2020 Water and Sewer Utility Rates Andy Kwan, Manager, Utilities December 02, 2019
Presentation Outline 1. Overview of Water and Sewer Utilities 2. Water Financial Plan and Rates 3. Sewer Financial Plan and Rates 4. Recommendations 2020 WATER AND SEWER UTILITY RATES 2
1 Overview of Water and Sewer Utilities 2020 WATER AND SEWER UTILITY RATES
Water and Sewer & Drainage Utilities • Stand-alone financial entities, separate from the General Fund • Generally pay as you go, exception was investment in universal meters and Eagle Lake development • Includes Operations & Maintenance and Infrastructure Capital • In 2016 established reserve for both water and sewer 2020 WATER AND SEWER UTILITY RATES
Drivers of Utility Rates • Local revenue requirements • Regional costs • Inflation and materials costs • Long term infrastructure replacement costs • Building capital and operating reserves 2020 WATER AND SEWER UTILITY RATES
Natural Capital • Natural capital assets assessed at a value of nearly $574M on the eco-system services • Creeks, streams, Eagle Lake, etc. are integral to storm water and water system management • Taking care of natural assets is complementary to engineered asset management plans • Natural systems can be better integrated with constructed infrastructure 2020 WATER AND SEWER UTILITY RATES
2 Water Financial Plan and Rates 2020 WATER AND SEWER UTILITY RATES
Five Year Financial Plan Requirements: Water Recommended 2019 Utility Fund Requirements 2019 2020 2021 2022 2023 10.0% 7.0% 5.0% 5.0% 5.0% Recommended 2020 Utility Fund Requirements 2020 2021 2022 2023 2024 5.5% 5.0% 5.0% 5.0% 5.0% 2020 WATER AND SEWER UTILITY RATES
Five Year Financial Plan Requirements: Water Breakdown of Expenditures Water Utility - Proposed Rate Funded Expenses (2020) Debt Service 12% Water Purchases 29% Infrastructure 30% Operating Expenses 29% 2020 WATER AND SEWER UTILITY RATES
Water Rates: Typical Impact • Median single- Single Family Residential Bill Impact family household Greater than $1,000 0% will see an $501 - $1,000 0% estimated annual $301 to $500 1% Changes to Annual Bill Under Proposed Rates increase of $276 to $300 0% $251 to $275 approximately $33 0% $201 - $250 1% over 2019 (5.5%). $176 - $200 1% • Actual impact will $151 - $175 1% vary based on $126 - $150 2% $101 - $125 metered usage. 3% $76 - $100 6% $51 to $75 13% $26 to $50 43% $0 to $25 29% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 2020 WATER AND SEWER UTILITY RATES
How much is a cubic metre of water? • 1 m 3 = 1,000 litres of water • An average garden hose delivers 2,700 litres/hour. 2020 WATER AND SEWER UTILITY RATES
Other Bylaw Changes New Service Fee • 2,000 E-coder water meters in inventory • Capability to provide daily/hourly readings • Data may be valuable to property owners • Proposed “Detailed Meter Reading Fee” of $150 be added to Schedule C - Service Charges. 2020 WATER AND SEWER UTILITY RATES
3 Sewer Financial Plan and Rates 2020 WATER AND SEWER UTILITY RATES
Five Year Financial Plan Requirements: Sewer • Recommended 2019 Utility Fund Requirements 2019 2020 2021 2022 2022 Local 8.0% 6.0% 6.0% 5.0% 3.0% 6.0% 21.8% 28.1% 18.7% Regional 5.8% 6.2% 8.6% 12.1% 9.0% Combined 10.0% • Recommended 2020 Utility Fund Requirements 2020 2021 2022 2023 2024 Local 6.0% 6.0% 5.0% 3.0% 3.0% 12.0% 18.2% 13.1% 14.1% Regional 5.0% 8.5% 11.0% 7.9% 8.5% Combined 6.2% • Alternative 2020 Utility Fund Requirements 2020 2021 2022 2023 2024 Local 6.0% 6.0% 5.0% 3.0% 3.0% 11.8% 10.9% 11.1% 12.3% 12.0% Regional 9.0% 8.0% 8.0% 7.5% 7.5% Combined 2020 WATER AND SEWER UTILITY RATES
Five Year Financial Plan Requirements: Sewer Breakdown of Expenditures Sewer Utility - Proposed Rate Funded Expenses (2020) Storm Operations, 5% Sanitary Operations, 9% Infrastructure & Equipment, 43% Metro Vancouver Sewer Levy, 42% 2020 WATER AND SEWER UTILITY RATES
Sewer Rates: Typical Impact • Median single-family Single Family Residential Bill Impact household will see an Greater than $1,000 0.1% estimated annual $501 to $1,000 0.2% increase of $301 to $500 0.7% Changes from Quarterly Bill Under Current Rates approximately $67 over $276 to $300 0.1% $251 to $275 2019 (6.2%). 0.3% $201 to $250 1.1% • Actual impact will vary $176 to $200 1.1% based on metered $151 to $175 1.7% usage. $126 to $150 3.5% $101 to $125 8.9% $76 to $100 25.0% $51 to $75 45.5% $26 to $50 11.9% $0 to $25 0.0% 0% 10% 20% 30% 40% 50% 2020 WATER AND SEWER UTILITY RATES
4 Recommendations 2020 WATER AND SEWER UTILITY RATES
Finance Committee Recommendations Finance Committee, at the Nov 5, 2019, passed the following recommendations to be forwarded to council: 1. THAT Water Utility fees be increased for 2020 to the amounts set out in Schedules A and B of the proposed “Waterworks Regulation Bylaw No. 4490, 2006, Amendment Bylaw No. 5037, 2019”; and 2. Proposed “Waterworks Regulation Bylaw No. 4490, 2006, Amendment Bylaw No. 5037, 2019” be read a first, second and third time. 2020 WATER AND SEWER UTILITY RATES
Finance Committee Recommendations Finance Committee, at the Nov 5, 2019, passed the following recommendations to be forwarded to council: 1. THAT Sewer Utility fees be increased for 2020 to the amounts set out in Schedules A and B of the proposed “Sewer and Drainage Utility Fee Bylaw No. 4538, 2007, Amendment Bylaw No. 5038, 2019”; 2. Proposed “Sewer and Drainage Utility Fee Bylaw No. 4538, 2007, Amendment Bylaw No. 5038, 2019” be read a first time, second, and third time; and 3. Staff be directed to prepare an additional option that considers smoothing out the increase for the sewer regional levy and other operational expenses. 2020 WATER AND SEWER UTILITY RATES
Staff Recommendation 1. That Water and Sewer Utility fees be increased for 2020 to the amounts set out in the respective bylaws; 2. The respective bylaws be read a first, second, and third time. • Proposed median water bill increase of $33 to $728 annually (5.5%) • Proposed median sewer bill increase of $67 to $1,150 annually (6.2%) 2020 WATER AND SEWER UTILITY RATES
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