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HomeMy WebLinkAboutJune 20, 2024 - Council - AddendumTHE CORPORATION OF THE MUNICIPALITY OF BAYHAM COUNCIL MEETING ADDENDUM Thursday, June 20, 2024 5. A Watson & Associates Economists Ltd. re Water and Wastewater Rate Study Council Presentation June 20, 2024 Municipality of Bayham Water and Wastewater Rate Study Areas of Discussion •Study Purpose •Legislation for Water and Wastewater; •Existing and Forecasted Customers and Volumes; •Capital Needs, Lifecycle Costs, and Financing; •Operating Expenditures; •Wastewater Rates; •Water Rate Scenarios; and •Next Steps.1 Study Purpose •Identify all current and future water and wastewater system capital needs; •Identify cost recovery options for capital; •Estimate future operating costs over the next 10 years; and •Recommend new rates to recover the cost of the water and wastewater systems. 2 Legislation for Water and Wastewater •Since Walkerton, new legislation has been passed by the Province to enhance the provision of services. These include the following: •Safe Drinking Water Act; •Sustainable Water and Sewage Systems Act; •O.Reg. 453/07 -Safe Drinking Water Act; •Clean Water Act; and •Water Opportunities Act. •Further Requirements: •Municipal Infrastructure Strategy •Infrastructure for Jobs and Prosperity Act, 2015 3 Full Cost Recovery 2024 Rates 4 All Meters 14.26 All Meters 56.34 4.180$ per m 3 4.180$ per m 3 2024 - Water Billing Rates Volume Charge Monthly Base Charge - Port Burwell and Vienna 2024 - Water Billing Rates Monthly Base Charge - Richmond Volume Charge All Customers 58.92 2024 - Wastewater Billing Rates Monthly Flat Rate Customer Profile 5 Metered Water - Bayham Water - Richmond Wastewater (Port Burwell, Vienna, Straffordville and Eden) All Meters 849 61 1,310 Total 849 61 1,310 Water Users Forecast -Bayham 6 Year Total Users 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2024 10 5 10 10 10 10 10 10 10 10 10 2025 10 5 10 10 10 10 10 10 10 10 2026 10 5 10 10 10 10 10 10 10 2027 10 5 10 10 10 10 10 10 2028 10 5 10 10 10 10 10 2029 10 5 10 10 10 10 2030 10 5 10 10 10 2031 10 5 10 10 2032 10 5 10 2033 10 5 Total 100 5 15 25 35 45 55 65 75 85 95 m3/user 155 155 155 155 155 155 155 155 155 155 155 Annual Flow 775 2,325 3,875 5,425 6,975 8,525 10,075 11,625 13,175 14,725 Water Customer Forecast 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Existing 849 849 849 849 849 849 849 849 849 849 New - Growth 5 15 25 35 45 55 65 75 85 95 Total 854 864 874 884 894 904 914 924 934 944 Water Volume Forecast (m³)2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Port Burwell and Vienna Existing 131,199 131,199 131,199 131,199 131,199 131,199 131,199 131,199 131,199 131,199 New 775 2,325 3,875 5,425 6,975 8,525 10,075 11,625 13,175 14,725 Total 131,974 133,524 135,074 136,624 138,174 139,724 141,274 142,824 144,374 145,924 Water Users Forecast -Richmond 7 Year Total Users 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2024 0 - - - - - - - - - - 2025 0 - - - - - - - - - 2026 0 - - - - - - - - 2027 0 - - - - - - - 2028 0 - - - - - - 2029 0 - - - - - 2030 0 - - - - 2031 0 - - - 2032 0 - - 2033 0 - Total 0 - - - - - - - - - - m3/user 176 176 176 176 176 176 176 176 176 176 176 Annual Flow - - - - - - - - - - Water Customer Forecast 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Existing 61 61 61 61 61 61 61 61 61 61 New - Growth - - - - - - - - - - Total 61 61 61 61 61 61 61 61 61 61 Water Volume Forecast (m³)2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Richmond Existing 10,766 10,766 10,766 10,766 10,766 10,766 10,766 10,766 10,766 10,766 New - - - - - - - - - - Total 10,766 10,766 10,766 10,766 10,766 10,766 10,766 10,766 10,766 10,766 Wastewater Users Forecast 8 Year Total Users 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2024 15 8 15 15 15 15 15 15 15 15 15 2025 15 8 15 15 15 15 15 15 15 15 2026 15 8 15 15 15 15 15 15 15 2027 15 8 15 15 15 15 15 15 2028 15 8 15 15 15 15 15 2029 15 8 15 15 15 15 2030 15 8 15 15 15 2031 15 8 15 15 2032 15 8 15 2033 15 8 Total 150 8 23 38 53 68 83 98 113 128 143 m3/user 192 192 192 192 192 192 192 192 192 192 192 Annual Flow 1,536 4,416 7,296 10,176 13,056 15,936 18,816 21,696 24,576 27,456 Wastewater Customer Forecast 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Existing 1,310 1,310 1,310 1,310 1,310 1,310 1,310 1,310 1,310 1,310 New - Growth 8 23 38 53 68 83 98 113 128 143 Total 1,318 1,333 1,348 1,363 1,378 1,393 1,408 1,423 1,438 1,453 Wastewater Flows Forecast (m³)2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Existing 251,357 251,357 251,357 251,357 251,357 251,357 251,357 251,357 251,357 251,357 New 1,536 4,416 7,296 10,176 13,056 15,936 18,816 21,696 24,576 27,456 Total 252,893 255,773 258,653 261,533 264,413 267,293 270,173 273,053 275,933 278,813 Capital Infrastructure 9 •Capital needs were identified based on the 2024 capital budget, the 10-year capital forecast, and the review of capital infrastructure replacement needs (lifecycle). •Capital works were identified by •Need; •Timing; and •Costs. Water System Capital Needs 2024 –2033 (Inflated $) 10 Water Financial Plan 17,500 2024 Booster Upgrades 67,000 2025 Pickup Truck 33,000 2027 Vac Unit 52,000 2027 Bayham water system -fire 76,000 2028 Bayham Water Lines 1,801,000 2028 PBSS Capital 16,883,000 2028 Water Financial Plan 20,000 2029 Watermain Re-insulation 58,000 2029 Bayham water system -fire 78,000 2029 Pickup Truck 35,000 2029 Water Meter Replacement 388,000 2030 Water Meter Replacement 400,000 2031 Pickup Truck 37,000 2031 Water Chamber Rehab 32,000 2032 Water Chamber Rehab 33,000 2033 Total Capital Expenditures 20,010,500 Description Total 2024 to 2033 Years Undertaken Bayham System Richmond System Equipment - Richmond 15,000 2024 Richmond Well Review 20,000 2024 Richmond Well Review 23,000 2029 Total Capital Expenditures 58,000 Description Total 2024 to 2033 Years Undertaken Wastewater System Capital Needs 2024 –2033 (Inflated $) 11 System Equipment 45,000 2024 Forcemain 10,000 2024 Water Financial Plan 17,500 2024 Manhole rehab 25,000 2024 Switch Upgrades 32,000 2024 Eden PS Up 250,000 2024 System Equipment 46,000 2025 Air Blowers 28,000 2025 Wastewater Sampler 29,000 2025 Manhole rehab 26,000 2025 Parking Lot 67,000 2025 Manhole rehab 27,000 2026 System Equipment 21,000 2026 Wastewater treatment plant land 530,000 2026 Pickup truck 33,000 2027 Vac Unit 52,000 2027 Communication tower 82,000 2027 Manhole rehab 27,000 2027 WWTP EA 164,000 2027 WWTP Eng 382,000 2027 System Equipment 51,000 2028 Description Total 2024 to 2033 Years Undertaken Manhole rehab 28,000 2028 System Equipment 52,000 2029 Manhole rehab 29,000 2029 Water Financial Plan 20,000 2029 Pickup Truck W-02 35,000 2029 WWTP 17,389,000 2029 System Equipment 54,000 2030 Manhole rehab 30,000 2030 WWTP 17,911,000 2030 System Equipment 55,000 2031 Manhole rehab 31,000 2031 Manhole rehab 32,000 2032 Manhole rehab 33,000 2033 Forcemain Chamber 104,000 2033 Total Capital Expenditures 37,747,500 Description Total 2024 to 2033 Years Undertaken Lifecycle Infrastructure Costs 12 •The age of the water system dates back to the mid 1970’s; •The age of the wastewater system dates back to the early 1980’s; •The total value of existing water infrastructure is $26.78 million; •The total value of existing wastewater infrastructure is $55.85 million; Area Total Replacement Value Suggested amount to be included in 10- year forecast based on estimated life Amount included in 10-year forecast (excluding Studies and PBSS) Net Replacement for Future Lifecycle Annual Lifecycle Replacement Water Water Facilities 624,400 213,500 25,145 Hydrants, Curbstops, Valves, and Meters 2,871,100 - 192,098 Watermains 23,279,800 - 907,837 Total Water 26,775,300 213,500 3,105,000 23,670,300 1,125,080 Wastewater Wastewater Facilities 13,859,700 4,402,900 546,073 Wastewater Valves 353,100 - 38,162 Wastewater Vehicles 202,000 202,000 - Wastewater Sewers 41,432,700 - 1,401,859 Total Wastewater 55,847,500 4,604,900 36,818,000 19,029,500 1,986,095 Total 82,622,800 4,818,400 39,923,000 42,699,800 3,111,174 Investment per customer is $29,423 for water and $42,632 for wastewater 3,105,000 36,818,000 23,670,300 19,029,500 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 Total Replacement Cost (2024$)Year Hydrants, Curbstops, Valves, and Meters Watermains Water Facilities Replacement Forecast of Water Assets by Year (2024$) 13 Replacement Forecast of Wastewater Assets by Year (2024$) 14 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 Total Replacement Cost (2024$)Year Wastewater Vehicles Wastewater Valves Wastewater Sewers Wastewater Facilities Capital Financing Options 15 Reserves Operating Budget Transfers (Funding Reserves) Grants Debt •Development Charges •Municipal Act (Part 12) Reserve Balances –As of December 31, 2023 16 Reserve Dec. 31 2023 Capital Reserve 733,096 Development Charges Reserve Fund 19,268 Water Reserve Dec. 31 2023 Capital Reserve 3,230,990 Development Charges Reserve Fund 59,343 Wastewater Proposed Capital Financing Programs 2024 to 2033 -Wastewater 17 Provincial/Federal Grants 35,300,000 Development Charges Reserve Fund - Non-Growth Related Debenture Requirements - Growth Related Debenture Requirements - Operating Contributions - Wastewater Reserve 2,447,500 Total Capital Financing 37,747,500 Capital Financing Wastewater Operating Budgets 18 •Purchased Water rates are anticipated to increase by 5% per year (based on the rate forecast of the Secondary System) •All other operating expenditures are assumed to increase by 3% per year Wastewater Operating Budget 19 Description 2025 2026 2027 2028 2029 2030 2031 2032 2033 Operating Costs 734,905 757,400 780,000 803,300 827,500 852,200 877,700 903,900 930,900 Capital Related 293,393 311,262 330,663 350,868 371,870 394,103 417,298 417,588 419,080 Total 1,028,297 1,068,662 1,110,663 1,154,168 1,199,370 1,246,303 1,294,998 1,321,488 1,349,980 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 Capital Related Operating Costs Wastewater Rate Summary 20 Description 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Monthly Flat Rate $58.92 $60.69 $62.51 $64.39 $66.32 $68.31 $70.36 $72.47 $74.64 $76.88 Total Annual Bill $707.04 $728.28 $750.12 $772.68 $795.84 $819.72 $844.32 $869.64 $895.68 $922.56 Municipality of Bayham Water Rate Scenarios 21 Water Rate Scenarios 22 •Through working with Staff, we have calculated 2 water rate scenarios: 1.Scenario 1 –Full Cost Recovery with zero debt 2.Scenario 2 –Full Cost Recovery with debt •These scenarios aim to provide the Municipality with Full Cost recovery of the Water Systems, which are in line with the 2023 Strategic Plan. •The scenarios also provide a similar level of reserve balances by 2033. These balances will assist the Municipality with future lifecycle requirements and capital needs. •Under both scenarios, the Wastewater Rates remain the same as presented in the earlier slides. Proposed Capital Financing Programs –Water 23 2024-2033 (Inflated $) Scenario 2 -Full Cost Recovery with Debt Scenario 1 –Full Cost Recovery with Zero Debt Bayham Richmond 2024-2033 2024-2033 Capital Financing Provincial/Federal Grants or Owned Source Revenues 16,883,000 - Development Charges Reserve Fund - - Non-Growth Related Debenture Requirements 877,000 - Growth Related Debenture Requirements - - Operating Contributions - - Water Reserve 2,250,500 58,000 Total Capital Financing 20,010,500 58,000 Description Bayham Richmond 2024-2033 2024-2033 Capital Financing Provincial/Federal Grants or Owned Source Revenues 16,883,000 - Development Charges Reserve Fund - - Non-Growth Related Debenture Requirements - - Growth Related Debenture Requirements - - Operating Contributions - - Water Reserve 3,127,500 58,000 Total Capital Financing 20,010,500 58,000 Description Scenario 1 –Full Cost Recovery with Zero Debt 24 •Bayham Base Charges are increased from $14.26 to $42.78 per month in 2025 and increased by 3% per year for the remainder of the forecast period. •Richmond Base Charges are increased by 3% per year over the 2024 to 2033 forecast period. •The Volume Rates are increased from $4.18 to $4.55 per m3 in 2025 and increased by 5% per year for the remainder of the forecast period. •These increases will: •Result in $0 of debt requirements •Provide for positive water reserve fund balances annually over the forecast period •The water reserve balance at the end of 2033 is estimated to be $935,000 •The scenario provides for the full cost recovery of the operating and capital program, as well as debt capacity for other purposes Scenario 1 –Water Operating Budget (Combined) 25 Description 2025 2026 2027 2028 2029 2030 2031 2032 2033 Operating Costs 868,889 913,953 961,319 1,011,418 1,064,009 1,119,348 1,177,692 1,238,900 1,304,831 Capital Related 300,107 315,515 331,532 345,538 362,430 381,240 400,391 421,531 441,453 Total 1,168,996 1,229,468 1,292,851 1,356,957 1,426,439 1,500,587 1,578,083 1,660,431 1,746,284 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 Capital Related Operating Costs Scenario 1 -Residential Annual Bill Forecast 26 Based on Annual Volumes of 155 m3 Description 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Monthly Base Rate $14.26 $42.78 $44.06 $45.38 $46.74 $48.14 $49.58 $51.07 $52.60 $54.18 Constant Rate $4.18 $4.55 $4.78 $5.02 $5.27 $5.53 $5.81 $6.10 $6.41 $6.73 Annual Base Rate Bill $171.12 $513.36 $528.72 $544.56 $560.88 $577.68 $594.96 $612.84 $631.20 $650.16 Volume 155 155 155 155 155 155 155 155 155 155 Annual Volume Bill $647.90 $705.25 $740.90 $778.10 $816.85 $857.15 $900.55 $945.50 $993.55 $1,043.15 Total Annual Bill $819.02 $1,218.61 $1,269.62 $1,322.66 $1,377.73 $1,434.83 $1,495.51 $1,558.34 $1,624.75 $1,693.31 Water Rate Summary - Bayham Annual Customer Water Bill - Based on 155 m³ of usage Description 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Monthly Base Rate $56.34 $58.03 $59.77 $61.56 $63.41 $65.31 $67.27 $69.29 $71.37 $73.51 Constant Rate $4.18 $4.55 $4.78 $5.02 $5.27 $5.53 $5.81 $6.10 $6.41 $6.73 Annual Base Rate Bill $676.08 $696.36 $717.24 $738.72 $760.92 $783.72 $807.24 $831.48 $856.44 $882.12 Volume 155 155 155 155 155 155 155 155 155 155 Annual Volume Bill $647.90 $705.25 $740.90 $778.10 $816.85 $857.15 $900.55 $945.50 $993.55 $1,043.15 Total Annual Bill $1,323.98 $1,401.61 $1,458.14 $1,516.82 $1,577.77 $1,640.87 $1,707.79 $1,776.98 $1,849.99 $1,925.27 Water Rate Summary - Richmond Annual Customer Water Bill - Based on 155 m³ of usage Scenario 1 -Residential Annual Bill Impact 27 Based on Annual Volumes of 155 m3 Description 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Water Bill $819.02 $1,218.61 $1,269.62 $1,322.66 $1,377.73 $1,434.83 $1,495.51 $1,558.34 $1,624.75 $1,693.31 Total Wastewater Bill $707.04 $728.28 $750.12 $772.68 $795.84 $819.72 $844.32 $869.64 $895.68 $922.56 Total Combined Bill $1,526.06 $1,946.89 $2,019.74 $2,095.34 $2,173.57 $2,254.55 $2,339.83 $2,427.98 $2,520.43 $2,615.87 Annual Bill Increase 420.83$ 72.85$ 75.60$ 78.23$ 80.98$ 85.28$ 88.15$ 92.45$ 95.44$ Monthly Bill Increase 35.07$ 6.07$ 6.30$ 6.52$ 6.75$ 7.11$ 7.35$ 7.70$ 7.95$ Annual Customer Combined Water and Wastewater Bill - Based on 155 m³ of usage - Bayham Description 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Water Bill $1,323.98 $1,401.61 $1,458.14 $1,516.82 $1,577.77 $1,640.87 $1,707.79 $1,776.98 $1,849.99 $1,925.27 Annual Bill Increase 77.63$ 56.53$ 58.68$ 60.95$ 63.10$ 66.92$ 69.19$ 73.01$ 75.28$ Monthly Bill Increase 6.47$ 4.71$ 4.89$ 5.08$ 5.26$ 5.58$ 5.77$ 6.08$ 6.27$ Annual Customer Water Bill - Based on 155 m³ of usage - Richmond Scenario 2 –Full Cost Recovery with Debt 28 •Bayham Base Charges are calculated to increase to match the Richmond Base Charges by 2030. •This results in a 2025 increase from $14.26 to $24.47 per month and increasing by $10.21 per year until 2030 (where it equals Richmond at $75.51 per month). •The base charges are then increased by 5% per year for the remainder of the forecast period. •Richmond Base Charges are increased by 5% per year over the 2024 to 2033 forecast period. •The Volume Rates are calculated to decrease from $4.18 to $3.64 per m3 in 2025 to match the Secondary System buy rate. This is increased by 5% per year for the remainder of the forecast period. •These increases will: •Result in $877,000 of debt requirements in 2028 •Provide for positive water reserve fund balances annually over the forecast period •The water reserve balance at the end of 2033 is estimated to be $1,235,000 Scenario 2 –Water Operating Budget (Combined) 29 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 Capital Related Operating Costs Description 2025 2026 2027 2028 2029 2030 2031 2032 2033 Operating Costs 868,889 913,953 961,319 1,011,418 1,064,009 1,119,348 1,177,692 1,238,900 1,304,831 Capital Related 8,481 78,817 180,103 280,995 386,387 493,785 531,699 572,070 614,959 Total 877,370 992,770 1,141,422 1,292,413 1,450,396 1,613,133 1,709,391 1,810,970 1,919,790 Scenario 2 -Residential Annual Bill Forecast 30 Based on Annual Volumes of 155 m3 Description 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Monthly Base Rate $14.26 $24.47 $34.68 $44.89 $55.09 $65.30 $75.51 $79.29 $83.25 $87.41 Constant Rate $4.18 $3.64 $3.82 $4.01 $4.21 $4.42 $4.64 $4.87 $5.11 $5.37 Annual Base Rate Bill $171.12 $293.62 $416.12 $538.62 $661.12 $783.62 $906.12 $951.48 $999.00 $1,048.92 Volume 155 155 155 155 155 155 155 155 155 155 Annual Volume Bill $647.90 $564.20 $592.10 $621.55 $652.55 $685.10 $719.20 $754.85 $792.05 $832.35 Total Annual Bill $819.02 $857.82 $1,008.22 $1,160.17 $1,313.67 $1,468.72 $1,625.32 $1,706.33 $1,791.05 $1,881.27 Water Rate Summary - Bayham Annual Customer Water Bill - Based on 155 m³ of usage Description 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Monthly Base Rate $56.34 $59.16 $62.12 $65.23 $68.49 $71.91 $75.51 $79.29 $83.25 $87.41 Constant Rate $4.18 $3.64 $3.82 $4.01 $4.21 $4.42 $4.64 $4.87 $5.11 $5.37 Annual Base Rate Bill $676.08 $709.92 $745.44 $782.76 $821.88 $862.92 $906.12 $951.48 $999.00 $1,048.92 Volume 155 155 155 155 155 155 155 155 155 155 Annual Volume Bill $647.90 $564.20 $592.10 $621.55 $652.55 $685.10 $719.20 $754.85 $792.05 $832.35 Total Annual Bill $1,323.98 $1,274.12 $1,337.54 $1,404.31 $1,474.43 $1,548.02 $1,625.32 $1,706.33 $1,791.05 $1,881.27 Water Rate Summary - Richmond Annual Customer Water Bill - Based on 155 m³ of usage Scenario 2 -Residential Annual Bill Impact 31 Based on Annual Volumes of 155 m3 Description 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Water Bill $819.02 $857.82 $1,008.22 $1,160.17 $1,313.67 $1,468.72 $1,625.32 $1,706.33 $1,791.05 $1,881.27 Total Wastewater Bill $707.04 $728.28 $750.12 $772.68 $795.84 $819.72 $844.32 $869.64 $895.68 $922.56 Total Combined Bill $1,526.06 $1,586.10 $1,758.34 $1,932.85 $2,109.51 $2,288.44 $2,469.64 $2,575.97 $2,686.73 $2,803.83 Annual Bill Increase 60.04$ 172.24$ 174.51$ 176.66$ 178.93$ 181.20$ 106.33$ 110.76$ 117.10$ Monthly Bill Increase 5.00$ 14.35$ 14.54$ 14.72$ 14.91$ 15.10$ 8.86$ 9.23$ 9.76$ Annual Customer Combined Water and Wastewater Bill - Based on 155 m³ of usage - Bayham Description 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Water Bill $1,323.98 $1,274.12 $1,337.54 $1,404.31 $1,474.43 $1,548.02 $1,625.32 $1,706.33 $1,791.05 $1,881.27 Annual Bill Increase 49.86-$ 63.42$ 66.77$ 70.12$ 73.59$ 77.30$ 81.01$ 84.72$ 90.22$ Monthly Bill Increase 4.16-$ 5.29$ 5.56$ 5.84$ 6.13$ 6.44$ 6.75$ 7.06$ 7.52$ Annual Customer Water Bill - Based on 155 m³ of usage - Richmond Comparison of Monthly Residential Bill 32 Monthly Residential Bill -Bayham Monthly Residential Bill -Richmond Based on Annual Volumes of 155 m3 Scenario 2 - Bayham 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Monthly Water Bill $68.25 $71.49 $84.02 $96.68 $109.47 $122.39 $135.44 $142.19 $149.25 $156.77 Total Monthly Wastewater Bill $58.92 $60.69 $62.51 $64.39 $66.32 $68.31 $70.36 $72.47 $74.64 $76.88 Total Combined Monthly Bill $127.17 $132.18 $146.53 $161.07 $175.79 $190.70 $205.80 $214.66 $223.89 $233.65 Monthly Bill Increase 5.00$ 14.35$ 14.54$ 14.72$ 14.91$ 15.10$ 8.86$ 9.23$ 9.76$ Scenario 1 - Bayham 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Monthly Water Bill $68.25 $101.55 $105.80 $110.22 $114.81 $119.57 $124.63 $129.86 $135.40 $141.11 Total Monthly Wastewater Bill $58.92 $60.69 $62.51 $64.39 $66.32 $68.31 $70.36 $72.47 $74.64 $76.88 Total Combined Monthly Bill $127.17 $162.24 $168.31 $174.61 $181.13 $187.88 $194.99 $202.33 $210.04 $217.99 Monthly Bill Increase 35.07$ 6.07$ 6.30$ 6.52$ 6.75$ 7.11$ 7.35$ 7.70$ 7.95$ Scenario 1 - Richmond 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Monthly Water Bill $110.33 $116.80 $121.51 $126.40 $131.48 $136.74 $142.32 $148.08 $154.17 $160.44 Monthly Bill Increase 6.47$ 4.71$ 4.89$ 5.08$ 5.26$ 5.58$ 5.77$ 6.08$ 6.27$ Scenario 2 - Richmond 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Monthly Water Bill $110.33 $106.18 $111.46 $117.03 $122.87 $129.00 $135.44 $142.19 $149.25 $156.77 Monthly Bill Increase 4.16-$ 5.29$ 5.56$ 5.84$ 6.13$ 6.44$ 6.75$ 7.06$ 7.52$ Comparison of Residential Annual Combined Water and Wastewater Bill (Based on 155 m3) 33 $1,147 $640 $1,219 $929 $751 $872 $827 $688 $684 $819 $1,402 $1,324 $1,203 $687 $547 $534 $420 $1,212 $1,604 $728 $932 $911 $693 $728 $856 $854 $707 $371 $420 $315 $357 $- $500 $1,000 $1,500 $2,000 $2,500 Water Wastewater Municipality of Bayham Water and Wastewater Financial Plan O.Reg. 453/07 34 5 Requirements for the Municipal Drinking Water Licence 1.Drinking Water Works Permit (DWWP) 2.Accepted Operational Plan, based on the Drinking Water Quality Management Standard (DWQMS) 3.Accreditation of the Operating Authority 4.Financial Plan 5.Permit to Take Water (PTTW) 35 Ontario Regulation 453/07 Water Financial Plan •All municipalities providing water service are required to be licensed to operate the water system(s) •Part of the licensing requirement is for the municipality to submit a Financial Plan to the Province •The Financial Plan will be presented to Council as part of rate study presentation 36 Summary of O.Reg. 453/07 Requirements •The plan is considered a living document but will need to be undertaken at a minimum every five years •The plans are generally consistent with the "Watson" Approach in forecasting the capital, operating and reserve fund positions, providing detailed inventories, forecasting future volumes and calculation of the rates. •The additional requirements include the PSAB information for each year of the forecast (i.e. total non-financial assets, tangible capital assets acquisitions, tangible capital asset construction, betterments, write downs, disposals, total liabilities and net debt) •The financial plans must be made available upon request to the public (without charge) and on the municipality's web site. The availability of this information must also be advertised 37 What Does All of This Mean? •Reporting is mandatory for Water and encouraged for Wastewater services (for this process, we are undertaking both the water and wastewater financial plans) •The intent of the legislation is for: 1.municipalities to project future activities for capital (including inventory renewal), operating, reserves and customers (and usage) and then 2.report it to the Province in PSAB 3150 financial statement format (projected into the future) •The Rate study provides the basis projecting the financial information on which the O. Reg. report will be prepared 38 Rate Study vs. O.Reg 453.07 Reporting Format 39 Matters for Council’s Consideration 1.Consider the Capital Program; 2.Consider the Operating Program; 3.Consider the Proposed Water Rates; and 4.Consider the Proposed Wastewater Rates. 5.Finalize the Rate Study and Financial Plan based on the rates approved by Council 6.Approve and submit the Financial Plan to the Province as part of the Municipality’s Water Licence Renewal 40 Questions 41 Questions?