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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

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Notice regarding new water sewer rates
Notice Regarding NewWATER & 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
FlyerOWNERS and TENANTS

2007

2008

  • Flat Rate Service Fee 0

  • Rate for water .8445

  • Rate for sewage .6335

  • Minimum consumption 147.80

    Total/Year $295.60

  • Flat Rate Service Fee 170

  • Rate for water 1.60

  • Rate for sewage 1.20

  • Minimum consumption 225.00

    TOTAL PER YEAR $790.00


Corrections owners and tenants
CORRECTIONSOWNERS and TENANTS

2007

2008

  • 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

  • Flat Rate Service Fee 170

  • Rate for water 1.60

  • Rate for sewage 1.20

  • Minimum consumption 225.00

    Total/Year $790.00


Corrections owners and tenants1
CORRECTIONSOWNERS and TENANTS

2007

2008

  • 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

  • Flat Rate Service Fee 170

  • Rate for water 1.60

  • Rate for sewage 1.20

  • Minimum consumption 225.00

    TOTAL PER YEAR $790.00

2007 Glen Walter $603.76



“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 tenants1
Flyer survey of 80 municipalities, the average rate as of 2006 was $756 per year”OWNERS and TENANTS

2007

2008

  • Flat Rate Service Fee 0

  • Rate for water 1.45

  • Rate for sewage 1.09

  • Minimum consumption 147.80

    Total/Year $295.60

  • Flat Rate Service Fee 170

  • Rate for water 1.60

  • Rate for sewage 1.20

  • Minimum consumption 225.00

    TOTAL PER YEAR $790.00

Ont. Residential Avg. $785.00


City of Cornwall Water & Sewer Budget Presentation: survey of 80 municipalities, the average rate as of 2006 was $756 per year”

BMA Study, 2007 Average Water & Sewer Bill:

$700

Adjusted to 2008

=

$718


Flyer owners and tenants2
Flyer survey of 80 municipalities, the average rate as of 2006 was $756 per year”OWNERS and TENANTS

2007

2008

  • Flat Rate Service Fee 0

  • Rate for water 1.45

  • Rate for sewage 1.09

  • Minimum consumption 147.80

    Total/Year $295.60

  • Flat Rate Service Fee 170

  • Rate for water 1.60

  • Rate for sewage 1.20

  • Minimum consumption 225.00

    TOTAL PER YEAR $790.00

Ont. Residential Avg. $785.00

Ont. Residential Avg. $718.00


Water & Sewer Rates doubled in Cardinal in 2007. survey of 80 municipalities, the average rate as of 2006 was $756 per year”

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 tenants3
Flyer survey of 80 municipalities, the average rate as of 2006 was $756 per year”OWNERS and TENANTS

2007

2008

  • Flat Rate Service Fee 0

  • Rate for water 1.45

  • Rate for sewage 1.09

  • Minimum consumption 147.80

    Total/Year $295.60

  • Flat Rate Service Fee 170

  • Rate for water 1.60

  • Rate for sewage 1.20

  • Minimum consumption 225.00

    TOTAL PER YEAR $790.00

Ont. Residential Avg. $785.00

Ont. Residential Avg. $718.00

$800.00


Flyer owners and tenants4
Flyer survey of 80 municipalities, the average rate as of 2006 was $756 per year”OWNERS and TENANTS

2007

2008

  • Flat Rate Service Fee 0

  • Rate for water 1.45

  • Rate for sewage 1.09

  • Minimum consumption 147.80

    Total/Year $295.60

  • Flat Rate Service Fee 170

  • Rate for water 1.60

  • Rate for sewage 1.20

  • Minimum consumption 225.00

    TOTAL PER YEAR $790.00

Ont. Residential Avg. $785.00

Ont. Residential Avg. $718.00

$800.00

Other Communities (2007)

North Glengarry $871.50

Bath $717.96

Amherstview $485.64

Odessa $902.16


Lancaster system in debt
Lancaster System survey of 80 municipalities, the average rate as of 2006 was $756 per year”IN DEBT

Debt from Township Reserves


Lancaster system in debt1
Lancaster System survey of 80 municipalities, the average rate as of 2006 was $756 per year”IN DEBT

Debt from Township Reserves


Lancaster system in debt2
Lancaster System survey of 80 municipalities, the average rate as of 2006 was $756 per year”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 debt3
Lancaster System survey of 80 municipalities, the average rate as of 2006 was $756 per year”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
Rumours About survey of 80 municipalities, the average rate as of 2006 was $756 per year”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
FOCUS on COST RECOVERY survey of 80 municipalities, the average rate as of 2006 was $756 per year”

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 recovery1
FOCUS on COST RECOVERY survey of 80 municipalities, the average rate as of 2006 was $756 per year”

  • 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
Water & Sewer Systems survey of 80 municipalities, the average rate as of 2006 was $756 per year”EFFICIENT OPERATIONS


Water sewer systems efficient operations1
Water & Sewer Systems survey of 80 municipalities, the average rate as of 2006 was $756 per year”EFFICIENT OPERATIONS


Water sewer systems efficient operations2
Water & Sewer Systems survey of 80 municipalities, the average rate as of 2006 was $756 per year”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 operations3
Water & Sewer Systems survey of 80 municipalities, the average rate as of 2006 was $756 per year”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
Water & Sewer Rates survey of 80 municipalities, the average rate as of 2006 was $756 per year”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 law1
Water & Sewer Rates survey of 80 municipalities, the average rate as of 2006 was $756 per year”ALTERNATIVE BY-LAW

2008 Rates (2007 By-Law)

2008 Rates (Alternative 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

  • 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. $785.00

Ont. Residential Avg. $718.00

$800.00

Minimum bill reduced by 16%

From the new rates approved in 2007


Water sewer rates alternative by law2
Water & Sewer Rates survey of 80 municipalities, the average rate as of 2006 was $756 per year”ALTERNATIVE BY-LAW

2008 Rates (2007 By-Law)

2008 Rates (Alternative 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

  • 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. $785.00

Ont. Residential Avg. $718.00

$800.00

Minimum bill reduced by 27%

From the new rates approved in 2007


Water sewer rates alternative by law3
Water & Sewer Rates survey of 80 municipalities, the average rate as of 2006 was $756 per year”ALTERNATIVE BY-LAW

2008 Rates (2007 By-Law)

2008 Rates (Alternative 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

  • 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. $785.00

Ont. Residential Avg. $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 law4
Water & Sewer Rates survey of 80 municipalities, the average rate as of 2006 was $756 per year”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 law5
Water & Sewer Rates survey of 80 municipalities, the average rate as of 2006 was $756 per year”ALTERNATIVE BY-LAW

  • Lancaster Rates

    • 2007 $295.60

    • 2008 New Rates $790.00

    • 2008 Alternative $579.80

  • ’08 Ont. Residential Av. ~$750.00

  • Lancaster Rates

    • 2009 ~$681.00*

    • SUBJECT TO CAPITAL PLAN

  • Glen Walter Rates

    • 2007 $603.76

    • 2008 New Rates $790.00

    • 2008 Alternative $579.80

  • ’08 Ont. Residential Av. ~$750.00

  • Glen Walter Rates

    • 2009 ~$681.00*

    • SUBJECT TO CAPITAL PLAN


Administration does not support alternative by law
Administration Does Not Support survey of 80 municipalities, the average rate as of 2006 was $756 per year”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


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