HomeMy WebLinkAboutCouncil Agenda - 2023-10-02 SSpecial Council Meeting
Agenda
Monday, October 2, 2023, 1:30 p.m.
Council Chambers - Hybrid
City of Kitchener
200 King Street W, Kitchener, ON N2G 4G7
People interested in participating in this meeting can register online using the delegation registration
form at www.kitchener.ca/dele , aq tion or via email at delegation kitchener.ca. Please refer to the
delegation section on the agenda below for registration in-person and electronic participation
deadlines. Written comments received will be circulated prior to the meeting and will form part of the
public record.
The meeting live -stream and archived videos are available at www.kitchener.ca/watchnow
*Accessible formats and communication supports are available upon request. If you require
assistance to take part in a city meeting or event, please call 519-741-2345 or TTY 1-866-969-9994.*
Pages
1. Commencement
The meeting will begin with a Land Acknowledgement given by the Mayor.
2. Disclosure of Pecuniary Interest and the General Nature Thereof
Members of Council and members of the City's local boards/committees are
required to file a written statement when they have a conflict of interest. If a
conflict is declared, please visit www.kitchener.ca/conflict to submit your written
form.
3. Delegations
Pursuant to Council's Procedural By-law, delegations are permitted to address
the Committee for a maximum of five (5) minutes. All Delegations where
possible are encouraged to register prior to the start of the meeting. For
Delegates who are attending in-person, registration is permitted up to the start
of the meeting. Delegates who are interested in attending virtually must register
by 11:30 a.m. on October 2, 2023, in order to participate electronically.
4. Staff Reports
4.1 2024 Budget Process and Timelines, FIN -2023-417, FIN -2023-417 3
5. Strategic Session Reports
5.1 Water Infrastructure Program (WIP) 2023 60 m 6
Update, INS -2023-437
6. Mayoral Business and Updates - Mayor B. Vrbanovic
7. In -camera Meeting Authorization
Note: Any member of Council may question the appropriateness of a listed in -
camera item. This may be done during the special Council meeting or at the
beginning of the in -camera session.
Council is asked to enact the following resolution to authorize an in -camera
meeting:
"That an in -camera meeting of City Council be held immediately following
the special council meeting this date to consider two land acquistion and
disposition matters as authorized by Sections 239 (c) of the Municipal Act,
2001, respectively."
7.1 Potential Land Acquisition (Land Acquisition - 60 m
Section 239 (c))
Staff will provide information and seek direction on this matter.
7.2 Potential Land Disposition - Affordable 15 m
Housing - (Land Disposition - Sections 239 (c))
Staff will provide information and seek direction on this matter.
8. By-laws
8.1 Three Readings
8.1.a To confirm all actions and proceedings of the Council for October 2,
2023.
9. Adjournment
Page 2 of 23
Staff Report
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Financial Services Department www.kitchener.ca
REPORT TO: Committee of the Whole
DATE OF MEETING: October 2, 2023
SUBMITTED BY: Ryan Hagey, Director of Financial Reporting & Asset Management,
519-741-2100 ext. 7353
PREPARED BY: Ryan Hagey, Director of Financial Reporting & Asset Management,
519-741-2100 ext. 7353
WARD(S) INVOLVED: All
DATE OF REPORT: September 26, 2023
REPORT NO.: FIN -2023-417
SUBJECT: 2024 Budget Process and Timelines
RECOMMENDATION:
That the 2024 budget timelines outlined in report FIN -2023-417 be approved; and
That Council shorten the 30 -day period that Council may pass a resolution making an
amendment to the Mayor's proposed budget to coincide with the completion of the
meeting scheduled on December 14, 2023.
REPORT HIGHLIGHTS:
The purpose of this report is to approve the process and timelines for the 2024 budget.
This report supports the delivery of core services.
BACKGROUND:
With the passing of the Strong Mayors, Building Homes Act and Part V1.1. of the Municipal Act
regarding Special Powers and Duties of the Head of Council earlier this year by the Provincial
government, the City of Kitchener's budget process will see some changes. Overall, the City's
general timelines of discussing the budget in November and having an approved budget in
December is expected to remain unchanged, but some adjustments are required to comply with
the new legislation.
REPORT:
The 2023 Council calendar includes scheduled dates for the 2024 budget process. The key
dates include reviewing the operating budget on November 20, reviewing the capital budget on
November 27, and having Final Budget Day on December 14.
The proposed budget schedule in this report sees these key budget dates remain
unchanged, so the budget will be presented and considered by Council within the City's
normal budget window. But to comply with the Provincial legislation, approval of a revised
schedule is required, including a reduction in the amount of time Council has to propose
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 3 of 23
amendments and the Mayor has to veto any amendments. A brief summary of the four main
differences to the budget process under Special Powers legislation include:
1. The budget will be proposed by the Mayor
• Staff intend to table a 2024 budget and present it to Committee on November 20 & 27,
and then the Mayor will propose the 2024 budget a week later on December 4.
2. Council has 30 days to pass amendments to the budget
• To keep the existing timelines and have an adopted budget before the end of the year,
amendments will be voted on by Council on December 14 (aka Final Budget Day). This
will require Council to approve a shortening of the amendment timeline from 30 days.
3. The Mayor has 10 days to veto passed amendments
• To keep the existing timelines and have an adopted budget before the end of the year,
any veto from the Mayor would be required on December 14 (aka Final Budget Day).
This will require the Mayor to issue a Direction to shorten the veto timeline from 10 days.
4. The budget is deemed approved 15 days after the veto period ends
• The 2024 budget as amended on December 14th would be deemed adopted once the
shortened veto period ends, or at the latest, December 29th
The proposed timelines for the 2024 budget to comply with new legislation is shown in the table
below. A graphic representation is at the end of this report.
*Note: this requires Council to agree to shorten the 30 -day period for amendments and the Mayor
to issue a Direction to shorten the 10 days for veto powers.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
There are no financial implications of this report as the proposed timelines will see the budget
approved in the planned timeframe, before the end of the calendar year.
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of the
council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
• Strong Mayors, Building Homes Act 2022 and Part V1. 1. of the Municipal Act
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer
Page 4 of 23
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Staff Report
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NSR finance and Corporate Services Department www.kitchenerca
REPORT TO:
DATE OF MEETING:
SUBMITTED BY
a:747_1:74B7 A
WARD(S) INVOLVED:
DATE OF REPORT:
REPORT NO.:
SUBJECT:
RECOMMENDATION:
For discussion
Special Council
October 2, 2023
Bu Lam, Director of Sanitary and Stormwater Utilities, 519-741-
2200 ext. 4212
Greg St. Louis, Director of Gas & Water Utilities, 519-741-2200
ext. 4538
Christopher Leishman, Project Manager Water Infrastructure
Program, 519-471-2200 ext. 4026
All
October 2, 2023
INS -2023-437
2024 Water Infrastructure Program Summary and Rate Options
REPORT HIGHLIGHTS:
• The purpose of the Water Infrastructure Program (WIP) report is to assess the service
levels of the water, sanitary and stormwater utilities to ensure that the services
provided meet customer expectations and legislative requirements. The WIP review
ensures that the utilities are operated sustainability, risks are minimized, and that
critical services are reliably delivered and protective of the environment and public
health and safety.
• The key findings of the WIP review are that infrastructure investments are needed to
avoid significant failures in the areas of trunk sewers and pumping stations, address
high priority infrastructure renewals not previous captured under previous WIP
programs, close inspection gaps, and meet legislative requirements for maintenance
(e.g., Oil/grit separators for stormwater quality).
• Staff assessed the rate impacts between 2024-2027 for three options associated with
different levels of capital investments for the replacement of water, sanitary and
stormwater infrastructure through both the road reconstruction program, as well as
standalone asset renewals for highest risk infrastructure (e.g., trunk sewers).
• Using the Council -endorsed WIP guiding principles, with a primary emphasis on
customer affordability, staff recommend rate option 3, or a 6.3% rate increase each
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 6 of 23
year for the next four years, which includes the associated resourcing requirements
of 11.5 FTEs.
This report supports the delivery of core services.
BACKGROUND:
The drinking water, sanitary and stormwater systems are critical infrastructure that deliver
essential services to the residents of the City of Kitchener. This infrastructure provides a
source of reliable & safe drinking water, conveys wastewater to Regional treatment
facilities, reduces flooding risk from climate related events, and contributes to the health
and safety of Kitchener's residents and the environment.
The Accelerated Infrastructure Replacement Program (AIBP) was launched in 2002.
The purpose of the program was to evaluate the age and useful life of linear water
infrastructure and plan for the replacement of approximately 260 km of end -of -life water,
sanitary and stormwater pipes through triple -funded projects by 2032.
In 2018, the AIRP was renamed the Water Infrastructure Program (WIP) and outlined
the utility's needs for the sustainable delivery of water services over a 5 -year window,
2018 — 2022 for both capital investments and operations and maintenance programs.
The 2018 WIP involved engagement and direction from the Corporate Leadership Team
and Council which led to the development of WIP's guiding principles which remain
unchanged in this current iteration of WIP. These guiding principles are:
• Ensure regulatory requirements are met or exceeded.
• Consider the likelihood of infrastructure failure and the financial and service
delivery impacts.
• Ensure the City is able to deliver consistent, quality service to customers today
and into the future.
• Consider customers' ability to pay.
• Information about the Water Infrastructure Program (including what makes up
water utility rates and any rate changes) is clearly communicated to customers.
The program that was endorsed by council prior to setting the 2018 budget was:
• Combined water utility rates of 6.5%, 6.5%, 4.5%, 4.5%, 4.5% respectively for a
5 -year period spanning 2018 to 2022
• An extended timeframe to close the infrastructure replacement gap from 2032 to
2044
• Providing increased maintenance funding to the stormwater and water utilities,
$2 million and $1.3 million, respectively, over the 5 years to address critical
maintenance program gaps.
The primary purpose of the WIP is to establish utility rates that will ensure the three
water utilities are operating sustainably and that risks to the water utilities and residents
of Kitchener are minimized. The pandemic and other macroeconomic factors have
made achieving sustainable operations for each utility challenging. Impacts continue to
be felt today in the form of rising inflation (i.e., higher consumer price index (CPI)),
Page 7 of 23
higher interest rates, increased fuel costs and supply chain challenges, which have all
led to higher expenses to deliver the same level of service.
To proactively address the financial impacts of the pandemic and to minimize
affordability challenges to Kitchener residents, Council passed a 0.9% utility rate
increase in 2021 and rate increases of 2.2% and 4.5% in 2022 and 2023, respectively.
These rate increases were purposely kept low to protect against affordability challenges
for Kitchener residents; however, the rates passed were not able to keep pace with
inflation in those years, and important programs to address critical infrastructure
replacement needs were deferred to future years. Additionally, some of the investments
planned during the 2018 WIP were similarly deferred, including the funding to address
maintenance gaps for the water and stormwater utilities (i.e., 40% of the funding
earmarked during the last WIP was not delivered).
These gaps have elevated risks associated with operating the utilities and have created
financial shortfalls that need to be addressed to meet established and legislated service
levels. The following tables show the 2018 WIP proposed rate and maintenance funding
increases, and the approved rates that were implemented.
Table 1: 2018 WIP Proposed vs Actual Utility Rate Increases (2018-2022)
Table 2: 2018 WIP Maintenance Funding (2018-2022)
Page 8 of 23
REPORT:
The WIP Project Team worked closely with multiple stakeholders to assess areas of
utility performance and associated investment needs for each of the three water utilities.
This included a review of overall targets for triple -utility asset replacements that have
been the hallmark of this program since its inception in 2002, but also other priority
needs that can best achieve long-term sustainability and risk mitigation for the utilities.
The key drivers of the 2024 — 2027 WIP review include the following factors:
• Economic Drivers
• Regulatory Drivers
• Affordability Drivers
Economic Drivers
From 2021-2023, macroeconomic factors such as the COVID pandemic, labour
shortages, higher fuel costs, supply chain disruptions, and extensive inflation have led
to significant increases in the costs to deliver utility services in Kitchener and across
Canada.
Over the past several years, the Canadian economy has seen sharp increases in
inflation. The average Consumer Price Index (CPI) over the last three years has been
3.6% (2023 - estimated), 6.8% (2022) and 3.5% (2021), and the average for the 10
years prior was 1.78% (2011-2022). This shows a significant upward trend in costs
across all sectors. Kitchener's water utilities have seen similar impacts from inflation in
operations and maintenance and capital programs.
• Operations and maintenance cost increases have been driven by higher fuel
prices, shortages of contractors to perform work, and material/equipment delays.
This has resulted in reductions in certain program/service areas (e.g., reduced
CCTV inspections, reduced pipe repairs, and reduced catch basin/casting repairs)
and/or increased delays for the completion of maintenance works.
• Capital cost increases have been driven by unit price escalations. For example,
tender values for triple funded utility replacements have escalated by almost 50%
between 2021 and 2023 (tender pricing trends can be seen in Attachment B).
This has resulted in significant reductions in the triple -funded road reconstruction
accomplishments for 2021 and 2022 of 5% and 21 %, respectively. Planned
triple -funded road reconstruction work in 2023 is estimated to be 27% less than
what was modeled in the 2018 WIP.
Maintaining levels of service and meeting planned construction targets requires budget
increases to offset inflationary impacts. Without budget increases, customers should
expect additional service level reductions and reduced annual capital renewals.
Page 9 of 23
Regulatory Drivers
The Provincial Government has developed several new regulations since the 2018 WIP
that impose new or modified responsibilities on all Ontario municipalities. These
regulations impact all three of Kitchener's utilities, increasing demands on the utilities to
meet these new standards, including the need to collect/analyze data, meet service
delivery timelines, and in some cases, report annually on regulatory compliance.
Adherence to these regulations is mandatory and is the first Council -endorsed Guiding
Principal for WIP. Table 3 provides a listing of the regulatory changes that have
occurred since 2018 and their impacts to the utilities.
Table
3: Regulatory Changes
Since 2018 That
Impact the Three Utilities
REGULATION
REG. NAME
BILL
IMPACTS
O. Reg 588/17
Asset Management
Infrastructure for Jobs
• Creation of Strategic Asset Management Policy &
Planning for Municipal
and Prosperity Act,
update at least every 5 years (2023).
Infrastructure
2015
• AMPs for Core Infrastructure Assets. Update at
least every 5 years.
• AMPs for all non-core Infrastructure Assets.
Update at least every 5 years.
• Document Proposed Levels of Service.
• Lifecycle management and financial strategy.
O. Reg 406/19
On -Site and Excess Soil
Environmental
• Geotechnical investigations have increased 30%.
Management
Protection Act, 2019
J
BIII 93
An Act to amend the
Bill 93, Getting Ontario
• Sanitary and stormwater have only 1 locator
Building Broadband
Connected Act, 2022
(hired in 2014) for addressing 6,000 locates.
Faster Act, 2021 and
Locates have more than doubled since that
the Ontario
time.
Underground
• Financial penalties to Utilities for not completing
Infrastructure
normal locates within 5 days. 2 days for
Notification System
emergency locates.
Act, 2012
• All damages and delays will be recovered from
Utilities
O. Reg.
Environmental
Environmental
Responsible for the intake and review of ECA
208/19
Compliance Approval
Protection Act
applications for new capital works within the
Regulation in Respect
municipal boundary for sanitary and stormwater
of Sewage Works
infrastructure. Responsibility previously resided
Regulation (CLI -ECA)
with the Ministry.
• Updated training requirements.
• Creation of new business processes and
requirements for annual reporting.
• New system and environmental monitoring
requirements
To meet the new regulatory changes, several investments in operational and
maintenance programming are required. The most significant investments are in
inspection programs, which allow the utilities to better assess asset condition, evaluate
and mitigate risks, minimize service disruptions for customers, and reduce impacts to
persons, property and the environment.
Page 10 of 23
Affordability Drivers
Affordability is a Council -endorsed guiding principle of WIP and a central tenet for the
health and well-being of a community. As such, affordability has been a top
consideration in the design and development of the 2024-2027 WIP program.
Purposeful investments have been made in programs that directly assist residents to
pay their bills, such as Kitchener's water leak adjustment program/policy, which helps
customers offset high water bills due to undiscovered leaks. This program has seen a
steady increase in the number of applications since 2020 and given the current state of
the economy, it is anticipated that applications for this program will continue to trend
upwards. Investments to directly expand the amount of funding available for this
program will allow more residents to apply. Similarly, as part of the 2024-2027 WIP,
staff will be examining other supplemental programs and best practices that can be
implemented to address affordability and equity challenges in our community.
Keeping rates affordable requires a delicate balance between investing to meet utility
needs while also assessing what programs can be slowly ramped -up or deferred to
minimize financial impacts to residents. With an affordability lens in mind, and
recognizing the significant inflationary impacts over recent years, the 2024-2027 WIP
includes balanced investments that:
Direct funding to the highest risk program categories to minimize service
disruptions and mitigate against system failures. For example, capital renewals
for infrastructure categories like pumping stations and trunk sanitary sewers were
prioritized for investments as these have not been previously captured in WIP
and are in significant need for rehabilitation.
Only apply moderate increases in programs that have already made steady
gains, such as the triple -utility replacement program (full road reconstructions),
which has already replaced much of the oldest infrastructure in the City over the
last two decades.
- Re -direct planned increases from lower risk programs to fund higher risk
infrastructure needs (i.e., diverting increases from the triple -utility replacement
program to fund higher risk trunk sanitary sewers, as described above). This is a
prudent measure to ensure limited funds are directed to the highest risk utility
programs as a priority.
- Defer expansion of service levels (i.e., implementing a similar service level to
current year) for a range of annual programs, including leaf collection, pipe -
flushing, valve turning, etc. While there are no planned reductions to these
programs, there similarly are no plans to expand services to these program
areas.
- Defer new programs such as Advanced Metering infrastructure (AMI), as the
capital and operating costs are beyond the ability of the utility to sustain.
Page 11 of 23
The measures above are examples of some of the balanced financial planning
measures taken as part of the rate design for WIP 2024-2027. In some instances,
programs have been implemented over longer periods of time to minimize short term
impacts on rates. This approach will result in funding reductions of up to 60% in some
capital programs. For example, some single -utility capital programs (e.g., mainline and
trunk sewer rehabilitations), which were initially earmarked to be delivered in the next
five years, have had implementation timelines extended to 10-15 years. While there are
measured risks with a slower ramp -up of these programs, staff feel that risks can be
managed with increased maintenance programming, and service levels can still be
achieved, although there will be moderate service level reductions, but none that will be
significantly felt/seen by the average customer. These balanced approaches are a
necessity to protect the affordability of water services for residents of Kitchener.
2024-2027 WIP Program Gaps
The 2024-2027 WIP review focused on important program investments required to
address maintenance and capital program delivery gaps and to enhance customer
service and associated affordability program supports. Program gap areas have been
grouped into five broad categories as defined in Table 4.
Table 4: WIP Program Gaps
Attachment A is a complete list of areas for investment outside of the triple -funded road
reconstruction funding. These investments have been grouped into the aforementioned
investment categories and include a description of the program, benefits, investment
Page 12 of 23
These investments look to reduce reactive maintenance and infrastructure failures by
increasing proactive maintenance. These investments will save money in the future as
preventative maintenance will reduce emergency reactive works, which can often cost 6-10x
Maintenance
more than routine maintenance measures. Preventative maintenance also ensures greater
service reliability and helps assets meet or exceed their estimated useful lives. Investments in
this category include addressing gaps related to pumping station maintenance and condition
inspections of sanitary and storm mains, trunks, and maintenance manholes.
These investments address infrastructure replacement needs that fall outside the triple -utility
Single Utility Investments
replacement program (e.g., sanitary trunk sewers, pumping stations, high-risk watermain
replacements). Historically, single utility projects have not been appropriately funded in WIP,
as a comprehensive program of this nature has not previously been developed.
These investments look to fill important gaps in the City's inspection (CCTV, zoom camera
inspections), data collection and analysis programs to improve investments in asset renewals
Meeting Industry Standards
as well as improve service levels to better align with industry standards. Investments in this
category will also develop and adopt legislated maintenance programs that currently do not
exist at the City.
These investments will mitigate the impacts from climate change, such as projects funded
Addressing Climate Change
through stormwater utility programs like the Disaster Mitigation and Adaptation Fund (DMAF).
Risks
Investments in weather stations will allow better tracking and response to storm events, as
well as the ability to utilize data to refine hydraulic models to build resiliency within the
utilities.
Improving Customer Service
These investments will enhance customer service levels in several Council -endorsed strategic
Levels
areas, such as affordability (expanded financial support programs), equity, and community
engagement.
Attachment A is a complete list of areas for investment outside of the triple -funded road
reconstruction funding. These investments have been grouped into the aforementioned
investment categories and include a description of the program, benefits, investment
Page 12 of 23
levels and any associated full-time equivalent (FTE) positions required to implement
these new/expanded programs.
Triple Funded Capital Program Review
As part of the 2024-2027 WIP review, an analysis was conducted to see how much
additional funding would be required to reinstate the 2018 WIP targets and achieve the
260km of planned road reconstructions by 2044. The annual rate increase that would be
needed was projected to be 8.9%. This projection is shown as Scenario #1 in Figure 1
below and illustrates the level of funding infusion needed to simply get the utilities back
on track to what was planned as part of the 2018 WIP.
The 8.9% rate increase in this scenario would simply bring the utilities back in-line with
the planned target to replace end -of -life water, sanitary and stormwater assets by 2044.
The 8.9% rate projection does not include funding to address high risk infrastructure
outside the triple -utility program (e.g., pumping stations and trunk sanitary sewers), and
similarly does not include implementing programs to address regulatory changes that
have occurred since 2018, including the associated requirements for maintenance.
When these elements are factored in, the projected rate increase exceeds 12%
annually, for the next 4 years of WIP.
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Figure 1: WIP Scenarios Compared with the 2018 WIP model. Scenario #1 shows the program
increase needed to achieve the 2018 WIP targets (i.e., achieving replacement targets by 2044). As a
reference, Scenario #2 shows the current trajectory of the triple -funded program based on the current
(2023) financial state of the utilities.
Page 13 of 23
The 12% annual increase described above was used only as a projection to guide rate
option development. It was clear to staff that 12% annual increase for the next four
years was not an affordable rate for residents, and similarly the rate did not align with
Council's guiding principle of affordability. However, the 12% modeled scenario did
provide context for the magnitude of reductions in utility programs that would be
required in order to bring annual utility rate increases down as part of the 2024-2027
WIP.
The rate options proposed in the following section have been developed with
affordability as a key priority. Significant effort has gone into balancing utility program
needs with risks, and implementing strategies to keep annual rate increases as low as
possible by deferring capital programs and/or delivering programs over longer
timeframes. While deferring projects/capital programs does introduce greater risks to
the utilities, these risks are manageable through the implementation of maintenance
programs.
Rate Options
Rate Option 1 — 8.6% annually for next four years:
• A reduction of road reconstruction accomplishments (2024-2027)
by 15% annually, from 2018 WIP targets
• Includes programs to meet legislative requirements, industry standards,
and address capital/maintenance gaps
• Includes 2.2% Regional increase
• 2024 annual cost increase to homeowner of $105.
Rate Option 2 — 7.6% annually for next four years:
• A reduction of road reconstruction accomplishments (2024-2027)
by 25% annually, from 2018 WIP targets
• Includes programs to meet legislative requirements, industry standards,
and address capital/maintenance gaps
• Includes 2.2% Regional increase
• 2024 annual cost increase to homeowner of $93.
Rate Option 3 — 6.3% annually for next four years:
• A reduction of road reconstruction accomplishments (2024-2027)
by 33% annually, from 2018 WIP targets
• Includes programs to meet legislative requirements, industry standards,
and address capital/maintenance gaps
• Includes 2.2% Regional increase.
• 2024 cost increase to homeowner of $77.
Page 14 of 23
Figure 2 provides a visual comparison of the three proposed rates set against the 2018
WIP model and projections. Note: the starting point for all three rate options already
assumes the current state of the utilities in 2023, which is a reduced road reconstruction
level of service. None of the proposed rate options will allow the utilities to achieve the
2018 WIP goal of closing the infrastructure gap by 2044.
Figure 2: Rate Options as Compared to Rate Scenarios and 2018 WIP Model
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Rate Option 1 (8.6%), 15% annual WIP
reduction of 2018 WIP goal.
Rate Option 2 (7.6%), 25% annual WIP
reduction of 2018 WIP goal.
Rate Option 3 (6.3%), 33% annual WIP
reduction of 2018 WIP goal.
A comparative summary of all 3 rate options can be found in Table 5.
201..8 VVI F1 Model
Scenario 1.
:scenario 2
Table 5: Summary of Proposed Combined Rate Options
Total Combined Rate Increase
City Combined Rate Increase
Regional Rate Increase
2024 Cost Increase to Household
Annual Metres of Road Reconstruction (Average - 4
Years of WIP)
Reduction in WIP Accomplishments From 2018 WIP
Model
Meeting Current Legislative Requirements
Rate
Option 1
8.6%
6.4%
2.2%
$105
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15%
Yes
Rate
Rate
Option 2
Option 3
7.6%
6.3%.
5.4%
4.1%
2.2%
2.2%
$93
$77
5300 4700
25% 33%
Yes Yes
Page 15 of 23
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
Capital Budget — The report proposes new utility rates for 2024 and includes any impacts
to the Capital Budget.
Operating Budget — The report proposes new utility rates for 2024 and includes any
impacts to the Operating Budget.
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance
of the council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
• INS -17-070 Water Infrastructure Program Summary and Rate Options
APPROVED BY: Denise McGoldrick, General Manager Infrastructure Services
Page 16 of 23
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Attachment B — WIP Tender Costing Analysis
WIP tender pricing is tracked and monitored by Engineering Services Division. Pricing is
tracked for per metre overall tender costs.
$7,000.00
$4;„0iu�b0.0j0
3"Ou O.'0j0
$2,„000.00
WIP Program Tendered Costing Analysis, Total Price per Metre
20092010201 120122013201420152016?2Oi1T201.8 O' 2L920; Oi2021 022202.3
Piri,ce per metre (ewd IHST
Page 23 of 23