2016 water and wastewater rates committee of the whole november 16, 2015 presenter: mike mayes –...

2016 Water and Wastewater RatesCommittee of the Whole

November 16, 2015

Presenter: Mike Mayes – Director, Financial Services/Treasurer

2

Today’s Objectives

1. Approve 2016 water rates

2. Approve remaining 2016 fees and charges

3. Receive update to 6-year water and wastewater financial plan

3

Utility Budget Drivers

• Regional charges for water and wastewater will be increasing 9% per year

• Conservation results in lower consumption• Providing for sustainable asset replacement

– an annual increase of 8.5% • Building rate stabilization reserves• General cost increases required to maintain

health and safety

4

Regional Charges

Wholesale rate increases approved by Regional Council

2016 2017 2018 2019 2020 2021

Water 2.5% 11.7% 8.8% 12.2% 4.8% 4.6%

Wastewater 13.9% 7.2% 9.2% 6.7% 12.1% 1.6%

Combined 9.0% 9.0% 9.0% 9.0% 9.0% 2.9%

5

Consumption Trends

YEAR 2016 2017 2018 2019 2020 2021

Consumption in cubic meters per person per year

75.5 73.0 70.6 68.3 66.1 64.0

Projected population 87,519 88,421 89,331 90,251 91,181 92,100

Billable consumption in cubic meters (000’s) without new meters

6,607 6,457 6,311 6,168 6,029 5,892

Billable consumption in cubic meters (000's) with new meters

6,607 6,536 6,465 6,394 6,250 6,110

Billable consumption Growth Rate with new meters

-2.3% -1.1% -1.1% -1.1% -2.3% -2.3%

6

Sustainability Measures

• Based on analysis completed for the Capital Financing Sustainability Strategy. It is proposed to increase annual contributions by 8.5% to reach long term financial sustainability.

2015 2016 2017 2018 2019 2020 20210.00%

10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%

100.00%

55.90% 54.00% 49.40% 48.80% 50.00% 51.50% 53.10%

Capital Reserves as a % of Accumulated Amortization

7

Combined 2016 Utility Budget

2015Budget

2015 Projection

2016Budget

Revenue $32,792,152 $31,750,000 $32,843,700

Expenses:

Regional charges $18,234,184 $17,300,000 $18,320,000

Asset Replacement Fund contributions

5,611,065 5,611,065 6,099,460

Operating costs 6,986,388 7,581,362 6,862,679

Debt servicing 1,257,573 1,257,573 1,178,000

$32,089,210 $31,750,000 $32,460,139

Rate Stabilization Fund contribution

$702,942 $0 $383,561

Source: York Region 2015 Water and Wastewater Financial Sustainability Plan

Financial Sustainability

9

Rate Re-structuringComparing Newmarket Bills to the York Region Average and Median - 2014

CONSUMPTION 200m3 10,000m3 30,000m3 100,000m3

Meter Size 5/8" 2" 3" 4"

Newmarket $ 914 $ 29,256 $ 87,096 $ 289,536

Average $ 760 $ 34,313 $ 103,208 $ 343,379

Median $ 666 $ 31,475 $ 94,425 $ 314,750

The recommended rate re-structuring would shift some of the burden from low water users (mostly residential) to high water users (commercial and industrial).

10

Rate Re-structuringRecommended monthly fixed rate phase-in program

DATEJanuary 1

2016July 12016

January 12017

Base Fixed Rate $28 $28 $30.75

2" Fixed Rate $28 $112 $246.00

3" Fixed Rate $28 $210 $461.25

4" Fixed Rate $28 $350 $768.75

11

Recommended Rate Increase

Change

per 100 cubic feet

per cubic metre

per 100 cubic feet

per cubic metre

%

Combined Utility Rates

Taxable Properties $8.932 $3.153 $9.823 $3.468 10.0%

Water

Taxable properties $4.240 $1.497 $4.240 $1.497 0.0%

Non-taxable properties $4.699 $1.659 $4.699 $1.659 0.0%

Flat rate - no meter, monthly $55.043 $58.631 6.5%

Basic charge, monthly $14.000 $14.000 0.0%

Wastewater

Taxable properties $4.692 $1.656 $5.583 $1.971 19.0%

Non-taxable properties $5.042 $1.781 $6.000 $2.119 19.0%

Flat rate - no meter, monthly $53.820 $57.328 6.5%

Basic charge, monthly $14.000 $14.000 0.0%

Average Bill

Residential annual average charge 200m3 $966.60 $1,029.60 6.5%

ICI annual average charge 835m3$2,968.76 $3,231.78 8.9%

Current 2015 Rates 2016 Rates

12

Next Steps

For November 23 CoW on the budget:• Further deliberation if required

For November 30 Council:• Approval of water, planning, fire, general and

building

Date and format to be determined• Further discussion and possible workshop on the

updates for the 6-year Water and Wastewater Financial Plans

Thank You