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UTILITYRATE
PRESENTATIONOct 24, 2017
COUNCIL’S MAINOBJECTIVES INCLUDE
...INFRASTRUCTURE
COSTS ASSOCIATED WITH WATER
•Public Works Wages & Benefits•Training/Certification •Permits•Hydro, Telephone, Insurance•Alarm systems•Computers & software•Chemicals
Maintenance and eventual replacement of assets•Water intake •Pump House •Piping•Water Treatment Plant•Fire hydrants
COSTS
Maintenance & ReplacementWill help to prevent...
COSTS ASSOCIATED WITH SEWAGE
•Public Works Wages & Benefits•Training/Certification•Permits•Hydro, Telephone & Insurance•Alarm systems•Computers & software•Chemicals
Maintenance and eventual replacement•Sewer Plant•Polishing ponds•Lift Stations•Piping
COSTS
Maintenance & Replacementwill help to prevent...
COSTS ASSOCIATED WITH GARBAGE
•Public Works Wages & Benefits•Insurance•Fuel•Tipping Fees
Maintenance and eventual replacement•1991 Garbage truck•2013 Garbage truck•Garbage bins
COSTS
Maintenance & Replacementwill help to prevent...
Current Funding Concerns
Water & Sewer infrastructure is approx 40 years old – we need to be reserving funds for future replacement
New Provincial reporting requirements & testing – creates additional time for administration
New standards/codes ‐ need to hire “certified electricians”, Worksafe requires additional staff on site, etc
All PW must be certified for each facility for liability reasons
WHY Fees & Charges Need to Increase
Require reserves for future replacement – even with grants, 25% ‐ 33% is still a min requirement of municipalities◦ $1 mil lift station requires village contribution of $330,000
Funding for studies /consultants to be “grant ready”
Putting more effort and funds into “long term maintenance” provides a longer life of infrastructure
WHY Fees & Charges Need to Increase
Safety codes – need to meet current standards (ie: level II WTP Operator certification, electrical, worksafe)
Ongoing Training
Operating costs increasing – BC hydro, wages, chemicals, parts, security, cell service
We own more infrastructure than “back in the day” that needs to be maintained◦ WTP, STP expansion, Lift Station upgrades, computer programs
Scenarios Scenario 1 -Baseline
Scenario 2 - Full Amortization Funding
(A)Discount
(B)No Discount
Annual Rate Increases 5% first four years, then 3% per year
9.5% first nine years, then 3% per
year
8.5% first nine years, then 3% per
yearResidential Rate - 20 years(Existing Rate $261.78 per year)
$496 $796 $733
Average Annual Dollar Increase $12 $28 $25
Average Monthly Dollar Increase $1.03 $2.34 $2.07
System Reinvestment Funding
Increasing from 10% to 20% of
annual amortization expense
Phase into 100% of annual amortization expense in equal steps
over ten years
Annual Capital Spending(Current day $) $30,000 $50,000 - $200,000
ADDITIONAL COSTS (2017 to 2018)
Yearly $6рΦо8
Monthly $5.4р
Daily $0.18
2017 2018
WATER rate $292.20 WATER rate $319.96SEWER rate $350.66 SEWER rate $383.97GARBAGE rate 65g $143.50 GARBAGE rate 65g $147.у1
TOTAL $ 786.36 $851.т4
2018 Yearly Monthly Weekly Daily
WATER rate $319.96 $26.66 $6.15 $0.88SEWER rate $383.97 $32.00 $7.38 $1.05GARBAGE rate 65g $147.ум $12.он $2.8п $0.40
$851.т4 $70.9у Ϸ16.3т Ϸ2.33
Yearly Monthly Weekly Daily
Utilities $851.74 $70.98 $ 16.37 $2.33
Other Household Utilities
Hydro $1,200 $100 $23.08 $3.29Car Insurance $960 $80 $18.46 $2.63 Cell $900 $75 $17.31 $2.47TV/Internet $900 $75 $17.31 $2.47Home Insurance $780 $65 $15.00 $2.14
Catch Up Prior to 2017:
• Water rates had not increased since 2014• Sewer rates had not increased since 2011• Therefore, we need to continue the 9.5% increase for
2018/2019 to continue catching up to cover increasing expenses
• Anything less than a 9.5% increase for 2018 and 2019 will be considered a decrease causing surplus to be depleted in order to cover expenses
• Future increases would need to be greater than 9.5% to compensate for this
ReservesFrom 2019-2025, the 9.5% will go towards building reserve accts for future infrastructure maintenance and replacement. 2026, rate to decrease to 3% to cover general inflation of expenses and continuation of reserves.
Garbage rate increases have been consistent and incorporate replacement of future garbage truck and garbage bins after 20 years.
Current Surplus 2036 Reserves
Water $300,000 $4,000,000Sewer $370,000 $3,500,000Garbage $0 $185,000
These reserves will be used throughout the 20 years. (ei: will not have $3.5M in sewer bank account after 2036)
8 lift stations will require upgrades/replacement $8,000,000If grant approved, VOV cost 1/3 $2,640,000
In order to apply for grants, municipalities must provide proof that they have their share available. Preparing for loans can take up to 1 year.
• Budget now instead of having to take a loan out later
Water Treatment Plant VOV 1/3 cost of total project
Loan $766,000Interest $514,921Total Cost $1,270,681
• Consider Water Metres for “fairness”
• Consider Bi Annual Billings
• Consider approving increase for a two year term. Additional subdivisions and construction will require budget to be reviewed at a later time.
Name Water Residential RateSewer Flat Rate Annual
ResidentialGarbage Residential Annual
fee TOTAL
Logan Lake $ 75 $ 113 $ 102 $ 290 Zeballos $ 50 $ 255 $ 85 $ 390 McBride $ 229 $ 208 $ 127 $ 564 Enderby $ 215 $ 271 $ 93 $ 579 Chase $ 275 $ 154 $ 160 $ 589 Tahsis $ 288 $ 240 $ 80 $ 608 Houston $ 340 $ 181 $ 110 $ 631 Gold River $ 188 $ 269 $ 204 $ 661 Osoyoos $ 334 $ 238 $ 127 $ 699 Oliver $ 381 $ 236 $ 86 $ 703 Hope $ 263 $ 174 $ 268 $ 704 Armstrong $ 313 $ 313 $ 79 $ 705 Sayward $ 300 $ 232 $ 193 $ 725 Elkford $ 500 $ 147 $ 83 $ 730 Revelstoke $ 395 $ 255 $ 112 $ 762
VALEMOUNT $ 293 $ 351 $ 144 $ 788Hazelton $ 500 $ 238 $ 216 $ 954 Warfield $ 412 $ 413 $ 141 $ 966 West Kelowna $ 433 $ 367 $ 172 $ 971 Prince George $ 499 $ 445 $ 192 $ 1,137 New Hazelton $ 1,000 $ 120 $ 132 $ 1,252 Fort St. James $ 1,000 $ 191 $ 127 $ 1,318 Barriere $ 310 $ 908 $ 112 $ 1,330 Harrison Hot Springs $ 1,500 $ 225 $ 153 $ 1,878 Cumberland $ 1,735 $ 329 $ 94 $ 2,158 Gibsons $ 2,140 $ 212 $ 156 $ 2,508 Chilliwack $ 2,500 $ 125 $ 120 $ 2,746 Surrey $ 2,100 $ 600 $ 283 $ 2,983 North Cowichan $ 3,195 $ 149 $ 83 $ 3,427 Prince Rupert $ 2,779 $ 435 $ 384 $ 3,598
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