Paying A Fair Rate
Notice Regarding New
WATER & SEWER RATES

Council Meetings (Open Session)




June 18, 2007 – Special Meeting
August 13, 2007
September 10, 2007
November 13, 2007

Several articles in the Glengarry News

Advertisements



November 2, 2007 – Standard Freeholder
November 7, 2007 – Glengarry News
Today’s Meeting – February 11, 2008
Flyer
OWNERS and TENANTS




2007
Flat Rate Service Fee
Rate for water
Rate for sewage
Minimum consumption
Total/Year
0
.8445
.6335
147.80
$295.60




2008
Flat Rate Service Fee
Rate for water
Rate for sewage
Minimum consumption
TOTAL PER YEAR
170
1.60
1.20
225.00
$790.00
CORRECTIONS
OWNERS and TENANTS




2007
Flat Rate Service Fee
0
Rate for water
.8445
1.45
Rate for sewage .6335
1.09
Minimum consumption
147.80
Total/Year
$295.60




2008
Flat Rate Service Fee
Rate for water
Rate for sewage
Minimum consumption
Total/Year
170
1.60
1.20
225.00
$790.00
CORRECTIONS
OWNERS and TENANTS




2007
Flat Rate Service Fee
0
Rate for water
.8445
1.45
Rate for sewage .6335
1.09
Minimum consumption
147.80
Total/Year
$295.60
2007 Glen Walter
$603.76




2008
Flat Rate Service Fee
Rate for water
Rate for sewage
Minimum consumption
TOTAL PER YEAR
170
1.60
1.20
225.00
$790.00
HOW DO WE COMPARE?
“Mr. Sitland (Pembrooke Operations Manager) said in
a survey of 80 municipalities, the average rate as of
2006 was $756 per year”
- The Daily Observer
Adjusted to 2008
=
$785
Flyer
OWNERS and TENANTS




2007
Flat Rate Service Fee
Rate for water
Rate for sewage
Minimum consumption
Total/Year
0
1.45
1.09
147.80
$295.60




2008
Flat Rate Service Fee
Rate for water
Rate for sewage
Minimum consumption
TOTAL PER YEAR
170
1.60
1.20
225.00
$790.00
Ont. Residential Avg.
$785.00
City of Cornwall Water & Sewer Budget Presentation:
BMA Study, 2007 Average Water & Sewer Bill:
$700
Adjusted to 2008
=
$718
Flyer
OWNERS and TENANTS




2007
Flat Rate Service Fee
Rate for water
Rate for sewage
Minimum consumption
Total/Year
0
1.45
1.09
147.80
$295.60




2008
Flat Rate Service Fee
Rate for water
Rate for sewage
Minimum consumption
TOTAL PER YEAR
170
1.60
1.20
225.00
$790.00
Ont. Residential Avg.
Ont. Residential Avg.
$785.00
$718.00
Water & Sewer Rates doubled in Cardinal in 2007.
In 2008 Edwardsburg Cardinal rates are again
increasing from $460 per year to $500 per year.
Pat Sayeau, Chairman - Finance & Administration
“We could cover our operational costs and our
debenture payments, but we couldn't cover our capital
costs.”
- Brockville Recorder
Adjusted to include capital
=
~$800
Flyer
OWNERS and TENANTS




2007
Flat Rate Service Fee
Rate for water
Rate for sewage
Minimum consumption
Total/Year
0
1.45
1.09
147.80
$295.60




2008
Flat Rate Service Fee
Rate for water
Rate for sewage
Minimum consumption
TOTAL PER YEAR
Ont. Residential Avg.
Ont. Residential Avg.
170
1.60
1.20
225.00
$790.00
$785.00
$718.00
$800.00
Flyer
OWNERS and TENANTS




2007
Flat Rate Service Fee
Rate for water
Rate for sewage
Minimum consumption
Total/Year
0
1.45
1.09
147.80
$295.60




2008
Flat Rate Service Fee
Rate for water
Rate for sewage
Minimum consumption
TOTAL PER YEAR
Ont. Residential Avg.
Ont. Residential Avg.
170
1.60
1.20
225.00
$790.00
$785.00
$718.00
$800.00
Other Communities (2007)
North Glengarry
Bath
Amherstview
Odessa
$871.50
$717.96
$485.64
$902.16
Lancaster System
IN DEBT
Lancaster System Surplus (Deficit)
$2005
2006
$(100,000.00)
$(200,000.00)
$(300,000.00)
$(400,000.00)
$(500,000.00)
Debt from Township Reserves
2007
Lancaster System
IN DEBT
Lancaster System Surplus (Deficit)
$2005
2006
$(100,000.00)
$(200,000.00)
$(300,000.00)
$(400,000.00)
$(500,000.00)
Debt from Township Reserves
2007
Lancaster System
IN DEBT
•
Chart only includes debt from Township reserves
•
Does not include 1998 debenture, paid in 2007
•
Ironically, that debenture caused due to revenues not covering
operating costs ($460,000)
•
Does not include the 1976 debenture, which will be paid in 2016
•
Does not include the 2002 debenture, which will be paid in 2012
Lancaster System
IN DEBT
•
If the entire debt from Township reserves were to be paid off today
each user would be billed approximately $1000
•
Plan to pay off $315,000
•
•
•
Future impose fees
May be paid off in 2019, earlier if growth exceeds expectations
Plan to pay off 2007 deficit of $120,000
•
•
Paid off with new rate increase
May be paid off in 2010 at the earliest, longer if rates are lowered
•
One of two debentures paid off in 2012, the other in 2016
•
Even with new rates it will be some time before the Lancaster system
pays off its current debts from the Township reserves
Rumours About
WATER and SEWER RATES
•
•
•
New rates necessary because of Cairnview Estates
•
½ of the $315,000 strategic investment was pre-paying impose
fees from Cairnview. Without that the cost for water and sewer
users in 2001 would have been significantly higher. Because of
Cairnview, water and sewer rates will be LOWER
•
A bond from any developer doesn’t generate revenue for the
Township, it guarantees payment. Anyone building in Cairnview
will be required to connect to the Lancaster system and pay an
impose fee which will reduce the $315,000 strategic investment
New rates necessary because of the repairs to the lagoon
•
Rate increases were first proposed before Administration was
even aware repairs were necessary to the lagoon
•
Lagoon repairs did not increase expenses for last year, it
replaced other capital repairs
The new rate is not because the South Lancaster system cost more
to build than expected. The new rates are to operate and maintain
the system.
FOCUS on COST RECOVERY
Bill 175 (Sustainable Water and Sewer Systems Act)
focuses on full cost recovery
Cost recovery includes:
Source Protection
Operating costs
Financing costs
Renewal, replacement and improvement costs
Extraction, treatment and distribution costs
Other costs as prescribed by Province
FOCUS on COST RECOVERY

Financial plans for systems required
 Lancaster System will be in a large deficit

PSAB Accounting Changes
 Lancaster System will be in a large deficit
We are not recovering our costs in Lancaster
Water & Sewer Systems
EFFICIENT OPERATIONS
Municipality (2005)
South Glengarry Tp
Champlain Tp
Alfred and Plantagenet Tp
North Huron Tp
Clearview Tp
Ramara Tp
Average = $621
South Glengarry Tp
South Glengarry II*
Wastewater Collection,
Treatment and Disposal
(Integrated System):
Operating costs for the
collection, treatment and
disposal of wastewater per
megalitre
$305,765
$357,696
$331,054
$348,454
$614,686
$409,015
Wastewater Collection,
Treatment and Disposal
(Integrated System):
Operating costs for the
collection, treatment and
disposal of wastewater per
megalitre
591
708
571
707
681
564
Wastewater Collection,
Treatment and Disposal
(Integrated System):
Operating costs for the
collection, treatment and
disposal of wastewater per
megalitre
$
$
$
$
$
$
Difference from Average
517 -16.6%
505
580
493
903
725
AVERAGE
637 $
621
$362,235
591 $
613 -1.2%
Water & Sewer Systems
EFFICIENT OPERATIONS
Municipality (2005)
South Glengarry Tp
Stirling-Rawdon Tp
Asphodel-Norwood Tp
Guelph/Eramosa Tp
Warwick Tp
Severn Tp
Bonnechere Valley Tp
Average = $962
South Glengarry Tp
South Glengarry II*
Treatment and Distribution of
Drinking Water (Integrated
System): Operating costs for
the treatment of drinking
water per megalitre
NUMERATOR: Operating
Costs for Treatment and
Distribution of Drinking Water
$305,763
$308,876
$222,780
$357,576
$329,970
$528,915
$231,698
Treatment and Distribution of
Drinking Water (Integrated
System): Operating costs for
the treatment of drinking
water per megalitre
DENOMINATOR: Total
megalitres of Drinking Water
Treated
379
338
317
354
351
309
359
Treatment and Distribution of Difference from Average
Drinking Water (Integrated
System): Operating costs for
the treatment of drinking
water per megalitre
Efficiency Measure
$
$
$
$
$
$
$
807 -16.1%
914
703
1,010
940
1,712
645
AVERAGE
344 $
962
$362,233
379 $
956 -0.6%
Water & Sewer Systems
EFFICIENT OPERATIONS

Compared to all Ontario Townships in 2005

Wastewater
- 25.0% more efficient
- 11.2% more efficient when additional
capital included

Tap Water
- 41.8% more efficient
- 31.1% more efficient when additional
capital included
Water & Sewer Systems
EFFICIENT OPERATIONS

Everyone is prepared to pay their fair share

New rates only cover the cost to operate and maintain the systems

The system is not sustainable with the old rates

Not sustainable in the short term

Not sustainable for our children
Water & Sewer Rates
ALTERNATIVE BY-LAW

A Memo provided to Council with an alternative water & sewer rates
by-law

Alternative by-law is not recommended by Administration

Alternative by-law would provide a cushion to the rates for the first
year
Water & Sewer Rates
ALTERNATIVE BY-LAW




2008 Rates (2007 By-Law)
Flat Rate Service Fee
170
Rate for water
1.60
Rate for sewage
1.20
Minimum consumption
225.00
TOTAL PER YEAR
$790.00
2008 Rates (Alternative By-Law)
 Flat Rate Service Fee
170
 Rate for water
1.60
 Rate for sewage
1.20
 Minimum consumption
162.40
TOTAL PER YEAR
$664.80
Ont. Residential Avg.
Ont. Residential Avg.
Minimum bill reduced by 16%
From the new rates approved in 2007
$785.00
$718.00
$800.00
Water & Sewer Rates
ALTERNATIVE BY-LAW




2008 Rates (2007 By-Law)
Flat Rate Service Fee
170
Rate for water
1.60
Rate for sewage
1.20
Minimum consumption
225.00
TOTAL PER YEAR
$790.00
2008 Rates (Alternative By-Law)
 Flat Rate Service Fee
85 + 170
 Rate for water
1.60
 Rate for sewage
1.20
 Minimum consumption
162.40
TOTAL PER YEAR
$579.80
Ont. Residential Avg.
Ont. Residential Avg.
Minimum bill reduced by 27%
From the new rates approved in 2007
$785.00
$718.00
$800.00
Water & Sewer Rates
ALTERNATIVE BY-LAW




2008 Rates (2007 By-Law)
Flat Rate Service Fee
170
Rate for water
1.60
Rate for sewage
1.20
Minimum consumption
225.00
TOTAL PER YEAR
$790.00
2008 Rates (Alternative By-Law)
 Flat Rate Service Fee
85 + 170
 Rate for water
1.60
 Rate for sewage
1.20
 Minimum consumption
162.40
TOTAL PER YEAR
$579.80
Ont. Residential Avg.
Ont. Residential Avg.
$785.00
$718.00
$800.00
Rates automatically adjusted to cover operating costs plus 10%
Rate increases capped at 5% (Council approval required to exceed)
Water & Sewer Rates
ALTERNATIVE BY-LAW




Lancaster system asset value (original pricing)
$13,000,000
Consultant recommends 2% required for capital
$260,000
2008 Lancaster Capital Budget
$120,000
Difference between budget and requirement

Government funding
• There will not be a lot of government funding available
• You can only get government funding for certain capital
expenses – except for 2007 we haven’t had capital
expenses for a number of years

Debt financing

Rate adjustments
Water & Sewer Rates
ALTERNATIVE BY-LAW

Lancaster Rates

2007

2008 New Rates

2008 Alternative

$295.60
$790.00
$579.80
Glen Walter Rates

2007

2008 New Rates

2008 Alternative
$603.76
$790.00
$579.80

’08 Ont. Residential Av. ~$750.00  ’08 Ont. Residential Av. ~$750.00

Lancaster Rates
 Glen Walter Rates

2009
~$681.00*

2009
~$681.00*

SUBJECT TO CAPITAL PLAN

SUBJECT TO CAPITAL PLAN
Administration Does Not Support
ALTERNATIVE BY-LAW

Although small, Lancaster will continue a deficit in 2008 ($8,000)
 Although Lancaster rates increase in 2008 by 96%, Glen Walter Rates
decrease by 4%

How is that possible? Because Council has kept Lancaster rates as low as
possible for as long as possible. And it is no longer sustainable.

The 2008 rates are substantially lower than the Provincial average
 The by-law as passed last year brings the rates closer in line with the
Provincial average
Administration continues to support the new rates as approved in 2007