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2016 Water and Wastewater RatesCommittee of the Whole
November 16, 2015
Presenter: Mike Mayes – Director, Financial Services/Treasurer
2
Today’s Objectives
1. Approve 2016 water rates
2. Approve remaining 2016 fees and charges
3. Receive update to 6-year water and wastewater financial plan
3
Utility Budget Drivers
• Regional charges for water and wastewater will be increasing 9% per year
• Conservation results in lower consumption• Providing for sustainable asset replacement
– an annual increase of 8.5% • Building rate stabilization reserves• General cost increases required to maintain
health and safety
4
Regional Charges
Wholesale rate increases approved by Regional Council
2016 2017 2018 2019 2020 2021
Water 2.5% 11.7% 8.8% 12.2% 4.8% 4.6%
Wastewater 13.9% 7.2% 9.2% 6.7% 12.1% 1.6%
Combined 9.0% 9.0% 9.0% 9.0% 9.0% 2.9%
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Consumption Trends
YEAR 2016 2017 2018 2019 2020 2021
Consumption in cubic meters per person per year
75.5 73.0 70.6 68.3 66.1 64.0
Projected population 87,519 88,421 89,331 90,251 91,181 92,100
Billable consumption in cubic meters (000’s) without new meters
6,607 6,457 6,311 6,168 6,029 5,892
Billable consumption in cubic meters (000's) with new meters
6,607 6,536 6,465 6,394 6,250 6,110
Billable consumption Growth Rate with new meters
-2.3% -1.1% -1.1% -1.1% -2.3% -2.3%
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Sustainability Measures
• Based on analysis completed for the Capital Financing Sustainability Strategy. It is proposed to increase annual contributions by 8.5% to reach long term financial sustainability.
2015 2016 2017 2018 2019 2020 20210.00%
10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00%
100.00%
55.90% 54.00% 49.40% 48.80% 50.00% 51.50% 53.10%
Capital Reserves as a % of Accumulated Amortization
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Combined 2016 Utility Budget
2015Budget
2015 Projection
2016Budget
Revenue $32,792,152 $31,750,000 $32,843,700
Expenses:
Regional charges $18,234,184 $17,300,000 $18,320,000
Asset Replacement Fund contributions
5,611,065 5,611,065 6,099,460
Operating costs 6,986,388 7,581,362 6,862,679
Debt servicing 1,257,573 1,257,573 1,178,000
$32,089,210 $31,750,000 $32,460,139
Rate Stabilization Fund contribution
$702,942 $0 $383,561
Source: York Region 2015 Water and Wastewater Financial Sustainability Plan
Financial Sustainability
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Rate Re-structuringComparing Newmarket Bills to the York Region Average and Median - 2014
CONSUMPTION 200m3 10,000m3 30,000m3 100,000m3
Meter Size 5/8" 2" 3" 4"
Newmarket $ 914 $ 29,256 $ 87,096 $ 289,536
Average $ 760 $ 34,313 $ 103,208 $ 343,379
Median $ 666 $ 31,475 $ 94,425 $ 314,750
The recommended rate re-structuring would shift some of the burden from low water users (mostly residential) to high water users (commercial and industrial).
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Rate Re-structuringRecommended monthly fixed rate phase-in program
DATEJanuary 1
2016July 12016
January 12017
Base Fixed Rate $28 $28 $30.75
2" Fixed Rate $28 $112 $246.00
3" Fixed Rate $28 $210 $461.25
4" Fixed Rate $28 $350 $768.75
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Recommended Rate Increase
Change
per 100 cubic feet
per cubic metre
per 100 cubic feet
per cubic metre
%
Combined Utility Rates
Taxable Properties $8.932 $3.153 $9.823 $3.468 10.0%
Water
Taxable properties $4.240 $1.497 $4.240 $1.497 0.0%
Non-taxable properties $4.699 $1.659 $4.699 $1.659 0.0%
Flat rate - no meter, monthly $55.043 $58.631 6.5%
Basic charge, monthly $14.000 $14.000 0.0%
Wastewater
Taxable properties $4.692 $1.656 $5.583 $1.971 19.0%
Non-taxable properties $5.042 $1.781 $6.000 $2.119 19.0%
Flat rate - no meter, monthly $53.820 $57.328 6.5%
Basic charge, monthly $14.000 $14.000 0.0%
Average Bill
Residential annual average charge 200m3 $966.60 $1,029.60 6.5%
ICI annual average charge 835m3$2,968.76 $3,231.78 8.9%
Current 2015 Rates 2016 Rates
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Next Steps
For November 23 CoW on the budget:• Further deliberation if required
For November 30 Council:• Approval of water, planning, fire, general and
building
Date and format to be determined• Further discussion and possible workshop on the
updates for the 6-year Water and Wastewater Financial Plans
Thank You
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