Phoebe Fu, Director of Environmental Services, and Aziz Asif, Senior Financial Analyst provided a presentation on the proposed 2021 Water and Wastewater Rate.
Staff provided the following responses to inquiries from Members of Council:
York Region Water and Wastewater Rate
The City’s water and wastewater rate cannot be finalized until York Region’s rate is known, as the rate is determined by combining York Region, and Markham’s rate. York Region’s water and wastewater rate is projected to be 2.9%, based on its 2015 Water Study.
Waterworks Reserve
The goal of the City’s Waterworks Reserve study update is ensure that there is sufficient funds in the reserve for the next 25 years based on known inflows and outflows.
Replacement of Water Infrastructure
Every year the City replaces 2-5 km of watermains per year. Currently, most of the work is being done in West Thornhill.
Water Leakage
The City estimates that its ILI (Leakage Index) is around 1.25 per year, which is better than most municipalities. An ILI close to one is considered world class.
Water Theft
It is estimated that water theft remains at approximately 0.3%. Some water hydrants continue to have the reflective rings on them.
Cost of Water
The cost of water has increased as a result to: 1) significant regulatory changes due to drinking water contamination in Walkerton, Ontario in 2000, 2) Asset management / maintain infrastructure state of good repairs requirements, and 3) increased labour and construction costs over the years.
Financial Modeling
Staff agreed to provide Council with a financial forecast reflecting:
- 9% York Region water rate increase flow through to the City of Markham
- 0% increase for Non-Revenue Water, Operating Expenditures and Reserve Contribution
- 5 and 10 year recovery for 2020 and 2021 impact starting in 2022