Attachment 1
Agenda Item No.:__________
Land Drainage Utility Implementation Plan
Recommendation:
1. That the City of Edmonton, Sewers Use
Bylaw be amended to establish a
Drainage Utility consisting of a land
drainage utility and the existing sanitary
utility commencing January 1, 2003.
2. That the projected 2003 land drainage
utility rate charged to customers be
$0.01232 per m2 per month of
contributing property area based on the
land area, the intensity of development
and the land zoning of the property.
3. That the portion of property tax revenue
currently used to finance land drainage
capital and operational costs be deducted
from future City of Edmonton property
tax revenue estimates once the utility is
activated.
Report Summary
This utility implementation plan sets out an
approach that will provide adequate funding
for current and future land drainage
maintenance, rehabilitation, growth and
environmental protection. Approval of this
plan would eliminate the need to finance
land drainage services through property
taxes.
approved in principle, subject to the
administration preparing a further report
outlining a plan for implementation.”
Report
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Previous Council/Committee Action
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At the regular meeting of City Council
on July 4, 2000 the following motion
was approved:
“That the City of Edmonton’s Utility
Fiscal Policy be amended to establish a
stormwater utility with the utility rate to
be based on the unique characteristics of
properties relating to size, intensity of
development and imperviousness, and
dealing with tax-exempt properties to be
Routing:
Delegation:
Written By:
April 23, 2002
File: 2002PWD047
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The land drainage utility and
implementation plan are consistent with
City Council approved strategies and
initiatives that promote sustainable
growth, infrastructure and sources of
funding.
The attached Land Drainage
Implementation Plan (Attachment 1)
provides the following details regarding
the creation and operation of a land
drainage utility beginning January 1,
2003:
o Customer base
o Rate model
o Rate model impacts on customer
groups
o Billing & collection system
o Revenue projections
o Legal issues
o Municipal comparisons
All property owners who use land
drainage services will pay for future
operating and capital costs. The
Municipal Government Act prohibits the
discrimination of any utility user, either
in the rate charged or the service
provided. The assessment and fee
structure is therefore predicated on
fairness and equity and includes all
property owners who benefit from land
drainage services. This includes
property owners exempt from paying
property taxes.
The rate model is based, as directed by
City Council, on the area of a property,
the intensity of development and land
Transportation and Public Works Committee, City Council
W. D. Burn
Kurt Sawatzky/Chris Ward
Asset Management and Public Works Department
(Page 1 of 3)
Land Drainage Utility Implementation Plan
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zoning. All users will pay the same base
rate, but monthly fees will vary
significantly depending on the nature,
size and use of a property.
Development of this implementation
plan included an extensive public
consultation program. A summary
report is attached (Attachment 2).
A number of suggestions by
stakeholders have been incorporated in
this plan including an appeals process,
and a recommendation to ensure
property owners do not pay twice for
land drainage services. Based on
stakeholder feedback, consideration has
also been given to funding options for
community groups.
Implementation of the plan will result in
one overall Drainage Utility, as the
sanitary sewer system already generates
its revenue through a utility.
A communications program to raise
awareness of the utility, the rate model
and to ensure a smooth transition for
customers to a utility structure, will be
developed once the implementation plan
is approved.
Canadian municipalities with partial or
full land drainage utilities include
Regina, Saskatoon, Strathcona County,
Calgary and Winnipeg. Likewise there
are more than 300 land drainage utilities
in the United States.
Budget / Financial Implications
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In 2003, approximately $12.5 million
will be deducted from that portion of the
property tax levy currently used to fund
land drainage services.
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In 2003, $13.5 million will be collected
from land drainage utility users.
The projected capital and operating
budgets of the land drainage system will
range from $20-$25 million per year.
“Pay as you go” financing is unable to
meet current and future demands on the
system. The ability to borrow money
allows an adequate level of investment
and spreads payments out over the life
span of the infrastructure.
Customer billing will occur through
EPCOR. One-time costs to modify the
billing system are estimated to be
$500,000 to $600,000. On-going billing
costs are estimated to be $300,000 per
year. This includes the creation of one
new FTE.
Legal Implications
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Section 7(g) of the Municipal
Government Act provides a municipality
with the authority to establish a public
utility. Under the Act, land drainage is
considered an activity that may be
conducted as a public utility.
Municipalities can finance public utility
activities by way of bylaws that establish
charges and conditions of service, in
addition to the construction and use
issues that are already addressed in
existing bylaws.
Justification of Recommendation
1. To ensure future operating and capital
funding is adequate to pay for all needed
land drainage system’s upgrades,
rehabilitation and environmental
protection activities. A bylaw
(Page 2 of 3)
Land Drainage Utility Implementation Plan
amendment is required under the
Municipal Government Act.
2. To ensure the rate model is fair and
equitable to all users and considers the
unique characteristics of individual
properties. The initial per month rate fee
will ensure the utility has adequate
financing at start-up.
3. To ensure property owners they are not
paying twice for land drainage costs.
Background Information Available Upon
Request
1. Implementation Plan for a New
Drainage Utility.
2. Proposed Land Drainage Utility Public
Consultation Final Report - April 8,
2002 (Overview, Methodology and Key
Findings).
Others Approving this Report
Randy Garvey, Corporate Services
(Page 3 of 3)