast
Total
2014 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
Capital Expenditures
Shared Pick-up truck(20%Bayham Water) - 6,000 - - - 6,000 - - - - - -
Water meter and backflow prevented replacement(Bayham
270,000 - 52,000 53,000 54,000 55,000 56,000
-
-
-
-
-
system)
Vienna Booster Station Upgrades 5,000 - - - - - - - - - - -
Radio meters/heads 5,000 - - - - - - - - -
Studies - - - - - - - - - - -
Water Rate Study&Financial Plan 11,550 - - - - - - - - - - -
Lifecycle - - - - - - - - - - -
Water Curb Stops,Hydrants,Valves,Meters - - - - - - - - - - -
Watermains - - - - - - - - - - -
Total Capital Expenditures 21,550 276,000 - - - 6,000 - 52,000 53,000 54,000 55,000 56,000
Capital Financing
Provincial/Federal Grants -
Development Charges Reserve Fund - - - - - - - - - - - -
Non-Growth Related Debenture Requirements - - - - - - - - - - - -
Growth Related Debenture Requirements - - - - - - - - - - - -
Operating Contributions - - - - - - - - - - - -
Lifecycle Reserve Fund - - - - - - - - - - - -
Water Reserve 21,550 276,000 - - - 6,000 - 52,000 53,000 54,000 55,000 56,000
Total Capital Financing 21,550 276,000 - - - 6,000 - 52,000 53,000 54,000 55,000 56,000
Table C-2
Municipality of Bayham
Water Service-Bayham
Schedule of Non-Growth Related Debenture Repayments
Inflated$
Debenture 2014 Principal Forecast
Year (Inflated) 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
2015 - - - - - - - - - -
2016 - - - - - - - - -
2017 - - - - - - - -
2018 - - - - - - -
2019 - - - - - -
2020 - - - - -
2021 - - - -
2022 - - -
2023 - -
2024 -
ITotal Annual Debt Charges II - II - II - I - I - I - I - I - I - I - I -
0
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx.xls
Table C-3
Municipality of Bayham
Water Service-Bayham
Water Capital Reserve
Inflated$
Description I 2014 I II 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
Opening Balance 481,349 546,799 593,999 643,999 693,999 737,999 787,999 785,999 782,999 778,999 773,999
Transfer from Operating 87,000 47,200 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Transfer to Capital 21,550 - - - 6,000 - 52,000 53,000 54,000 55,000 56,000
Transfer to Operating - - - - - - - - - - -
Closing Balance 546,799 593,999 643,999 693,999 737,999 787,999 785,999 782,999 778,999 773,999 767,999
Table C-4
Municipality of Bayham
Water Service-Bayham
Water Rate Stabilization Reserve
Inflated$
Description I 2014 I II 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
Opening Balance 555,660 555,660 555,660 555,660 555,660 555,660 555,660 555,660 555,660 555,660 555,660
Transfer from Operating - - - - - - - - - - -
Transfer to Capital - - - - - - - - - - -
Transfer to Operating - - - - - - - - - - -
Closing Balance 555,660 555,660 555,660 555,660 555,660 555,660 555,660 555,660 555,660 555,660 555,660
Table C-5
Municipality of Bayham
Water Service-Bayham
Water Lifecycle Reserve Fund Continuity
Inflated$
Descri.tion -I 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
Opening Balance - - - 5,684 21,400 48,314 88,522 144,051 230,660 376,220 552,586
Transfer from Operating - - 5,600 15,400 26,200 38,900 53,400 83,200 140,000 168,200 198,400
Transfer to Capital - - - - - - - - - - -
Transfer to Operating - - - - - - - - - - -
Closing Balance - - 5,600 21,084 47,600 87,214 141,922 227,251 370,660 544,420 750,986
Interest - - 84 316 714 1,308 2,129 3,409 5,560 8,166 11,265
C)
N
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx.xls
Table C-6
Municipality of Bayham
Water Service-Bayham
Operating Budget Forecast
Inflated$
Budget Forecast
Description 2014 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
Expenditures
Operating Costs - - - - - - - - -
Salaries&Wages 50,291 51,300 52,300 53,300 54,400 55,500 56,600 57,700 58,900 60,100 61,300
Statutory Benefits 4,470 4,600 4,700 4,800 4,900 5,000 5,100 5,200 5,300 5,400 5,500
Non Statutory Benefits 9,751 9,900 10,100 10,300 10,500 10,700 10,900 11,100 11,300 11,500 11,700
Supplies 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800
Tools and Equipment 500 500 500 500 500 500 500 500 500 500 500
Lab Fees 5,000 5,100 5,200 5,300 5,400 5,500 5,600 5,700 5,800 5,900 6,000
Utilities 2,075 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100
Advertising 206 200 200 200 200 200 200 200 200 200 200
Association Fees 550 600 600 600 600 600 600 600 600 600 600
Auditing Fees 3,400 3,500 3,600 3,700 3,800 3,900 4,000 4,100 4,200 4,300 4,400
System Maintenance 6,550 6,700 6,800 6,900 7,000 7,100 7,200 7,300 7,400 7,500 7,700
Vehicle Maintenance 700 700 700 700 700 700 700 700 700 700 700
Insurance 706 700 700 700 700 700 700 700 700 700 700
Legal Fees - - - - - - - - - - -
Truck water distribution 2,850 2,900 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800
Training&Education 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900
Licenses 150 200 200 200 200 200 200 200 200 200 200
Conference&Seminars 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Telephone&Internet 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Sundry 100 100 100 100 100 100 100 100 100 100 100
Water Quality Management 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800 3,900 4,000
Primary&Secondary Water System Costs 366,016 390,072 411,626 433,532 455,790 478,400 501,363 524,677 540,262 556,261 572,684
Administrative Overhead 5,400 5,500 5,600 5,700 5,800 5,900 6,000 6,100 6,200 6,300 6,400
Utility Adjustments 4,000 4,100 4,200 4,300 4,400 4,500 4,600 4,700 4,800 4,900 5,000
Sub Total Operating 473,415 499,572 523,126 547,032 571,390 596,100 621,163 646,577 664,362 682,561 701,284
Capital-Related
Existing Debt(Principal)-Growth Related -
Existing Debt(Interest)-Growth Related -
Existing Debt(Principal) -Non-Growth Related 32,729 34,085 35,497 36,967 38,498 40,093 41,754 30,014
Existing Debt(Interest) -Non-Growth Related 11,318 9,963 8,551 7,081 5,550 3,955 2,294 590
New Non-Growth Related Debt(Principal) - - - - - - - - - -
New Non-Growth Related Debt(Interest) - - - - - - - - - -
Transfer to Capital - - - - - - - - - - -
Transfer to Capital Reserve 87,000 47,200 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Transfer to Rate Stabilization Reserve
Sub Total Capital Related 131,048 91,248 94,048 94,048 94,048 94,048 94,048 80,604 50,000 50,000 50,000
Total Expenditures 604,463 590,819 617,174 641,080 665,438 690,148 715,211 727,181 714,362 732,561 751,284
Revenues
Base Charge 106,002 108,695 112,037 115,470 118,995 122,615 126,332 130,149 134,068 138,092 142,223
Other Revenue-Landowner Debenture Recovery 41,147
Water Meters 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500
Water Connect Charges 5,585 5,700 5,800 5,900 6,000 6,100 6,200 6,300 6,400 6,500 6,600
Penalties and Interest 8,000 8,200 8,400 8,600 8,800 9,000 9,200 9,400 9,600 9,800 10,000
Contributions from Development Charges Reserve Fund - - - - - - - - - - -
Contributions from Reserves/Reserve Funds - - - - - - - - - - -
Total Operating Revenue 163,234 125,195 128,937 132,770 136,695 140,715 144,832 149,049 153,368 157,792 162,323
Water Billing Recovery-Operating 441,229 465,625 488,236 508,310 528,743 549,433 570,378 578,131 560,994 574,769 588,961
Lifecycle Reserve Contribution($) 5,600 15,400 26,200 38,900 53,400 83,200 140,000 168,200 198,400
Water Billing Recovery-Total 441,229 465,625 493,836 523,710 554,943 588,333 623,778 661,331 700,994 742,969 787,361
C)
W
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx.xls
Table C-7
Municipality of Bayham
Water Service-Bayham
Water Rate Forecast
Inflated$
2014 2014
Description Calculated Existing 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
ITotal Water Billing Recovery II 441,229 I I 465,625 I 493,836 I 523,710 I 554,943 I 588,333 I 623,778 I 661,331 I 700,994 I 742,969 I 787,361
Total Consumption(m3) 156,188 156,980 158,564 160,148 161,732 163,316 164,900 166,484 168,068 169,652 171,236
Constant Rate 2.82 2.82 2.97 3.11 3.27 3.43 3.60 3.78 3.97 4.17 4.38 4.60
'Annual Percentage Change 11 1 1 5%1 5%1 5%1 5%1 5%1 5%1 5%1 5%1 5%1 5%1
C)
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx.xls
APPENDIX D
RICHMOND SYSTEM DETAILED WATER RATE
CALCULATIONS
Watson&Associates Economists Ltd. H:IBayham12014 W&WW Rate Study and O.Reg Financial Plan\Report\Report.docx
Table D-1
Municipality of Bayham
Water Service-Richmond
Capital Budget Forecast
Inflated$
Budget Forecast
Description 2014 Total 2015 I 2016 I 2017 I 2018 I 2019 [ 2020 I 2021 I 2022 I 2023 I 2024
Capital Expenditures
Richmond water--building roofing and stand by generator with 46,000 15,000 15,000 16,000
-
-
-
-
-
-
-
associated transfer switch and electrical
Shared Pick-up truck(10%Richmond) - 3,000 - - - 3,000 - - - - - -
Richmond water treatment--equipment rebuilds and or 44,000 - - 14,000 15,000 15,000
-
-
-
-
-
-
replacement
Replacement of the Richmond water distribution system including
879,000 - 287,000 293,000 299,000
-
-
-
-
-
-
-
water metering and backflow prevention
Lifecycle - - -
-
-
-
-
-
- - - -
Facilities - - - - - - - - - - -
Linear -
-
-
- - - - - - - -
Total Capital Expenditures - 972,000 15,000 15,000 16,000 3,000 - - - 301,000 308,000 314,000
Capital Financing
Provincial/Federal Grants -
Development Charges Reserve Fund - - - - - - - - - - - -
Non-Growth Related Debenture Requirements - 758,400 11,000 8,400 5,000 - - - - 157,000 274,000 303,000
Growth Related Debenture Requirements - - - - - - - - - - - -
Operating Contributions -
Lifecycle Reserve Fund - - - - - - - - - - - -
Water Reserve - 213,600 4,000 6,600 11,000 3,000 - - - 144,000 34,000 11,000
Total Capital Financing - 972,000 15,000 15,000 16,000 3,000 - - - 301,000 308,000 314,000
Table D-2
Municipality of Bayham
Water Service-Richmond
Schedule of Non-Growth Related Debenture Repayments
Inflated$
Debenture 2014 Principal Forecast
Year (Inflated) 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
2015 11,000 1,323 1,323 1,323 1,323 1,323 1,323 1,323 1,323 1,323
2016 8,400 1,010 1,010 1,010 1,010 1,010 1,010 1,010 1,010
2017 5,000 601 601 601 601 601 601 601
2018 - - - - - - -
2019 -
-
-
-
- -
2020 - - - - -
2021 - - - -
2022 157,000 18,878 18,878
2023 274,000 32,946
2024 303,000
'Total Annual Debt Charges 11 - II 758,400 II - I 1,323 I 2,333 I 2,934 I 2,934 1 2,934 I 2,934 1 2,934 I 21,812 I 54,7581
0
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx.xls
Table D-3
Municipality of Bayham
Water Service-Richmond
Schedule of Growth Related Debenture Repayments
Inflated$
Debenture 2014 Principal Forecast
Year (Inflated) 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
2015 - - - - - - - - - -
2016 - - - - - - - - -
2017 - - - - - - - -
2018 - - - - - - -
2019 - - - - - -
2020 - - - - -
2021 - - - -
2022 - - -
2023 - -
2024 -
ITotal Annual Debt Charges II - II - II - I - I - 1 - I - I - I - I - I - I -
Table D-4
Municipality of Bayham
Water Service-Richmond
Water Capital Reserve
Inflated$
I Description I 2014 I II 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
Opening Balance - 293 293 693 693 13,693 35,693 64,193 100,193 193 193
Transfer from Operating 293 4,000 7,000 11,000 16,000 22,000 28,500 36,000 44,000 34,000 11,000
Transfer to Capital - 4,000 6,600 11,000 3,000 - - - 144,000 34,000 11,000
Transfer to Operating - - - - - - - - - - -
Closing Balance 293 293 693 693 13,693 35,693 64,193 100,193 193 193 193
Table D-5
Municipality of Bayham
Water Service-Richmond
Water Rate Stabilization Reserve
Inflated$
Description j 2014 I II 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
Opening Balance - - - - - - - - - - -
Transfer from Operating - - - - - - - - - - -
Transfer to Capital - - - - - - - - - - -
Transfer to Operating - - - - - - - - - - -
Closing Balance - - - - - - - - - - -
Table D-6
Municipality of Bayham
Water Service-Richmond
Water Lifecycle Reserve Fund Continuity
Inflated$
Description I 2014 I II 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
Opening Balance - - - - - - - - - - -
Transfer from Operating - _ - - - - - - - - - -
Transfer to Capital - - - - - - - - - - -
Transfer to Operating - - - - - - - - - - -
Closing Balance - - - - - - - - - - -
Interest - - - - - - - - - - -
a
I3
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx.xls
Table D-7
Municipality of Bayham
Water Service-Richmond
Operating Budget Forecast
Inflated$
Budget Forecast
Description 2014 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
Expenditures
Operating Costs - - - - - - - - -
Salaries&Wages 19,868 20,300 20,700 21,100 21,500 21,900 22,300 22,700 23,200 23,700 24,200
Statutory Benefits 1,766 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800
Non Statutory Benefits 3,852 3,900 4,000 4,100 4,200 4,300 4,400 4,500 4,600 4,700 4,800
Supplies 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800 3,900 4,000
Tools and Equipment 150 200 200 200 200 200 200 200 200 200 200
Lab Fees 3,500 3,600 3,700 3,800 3,900 4,000 4,100 4,200 4,300 4,400 4,500
Utilities 4,000 4,100 4,200 4,300 4,400 4,500 4,600 4,700 4,800 4,900 5,000
Property Taxes 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Advertising 75 100 100 100 100 100 100 100 100 100 100
Association Fees 81 100 100 100 100 100 100 100 100 100 100
Auditing Fees - - - - - - - - - - -
Water Quality Managemtn 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
System Maintenance 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Vehicle Maintenance 331 300 300 300 300 300 300 300 300 300 300
Richmond Truck 2,750 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700
Training&Education 725 700 700 700 700 700 700 700 700 700 700
Licences 345 400 400 400 400 400 400 400 400 400 400
Conferences&Seminars 400 400 400 400 400 400 400 400 400 400 400
Legal Fees - - - - - - - - - - -
Richmond Water Amtelecom 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200
Administrative Overhead - - - - - - - - - - -
Sub Total Operating 48,043 49,000 49,900 50,800 51,700 52,600 53,500 54,400 55,400 56,400 57,400
Capital-Related
Existing Debt(Principal)-Growth Related -
Existing Debt(Interest)-Growth Related -
New Growth Related Debt(Principal) - - - - - - - - - -
New Growth Related Debt(Interest) - - - - - - - - - -
Existing Debt(Principal) -Non-Growth Related
Existing Debt(Interest) -Non-Growth Related
New Non-Growth Related Debt(Principal) - 938 1,687 2,172 2,248 2,326 2,408 2,492 15,962 39,877
New Non-Growth Related Debt(Interest) - 385 646 762 686 607 526 442 5,850 14,881
Transfer to Capital - - - - - - - - - - -
Transfer to Capital Reserve 293 4,000 7,000 11,000 16,000 22,000 28,500 36,000 44,000 34,000 11,000
Transfer to Rate Stabilization Reserve
Sub Total Capital Related 293 4,000 8,323 13,333 18,934 24,934 31,434 38,934 46,934 55,812 65,758
Total Expenditures 48,336 53,000 58,223 64,133 70,634 77,534 84,934 93,334 102,334 112212 123,158
Revenues
Base Charge - - - - - - - - - - -
Other Revenue - - - - - - - - -
Contributions from Development Charges Reserve Fund - - - - - - - - - - -
Contributions from Reserves/Reserve Funds - _ - - - - - - - - - -
Total Operating Revenue - - - - - - - - - - -
Water Billing Recovery-Operating 48,336 53,000 58,223 64,133 70,634 77,534 84,934 93,334 102,334 112,212 123,158
Lifecycle Reserve Contribution($)
Water Billing Recovery-Total 48,336 53,000 58,223 64,133 70,634 77,534 84,934 93,334 102,334 112,212 123,158
a
G)
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx.xls
Table D-8
Municipality of Bayham
Water Service-Richmond
Water Rate Forecast
Inflated$
2014 2014
Description Calculated Existing 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
(Total Water Billing Recovery II 48,336 I 1 53,000 I 58,223 I 64,133 I 70,634 I 77,534 I 84,934 I 93,334 I 102,334 I 112,212 I 123,1561
Total Customers 53 53 53 53 53 53 53 53 53 53 53
Flat Rate-Annual 912.00 912.00 1,000.00 1,098.54 1,210.05 1,332.71 1,462.90 1,602.53 1,761.02 1,930.83 2,117.20 2,323.73
(Flat Rate-Monthly II 76.00 1 76.00 1 83.33 1 91.55 1 100.84 1 111.06 1 121.91 1 133.54 1 146.75 1 160.90 1 176.43 1 193.641
lAnnual Percentage Change II 1 1 10%1 10%1 10%I 10%I 10%4 10%4 10%4 10%I 10%4 10/I
a
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx.xls
APPENDIX E
COMBINED BAYHAM & RICHMOND SYSTEM DETAILED
WATER RATE CALCULATIONS
Watson&Associates Economists Ltd. H:IBayham12014 W&WW Rate Study and O.Reg Financial Plan\Report\Report.docx
Table E-1
Municipality of Bayham
Water Service-Bayham&Richmond
Capital Budget Forecast
Inflated$
Budget Forecast
Description 2014 Total 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
I
Bayham
Capital Expenditures
Shared Pick-up truck(20%Bayham Water) - 6,000 - - - 6,000 - - - - - -
WaterTowerRehabilitation - - - - - - - - - - - -
Water meter and backflow prevented replacement(Bayham
- 270,000 - - - - - 52,000 53,000 54,000 55,000 56,000
system)
Vienna Booster Station Upgrades 5,000 - - - - - - - - - - -
Radio meters/heads 5,000 - - - - - - - - - - -
Studies
Water Rate Study&Financial Plan 11,550 - - - - - - - - - - -
Lifecycle
Water Curb Stops,Hydrants,Valves,Meters - - - - - - - - - - -
Watermains - - - - - - - - - - -
Richmond -
Capital Expenditures -
Richmond water--building roofing and stand by generator with
associated transfer switch and electrical - 46,000 15,000 15,000 16,000 - - - - - - -
Shared Pick-up truck(10%Richmond) - 3,000 - - - 3,000 - - - - - -
Richmond water treatment---equipment rebuilds and or
- 44,000 - - - - - - - 14,000 15,000 15,000
replacement
Replacement of the Richmond water distribution system
- 679,000 - - - - - - - 287,000 293,000 299,000
including water metering and backflow prevention
Lifecycle - - - - - - - - - - - -
Facilities - - - - - - - - - - - -
Linear - - - - - - - - - - -
-
TotalCapitalExpenditures 21,550 1,248,000 15,000 15,000 16,000 9,000 - 52,000 53,000 355,000 363,000 370,000
Capital Financing
Provincial/Federal Grants -
Development Charges Reserve Fund - - - - - - - - - - - -
Non-Growth Related Debenture Requirements - - - - - - - - - - - -
Growth Related Debenture Requirements - - - - - - - - - - - -
Operating Contributions - - - - - - - - - - - -
Lifecycle Reserve Fund - - - - - - - - - - - -
Water Reserve 21,550 1,248,000 15,000 15,000 16,000 9,000 - 52,000 53,000 355,000 363,000 370,000
Total Capital Financing 21,550 1,248,000 15,000 15,000 16,000 9,000 - 52,000 53,000 355,000 363,000 370,000
Table E-2
Municipality of Bayham
Water Service-Bayham&Richmond
Schedule of Non-Growth Related Debenture Repayments
Inflated$
Debenture 2014 Principal Forecast
Year (Inflated) 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
2015 - - - - - - - - - -
2016 - - - - - - - - -
2017 - - - - - - - -
2018 - - - - - - -
2019 - - - - - -
2020 - - - - -
2021 - - - -
2022 - - -
2023 - -
_ 2024 - I
(Total Annual Debt Charges II - II - II - f - I - 1 - I - I - I - I - I - I -
m
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx.xls
Table E-3
Municipality of Bayham
Water Service-Bayham&Richmond
Water Capital Reserve
Inflated$
I Description I 2014 I II 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024 I
Opening Balance 481,349 547,092 579,292 619,292 668,292 737,046 829,269 885,793 973,014 817,051 683,452
Transfer from Operating 87,293 47,200 55,000 65,000 77,754 92,224 108,524 140,221 199,037 229,401 261,949
Transfer to Capital 21,550 15,000 15,000 16,000 9,000 - 52,000 53,000 355,000 363,000 370,000
Transfer to Operating - - - - - - - - - - -
Closing Balance 547,092 579,292 619,292 668,292 737,046 829,269 885,793 973,014 817,051 683,452 575,401
Table E-4
Municipality of Bayham
Water Service-Bayham&Richmond
Water Rate Stabilization Reserve
Inflated$
Description I 2014 I II 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
Opening Balance 555,660 555,660 555,660 555,660 555,660 555,660 555,660 555,660 555,660 555,660 555,660
Transfer from Operating - - - - - - - - - - -
Transfer to Capital - - - - - - - - - - -
Transfer to Operating - - - - - - - - - - -
Closing Balance 555,660 555,660 555,660 555,660 555,660 555,660 555,660 555,660 555,660 555,660 555,660
Table E-5
Municipality of Bayham
Water Service-Bayham&Richmond
Water Lifecycle Reserve Fund Continuity
Inflated$
I Description I 2014 I II 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024 I
Opening Balance - - 6,296 19,694 40,595 68,573 104,529 149,449 204,414 270,608 349,324
Transfer from Operating - 6,203 13,107 20,301 26,965 34,411 42,711 51,945 62,195 73,553 86,119
Transfer to Capital - - - - - - - - - - -
Transfer to Operating - - - - - - - - - - -
Closing Balance - 6,203 19,403 39,995 67,560 102,984 147,240 201,394 266,609 344,162 435,444
Interest - 93 291 600 1,013 1,545 2,209 3,021 3,999 5,162 6,532
m
N
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx.xls
E-3
Table E-6
Municipality of Bayham
Water Service-Bayham&Richmond
Operating Budget Forecast
Inflated$
Budget Forecast
Description 2014 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
l iam
Expenditures
Operating Costs - - - - - - - - -
Salaries&Wages 50,291 51,300 52,300 53,300 54,400 55,500 56,600 57,700 58,900 60,100 61,300
Statutory Benefits 4,470 4,600 4,700 4,800 4,900 5,000 5,100 5,200 5,300 5,400 5,500
Non Statutory Benefits 9,751 9,900 10,100 10,300 10,500 10,700 10,900 11,100 11,300 11,500 11,700
Supplies 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800
Tools and Equipment 500 500 500 500 500 500 500 500 500 500 500
Lab Fees 5,000 5,100 5,200 5,300 5,400 5,500 5,600 5,700 5,800 5,900 6,000
Utilities 2,075 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100 2,100
Advertising 206 200 200 200 200 200 200 200 200 200 200
Association Fees 550 600 600 600 600 600 600 600 600 600 600
Auditing Fees 3,400 3,500 3,600 3,700 3,800 3,900 4,000 4,100 4,200 4,300 4,400
System Maintenance 6,550 6,700 6,800 6,900 7,000 7,100 7,200 7,300 7,400 7,500 7,700
Vehicle Maintenance 700 700 700 700 700 700 700 700 700 700 700
Insurance 706 700 700 700 700 700 700 700 700 700 700
Legal Fees - - - - - - - - - - -
Truckwaterdistribution 2,850 2,900 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800
Training&Education 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900 1,900
Licenses 150 200 200 200 200 200 200 200 200 200 200
Conference&Seminars 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Telephone&Internet 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Sundry 100 100 100 100 100 100 100 100 100 100 100
Water Quality Management 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800 3,900 4,000
Primary&Secondary Water System Costs 366,016 390,072 411,626 433,532 455,790 478,400 501,363 524,677 540,262 556,261 572,684
Administrative Overhead 5,400 5,500 5,600 5,700 5,800 5,900 6,000 6,100 6,200 6,300 6,400
Utility Adjustments 4,000 4,100 4,200 4,300 4,400 4,500 4,600 4,700 4,800 4,900 5,000
Richmond
Expenditures
Operating Costs
Salaries&Wages 19,868 20,300 20,700 21,100 21,500 21,900 22,300 22,700 23,200 23,700 24,200
Statutory Benefits 1,766 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800
Non Statutory Benefits 3,852 3,900 4,000 4,100 4,200 4,300 4,400 4,500 4,600 4,700 4,800
Supplies 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800 3,900 4,000
Tools and Equipment 150 200 200 200 200 200 200 200 200 200 200
Lab Fees 3,500 3,600 3,700 3,800 3,900 4,000 4,100 4,200 4,300 4,400 4,500
Utilities 4,000 4,100 4,200 4,300 4,400 4,500 4,600 4,700 4,800 4,900 5,000
Property Taxes 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Advertising 75 100 100 100 100 100 100 100 100 100 100
Association Fees 81 100 100 100 100 100 100 100 100 100 100
Auditing Fees - - - - - - - - - - -
Water Quality Managemtn 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
System Maintenance 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000
Vehicle Maintenance 331 300 300 300 300 300 300 300 300 300 300
Richmond Truck 2,750 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700
Training&Education 725 700 700 700 700 700 700 700 700 700 700
Licences 345 400 400 400 400 400 400 400 400 400 400
Conferences&Seminars 400 400 400 400 400 400 400 400 400 400 400
Legal Fees - - - - - - - - - - -
Richmond Water Amtelecom 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200
Administrative Overhead - - - - - - - - - - -
Sub Total Operating 521,458 548,572 573,026 597,832 623,090 648,700 674,663 700,977 719,762 738,961 758,684
Capital-Related
Existing Debt(Principal)-Growth Related -
Existing Debt(Interest)-Growth Related -
Existing Debt(Principal)-Non-Growth Related-Bayham 32,729 34,085 35,497 36,967 38,498 40,093 41,754 30,014 - - -
Existing Debt(Interest)-Non-Growth Related-Bayham 11,318 9,963 8,551 7,081 5,550 3,955 2,294 590 - -
-
Existing Debt(Principal)-Non-Growth Related-Richmond
Existing Debt(Interest)-Non-Growth Related-Richmond
New Non-Growth Related Debt(Principal) - - - - - - - - - -
New Non-Growth Related Debt(Interest) - - - - - - - - - -
Transfer to Capital - - - - - - - - - - -
Transfer to Capital Reserve 87,293 47,200 55,000 65,000 77,754 92,224 108,524 140,221 199,037 229,401 261,949
Transfer to Rate Stabilization Reserve
Sub Total Capital Related 131,341 91,248 99,048 109,048 121,802 136,272 152,572 170,824 199,037 229,401 261,949
Total Expenditures 652,799 639,819 672,074 706,880 744,892 784,972 827,235 871,801 918,799 968,362 1,020,633
Revenues
Base Charge 106,002 108,695 112,037 115,470 118,995 122,615 126,332 130,149 134,068 138,092 142,223
Richmond Charge 48,336 50,753 53,290 55,955 58,753 61,690 64,775 68,014 71,414 74,985 78,734
Other Revenue-Landowner Debenture Recovery 41,147
Water Meters 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500
Water Connect Charges 5,585 5,700 5,800 5,900 6,000 6,100 6,200 6,300 6,400 6,500 6,600
Penalties and Interest 8,000 8,200 8,400 8,600 8,800 9,000 9,200 9,400 9,600 9,800 10,000
Contributions from Development Charges Reserve Fund - - - - - - - - - - -
Contributions from Reserves/Reserve Funds - - - - - - - - - - -
Total Operating Revenue 211,570 175,948 182,228 188,725 195,448 202,406 209,607 217,063 224,783 232,777 241,057
Water Billing Recovery-Operating 441,229 463,872 489,846 518,155 549,444 582,566 617,628 654,738 694,016 735,585 779,576
Lifecycle Reserve Contribution($) 6,203 13,107 20,301 26,965 34,411 42,711 51,945 62,195 73,553 86,119
Water Billing Recovery-Total 441,229 470,075 502,953 538,456 576,409 616,977 660,339 706,683 756,211 809,139 865,695
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx.xls
Table E-7
Municipality of Bayham
Water Service-Bayham&Richmond
Water Rate Forecast-Richmond
Inflated$
Richmond
#of Customers 53 53 53 53 53 53 53 53 53 53 53
Richmond Volumes 10,504 10,504 10,504 10,504 10,504 10,504 10,504 10,504 10,504 10,504 10,504
Monthly Charge $ 76.00 $ 79.80 $ 83.79 $ 87.98 $ 92.38 $ 97.00 $ 101.85 $ 106.94 $ 112.29 $ 117.90 $ 123.80
Annual Charge $ 912 $ 958 $ 1,005 $ 1,056 $ 1,109 $ 1,164 $ 1,222 $ 1,283 $ 1,347 $ 1,415 $ 1,486
Table E-8
Municipality of Bayham
Water Service-Bayham&Richmond
Water Rate Forecast-Bayham
Inflated$
2014 2014
Description Calculated Existing 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total Water Billing Recovery 441,229 1 1 470,075 1 502,953 1 538,456 1 576,409 I 616,977 1 660,339 1 706,683 1 756,211 I 809,139 1 865,695
Total Consumption(m3) 156,188 156,980 158,564 160,148 161,732 163,316 164,900 166,484 168,068 169,652 171,236
Constant Rate 2.82 2.82 2.99 3.17 3.36 3.56 3.78 4.00 4.24 4.50 4.77 5.06
Annual Percentage Change I I 6%I 6%I 6%I 6%I 6%I 6%j 6%I 6%I 6%I 6%
M
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Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx.xls
APPENDIX F
BAYHAM SYSTEM DETAILED WASTEWATER RATE
CALCULATIONS
Watson&Associates Economists Ltd. H:IBayham12014 W&WW Rate Study and O.Reg Financial Plan\Report\Report.docx
Table F-1
Municipality of Bayham
Wastewater Service
Capital Budget Forecast
Inflated$
Description Budget Forecast
Total
2014 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
Capital Expenditures
Air release valves change outs - 95,000 15,000 15,000 16,000 16,000 16,000 17,000 - - - -
Pumping Station Roofing - 18,000 3,000 3,000 3,000 3,000 3,000 3,000 - - - -
Shared Pick up truck(70%) - 22,000 - - - 22,000 - - - - - -
Wastewater Generator Condition Assessment,Load testing and - 52,000 8,000 8,000 9,000 9,000 9,000 9,000 - - - -
possible repairs
Wastewater Manhole Rehabilitation(Port Bunnell collection - 63,000 10,000 10,000 10,000 11,000 11,000 11,000 - - - -
system)
Wastewater treatment plant process assessment and concrete _ 159,000 25,000 26,000 26,000 27,000 27,000 28,000 - - - -
structural integrity review along with potential repairs
Wastewater equipment(pumps,blowers,electric motors) - 263,000 42,000 43,000 43,000 44,000 45,000 46,000 - - -replacement to high efficient
Pump rebuilds 35,000 - - - - - - - - - - -
Air release valves-PS 2&5&Forcemains 15,500 - - - - - - - - - - -
Airblowerrebuilds 4,800 - - - - - - - - - - -
Septage Building Railing 4,000 - - - - - - - - - - -
Computer Upgrades 4,000 - - - - - - - - - - -
Studies
Wastewater Rate Study&Financial Plan 5,775 - - - - - - - - - - -
Total Capital Expenditures 69,075 672.000 103,000 105,000 107,000 132,000 111,000 114,000 - - - -
Capital Financing
Provincial/Federal Grants -
Development Charges Reserve Fund - - - - - - - - - - - -
Non-Growth Related Debenture Requirements - - - - - - - - - - - -
Growth Related Debenture Requirements - - - - - - - - - - - -
Operating Contributions - - - - - - - - - - - -
Lifecycle Reserve Fund - - - - - - - - - - - -
Transfer from Wastewater Capital&Rate Stabilization 69,075 672,000 103,000 105,000 107,000 132,000 111,000 114,000 - - -Transfer from Wastewater Capital Reserve - - - - - - - - - - - -
Total Capital Financing 69,075 672,000 103,000 105,000 107,000 132,000 111,000 114,000 - - - -
Table F-2
Municipality of Bayham
Wastewater Service
Schedule of Non-Growth Related Debenture Repayments
Inflated$
Debenture 2014 Principal Forecast
Year (Inflated) 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 2024
2015 - - - - - - - - - -
2016 - - - - - - - - -
2017 - - - - - - - -
2018 - - - - - - -
2019 - - - - - -
2020 - - - - -
2021 - - - -
2022 - - -
2023 - -
2024 -
ITotal Annual Debt Charges 1I - II - II - - - - - - - I - I - I -
7'
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Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx.xls
Table F-3
Municipality of Bayham
Wastewater Service
Schedule of Growth Related Debenture Repayments
Inflated$
Debenture 2014 Principal Forecast
Year (Inflated) 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
2015 - - - - - - - - - -
2016 - - - - - - - - -
2017 - - - - - - - -
2018 - - - - - - -
2019 - - - - - -
2020 - - - - -
2021 - - - -
2022 - - -
2023 - -
2024 -
'Total Annual Debt Charges - II - II - I - I - - I - I - I - I - I - I - I
Table F-4
Municipality of Bayham
Wastewater Service
Wastewater Capital Reserve
Inflated$
Description I 2014 I II 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
Opening Balance 53,483 53,483 53,483 53,483 53,483 53,483 53,483 53,483 53,483 53,483 53,483
Transfer from Operating - - - - - - - - - - -
TransfertoCapital - - - - - - - - - -Transfer to Operating - - - - - - - - - - -
Closing Balance 53,483 53,483 53,483 53,483 53,483 53,483 53,483 53,483 53,483 53,483 53,483
Table F-5
Municipality of Bayham
Wastewater Service
Wastewater Rate Stabilization Reserve
Inflated$
Description I 2014 I II 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024 I
Opening Balance 61,740 61,740 61,740 61,740 61,740 61,740 61,740 61,740 61,740 61,740 61,740
Transfer from Operating - - - - - - - - - - -
Transfer to Capital - - - - - - - - - - -
Transfer to Operating -
Closing Balance 61,740 61,740 61,740 61,740 61,740 61,740 61,740 61,740 61,740 61,740 61,740
Table F-6
Wastewater Service
Wastewater Service
Wastewater Capital&Rate Stabilization Reserve
Inflated$
Description I 2014 I II 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024 I
Opening Balance 1,366,123 1,482,148 1,564,248 1,644,348 1,722,448 1,775,548 1,849,648 1,920,748 2,105,848 2,290,948 2,476,048
Transfer from Operating 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100
Transfer to Capital 69,075 103,000 105,000 107,000 132,000 111,000 114,000 - - -Transfer to Operating - - - - - - - - - - -
Closing Balance 1,482,148 1,564,248 1,644,348 1,722,448 1,775,548 1,849,648 1,920,748 2,105,848 2,290,948 2,476,048 2,661,148
Table F-7
Municipality of Bayham
Wastewater Service
Lifecycle Reserve Fund
Inflated$
Description I 2014 I II 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024 I
Opening Balance - I_ - 25,375 81,581 169,079 293,416 455,142 659,894 913,392 1,216,368 1,574,639
Transfer from Operating - 25,000 55,000 85,000 120,000 155,000 195,000 240,000 285,000 335,000 390,000
Transfer to Capital - - - - - - - - - -Transfer to Operating - - - - - - - - - - -
Closing Balance - 25,000 80,375 166,581 289,079 448,416 650,142 899,894 1,198,392 1,551,368 1,964,639
Interest - I _ 375 1,206 2,499 4,336 6,726 9,752 13,498 17,976 23,271 29,470
711Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx.xls
Table F-8
Municipality of Bayham
Wastewater Services
Operating Budget Forecast
Inflated$
Budget Forecast
Description 2014 2015 I 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024
Expenditures
Operating Costs
Salaries&Wages 178,193 181,800 185,400 189,100 192,900 196,800 200,700 204,700 208,800 213,000 217,300
Statutory Benefits 15,838 16,200 16,500 16,800 17,100 17,400 17,700 18,100 18,500 18,900 19,300
Non Statutory Benefits 34,551 35,200 35,900 36,600 37,300 38,000 38,800 39,600 40,400 41,200 42,000
Clothing Allowance 633 600 600 600 600 600 600 600 600 600 600
Advertising 200 200 200 200 200 200 200 200 200 200 200
Association&Mem Fees 200 200 200 200 200 200 200 200 200 200 200
Auditing Fees 3,400 3,500 3,600 3,700 3,800 3,900 4,000 4,100 4,200 4,300 4,400
Insurance 5,908 6,000 6,100 6,200 6,300 6,400 6,500 6,600 6,700 6,800 6,900
Training&Education 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300 2,300
Licenses 150 200 200 200 200 200 200 200 200 200 200
Conference&Seminars 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500
Travel 250 300 300 300 300 300 300 300 300 300 300
Telephone&Internet 3,500 3,600 3,700 3,800 3,900 4,000 4,100 4,200 4,300 4,400 4,500
Sundry 112 100 100 100 100 100 100 100 100 100 100
Administrative Overhead 9,500 9,700 9,900 10,100 10,300 10,500 10,700 10,900 11,100 11,300 11,500
Expenditure-Treatment Plant - - - - - - - - - -
Lab Fees 9,800 10,000 10,200 10,400 10,600 10,800 11,000 11,200 11,400 11,600 11,800
Chemicals 7,800 8,000 8,200 8,400 8,600 8,800 9,000 9,200 9,400 9,600 9,800
Utilities Plant 64,000 65,300 66,600 67,900 69,300 70,700 72,100 73,500 75,000 76,500 78,000
Supplies-Plant 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600
Property Taxes 4,683 4,800 4,900 5,000 5,100 5,200 5,300 5,400 5,500 5,600 5,700
Building/Plant Maintenance 7,500 7,700 7,900 8,100 8,300 8,500 8,700 8,900 9,100 9,300 9,500
Equipment Maintenance-Plant 13,000 13,300 13,600 13,900 14,200 14,500 14,800 15,100 15,400 15,700 16,000
Grounds Maintenance 2,500 2,600 2,700 2,800 2,900 3,000 3,100 3,200 3,300 3,400 3,500
Sludge Haulage/Disposal 18,750 19,100 19,500 19,900 20,300 20,700 21,100 21,500 21,900 22,300 22,700
Odour Control(septage) - - - - - - - - - - -
Expenditures-Collection System - - - - - - - - - -
Truck 3,000 3,100 3,200 3,300 3,400 3,500 3,600 3,700 3,800 3,900 4,000
Supplies-Collection 900 900 900 900 900 900 900 900 900 900 900
Utilities-Collection System 27,000 27,500 28,100 28,700 29,300 29,900 30,500 31,100 31,700 32,300 32,900
Odour Control 24,000 24,500 25,000 25,500 26,000 26,500 27,000 27,500 28,100 28,700 29,300
System Maintenance 23,000 23,500 24,000 24,500 25,000 25,500 26,000 26,500 27,000 27,500 28,100
Vehicle Maintenance 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Sub Total Operating 465,768 475,400 485,100 494,900 504,900 515,000 525,200 535,600 546,300 557,100 568,100
Capital-Related
Existing Debt(Principal)-Growth Related
Existing Debt(Interest)-Growth Related
New Growth Related Debt(Principal) - - - - - - - - -New Growth Related Debt(Interest) - - - - - - - - - -
Existing Debt(Principal)-Non-Growth Related
Existing Debt(Interest)-Non-Growth Related
New Non-Growth Related Debt(Principal) - - - - - - - - -New Non-Growth Related Debt(Interest) - - - - - - - - - -
TransfertoCapital - - - - - - - - - - -
Transfer to Rate Stabilization Reserve
Transfer to Capital&Rate Stabilization Reserve 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100
Transfer to Capital Reserve -
Sub Total Capital Related 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100 185,100
Total Expenditures 650,868 660,500 670,200 680,000 690,000 700,100 710,300 720,700 731,400 742,200 753,200
Revenues
Base Charge - - - - - - - - - - -
Other Revenue - - - - - - - - -
Contributions from Development Charges Reserve Fund - - - - - - - - - - -
Contributions from Reserves/Reserve Funds - - - - - - - - - - -
Total Operating Revenue - - - - - - - - - - -
WastewaterBillingRecovery-Operating 650,868 660,500 670,200 680,000 690,000 700,100 710,300 720,700 731,400 742,200 753,200
Lifecycle Reserve Contribution($) 25,000 55,000 85,000 120,000 155,000 195,000 240,000 285,000 335,000 390,000
Wastewater Billing Recovery-Total 650,868 685,500 725,200 765,000 810,000 855,100 905,300 960,700 1,016,400 1,077,200 1,143,200
711
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Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx.xls
Table F-9
Municipality of Bayham
Wastewater Services
Wastewater Rate Forecast
Inflated$
2014 2014
Description Calculated Existing 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
'Total Wastewater Billing Recovery II 650,868 I I 685,500 I 725,200 I 765,000 I 810,000 I 855,100 I 905,300 I 960,700 I 1,016,400 I 1,077,200 I 1,143,200 I
Total Customers 1,226 1,231 1,241 1,251 1,261 1,271 1,281 1,291 1,301 1,311 1,321
Annual Flat Rate 530.89 530.88 556.86 584.37 611.51 642.35 672.78 706.71 744.15 781.25 821.66 865.40
'Monthly Flat Rate II 44.24 I 44.24 I 46.41 I 48.70 I 50.96 I 53.53 I 56.06 I 58.89 I 62.01 I 65.10 I 68.47 I 72.12
'Annual Percentage Change II I I 5%I 5%I 5%I 5%I 5%I 5%I 5%I 5%I 5%I 5%I
Table F-10
Municipality of Bayham
Wastewater Services
Wastewater Rate Forecast
Inflated$
I Description II 2014 I I 2015 2016 I 2017 I 2018 I 2019 I 2020 I 2021 I 2022 I 2023 I 2024 I
'Total Wastewater Billing Recovery II 650,868 I I 685,500 I 725,200 I 765,000 I 810,000 I 855,100 I 905,300 I 960,700 I 1,016,400 I 1,077,200 I 1,143,200 I
Total Volumes(m3) 249,257 250,252 252,242 254,232 256,222 258,212 260,202 262,192 264,182 266,172 268,162
Constant Rate 2.61 2.74 2.88 3.01 3.16 3.31 3.48 3.66 3.85 4.05 4.26
'Annual Percentage Change II I I 5%I 5%I 5%I 5%I 5%I 5%I 5%I 5%I 5%I 5%I
Watson&Associates Economists Ltd. Bayham 2014 Water and Wastewater Model 8-10-14.xlsx.xls