Report to: General Committee – Finance & Administrative Date of Meeting: February 2, 2011

 

 

SUBJECT:                         2011 Water/Wastewater Rate Increase

PREPARED BY:              Andrea Tang, Manager of Financial Planning

 

 

RECOMMENDATION:

That the report dated February 2, 2011 entitled “2011 Water/Wastewater Rate Increase” be received;

 

AND THAT the Minutes of the Public Meeting held on February 1, 2011, with respect to the proposed 2011 Water/Wastewater Rate Increase be received;

 

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 and directed to do things necessary to give effect to this resolution.

 

PURPOSE:

The purpose of the report is to obtain approval to increase the Town of Markham’s Water/Wastewater rate by $0.2035/m3 from $2.2129/m3 to $2.4164/m3.

 

BACKGROUND:

 

At the January 17th, 2011 General Committee, Staff brought forward a report entitled “Proposed 2011 Water/Wastewater Rate Increase” proposing a Water & Wastewater rate increase of $0.2035/m3 from $2.2129/m3 to $2.4164/m3 effective April 1, 2011.  In addition, Staff obtained approval to hold a public meeting on February 1, 2011.

 

At the public meeting on February 1, 2011, a deputation was made by a resident regarding the affordability of the rate increase.

 

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 Water/Wastewater rate will be increased by $0.2035/m3 from $2.2129/m3 to $2.4164/m3.  The breakdown of the 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: 

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ATTACHMENT:

Minutes – February 1, 2011 Public Meeting