Report to: General Committee – Finance & Administrative Date of Meeting: 2011-01-17
SUBJECT: Proposed 2011 Water/Wastewater
Rate Increase
PREPARED BY: Andrea
Tang, Manager of Financial Planning
RECOMMENDATION:
That the report dated
January 17, 2011 entitled “Proposed 2011 Water/Wastewater Rate Increase” be
received;
AND THAT staff be authorized to hold a public meeting
on February 1, 2011 at 6:45p.m. on the proposed 2011 Water/Wastewater rate
increase;
AND THAT the 2011 Town of Markham’s (“Town”) Water/Wastewater
rate increase be equivalent to the Region of York’s (“Region”) monetary increase
of $0.1352 per cubic metre (m3) based on Region’s estimated increase
of 10%;
AND THAT in addition to the Region’s increase, the 2011
Water/Wastewater rate increase includes a surcharge of $0.0683/m3;
AND THAT effective April 1, 2011, the 2011 Water/Wastewater rate will be $2.4164/m3, an increase of $0.2035/m3.
AND THAT Staff be authorized to present the “2011
Proposed Water/Wastewater Rates” presentation (Appendix A) at the February 1,
2011 Public Meeting.
The purpose of the report is to obtain approval:
1.
to hold a public meeting on February
1, 2011 at 6:45p.m. to discuss the 2011 proposed Water/Wastewater rate increase;
2.
to increase the Town of
Markham’s Water/Wastewater rate by $0.2035/m3 from $2.2129/m3
to $2.4164/m3.
Markham owns and operates the water and wastewater system, and
purchases water supply and wastewater treatment from the Region of York. Region of York purchases water from the City
of Toronto and the Region of Peel. Region
of York’s current wholesale rate is $1.3521/m3 and Markham’s current
retail rate is $2.2129/m3.
Revenues are used to fund regional purchases (i.e. water and wastewater
costs) and Waterworks costs (i.e. operating and capital).
As in previous
years, a public meeting will be held before passing a by-law imposing a
Water/Wastewater fee or charge. The
public meeting will be held on February 1, 2011 at 6:45p.m. to discuss the 2011
proposed Water/Wastewater rate increase.
Similar to previous years, following approval of this report, staff will
advertise notice of the public meeting via the “Town Page” in local newspapers
and the Town’s webpage.
OPTIONS/DISCUSSIONS:
Region’s Increase
The York
Region report dated December 18, 2008 identified a 10% increase in the 2011
water and wastewater rates based on a multi-year plan. Each year, the increase as identified in the
plan is reviewed and confirmed by Regional Council as part of the budget
process. A presentation was made to
Regional Council on the estimated rate increase in December 2010. A report on the 2011 Regional rate increase
will be brought forward to Regional Council for approval in February 2011.
Therefore, as
per the Town’s policy, the Town will match the Region’s monetary increase of
$0.1352/m3 based on Region’s forecasted increase of 10%.
Water/Wastewater Surcharge
In addition to the Region’s estimated
increase, the 2011 rate will include a surcharge of $0.0683/m3 that
comprises of the followings:
The fourth
year of the approved 10 year phase-in of the Water/Wastewater Infrastructure
Surcharge to address the ongoing replacement & rehabilitation requirements
for Waterworks infrastructure;
Cost
increases due to inflation;
Population
growth adjustment
FINANCIAL
CONSIDERATIONS:
The 2011 proposed Water/Wastewater rate
will be increased by $0.2035/m3 from $2.2129/m3 to
$2.4164/m3. The breakdown of the
proposed 2011 rate is outlined below:
TABLE A – Water/Wastewater
Rate
Impact
to Residents & Industrial, Commercial and Institutional (ICI) Customers
An average household has water
consumption of 300m3
per year. With a total increase of $0.2035/m3 (Region’s
estimated increase of $0.1352 and Town’s increase of $0.0683) in 2011, there will be an annual increase of approximately $61.05 to an
average household bill. The impact on
the top 10 ICI customers, including a health care provider, manufacturers, and
hospitality providers, will range from $11K to $31K per year (Region’s
estimated increase $7K to $18K and the Town’s increase $4K to $13K).
RECOMMENDED BY:
Attachment:
Appendix A – 2011 Proposed Water/Wastewater Rates Public
Meeting Presentation
COMMITTEE/COUNCIL
ITEM TRACKING FORM
Revised: September 2009
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COUNCIL
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DEVELOPMENT SERVICES
Planning
Economic
Dev.
Transportation
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GENERAL
Community
Services
Environment
& Sustainability
Finance
& Administrative
Lands,
Building & Parks Construction
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TARGET MEETING DATE
January
17, 2011
|
DATE REPORT AUTHORED
January 5, 2011
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ITEM TITLE
2011
Proposed Water & Wastewater Rate Increase
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AGENDA SECTION
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TIME TO BE ALLOCATED
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Presentation/Deputation
Consent Regular
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5 minutes
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CONFIDENTIAL REPORTS
For in
camera reports, please indicate appropriate subsection of s239(2) Municipal Act (√ all
applicable):
(a)
Security of Property (e) Litigation or potential litigation
(b)
Personal matters about individual (f) Solicitor-client
privilege
(c)
Acquisition/disposition of land (g) Legislated
authority to be in camera
(d) Labour
relations/Employee negotiations
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ORIGINATOR: Andrea Tang Ext. 2433
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CONTACT: Andrea Tang Ext. 2433
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DOES
THE REPORT, PRESENTATION, BY-LAW AFFECT OTHER DEPTS:
Yes No (List all departments impacted and being
consulted on this report.)
Electronic
Approval Required by:
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Department
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Individual
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Obtained
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Finance
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Joel Lustig
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Finance
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Andy Taylor
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CAO’s Office
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John Livey
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Attachments:
Comments
& Questions:
Q:\Finance\Executive Staff\Sharepoint Reports\2011
Water Wastewater Rate Increase_V3.Doc