HomeMy WebLinkAboutFIN-2021-61 - 2022 Water Utilities Rates
REPORT TO: Council
DATE OF MEETING: November 30, 2021
SUBMITTED BY: Ryan Hagey, Director of Financial Planning, 519-741-2200 ext. 7353
PREPARED BY: Ryan Hagey, Director of Financial Planning, 519-741-2200 ext. 7353
WARD(S) INVOLVED: All
DATE OF REPORT: November 16, 2021
REPORT NO.: FIN-2021-61
SUBJECT: 2022 Water Utilities Rates
RECOMMENDATION:
THAT the proposed rates contained in the 2022 Water Utilities Rates schedule
attached to Financial Services Department Report FIN-2021-61 be approved.
REPORT HIGHLIGHTS:
The total Water Utilities Rate Increase is 2.2%
Water and Sanitary Sewer rate increases are completely related to increases in the
Regional rate for water supply and sewage processing
Stormwater increase is required to leverage $50M of grant funding through the Disaster
Mitigation and Adaptation Fund (DMAF)
st
New rates come into effect January 1
BACKGROUND:
Council. In 2017, a comprehensive review of the water, sanitary and stormwater
infrastructure (the Water Infrastructure Program or WIP) was conducted to evaluate
infrastructure investment needs and other factors such as affordability, growth, and
sustainability. The WIP report provided information about the infrastructure in each of the
utilities and provided Council with investment options for both capital replacement and
increased maintenance spending along with 5-
consensus from that discussion provided staff with direction for future investments and rate
increases which have been reflected in previous budgets.
REPORT:
The proposed rate increases for the Water Utilities are summarized in the table below,
with the more detailed schedule attached to the report. These rate changes will come into
st
effect on January 1.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Summary of Water Utilities Rate Changes
Utility Rate Change
Water 1.4%
Sanitary 1.6%
Stormwater 6.0%
Combined 2.2%
The proposed rate increase of 2.2% (combined) is significantly lower than the forecast rate
increase (as shown in the table below).
Projected Combined Utility Rate Increases
2018 2019 2020 2021 2022
Rate Increase Projection from WIP 6.5% 6.5% 4.5% 4.5% 4.5%
Revised Rate Increase Projection 6.5% 6.5% 4.4% 0.9% 2.2%
water and sanitary rates. For these two utilities, only Region of Waterloo increased costs
for water supply and sewage processing are being passed through to customers, but nothing
else.
Regarding stormwater, a rate is required committed share ($75M) of
projects being significantly funded ($50M in total) by other levels of government through the
Disaster Mitigation and Adaptation Fund (DMAF). A significant portion (75%) of urban areas
in the city lack adequate stormwater management. The DMAF funding will implement
important stormwater management initiatives that will help mitigate the severity of local
flooding that can impact drinking water quality, downstream environments and public and
private properties. It is estimated that for every dollar spent by Kitchener ratepayers, they
receive a projected return of $18 in prevented damage costs.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
The total annual impact of the proposed rate changes is $26 (or 2.2%) as noted in the table
below.
Impact on Homeowner
2021 2022 $ Change % Change
Water $421 $427 $6 1.4%
Sanitary $530 $538 $8 1.6%
Stormwater $197 $209 $12 6.0%
TOTAL $1,148 $1,174 $26 2.2%
Assumptions:
3
Water & Sanitary: water consumption of 170m annually
Stormwater: Residential Single Detached Medium
COMMUNITY ENGAGEMENT:
INFORM
the council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
FIN-2021-58 2022 Operating Budget
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
ATTACHMENTS:
Attachment A 2022 Water Utilities Rates
Attachment A - 2022 Water Utilities Rates
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