Paying A Fair Rate

Paying A Fair RatePaying A Fair Rate

Notice Regarding NewNotice Regarding New

WATER & SEWER RATESWATER & SEWER RATES

Council Meetings (Open Session)Council Meetings (Open Session) June 18, 2007 – Special MeetingJune 18, 2007 – Special Meeting August 13, 2007August 13, 2007 September 10, 2007September 10, 2007 November 13, 2007November 13, 2007

Several articles in the Glengarry NewsSeveral articles in the Glengarry News

AdvertisementsAdvertisements November 2, 2007 – Standard FreeholderNovember 2, 2007 – Standard Freeholder November 7, 2007 – Glengarry NewsNovember 7, 2007 – Glengarry News

Today’s Meeting – February 11, 2008Today’s Meeting – February 11, 2008

FlyerFlyer

OWNERS and TENANTSOWNERS and TENANTS

Flat Rate Service FeeFlat Rate Service Fee

170170 Rate for waterRate for water

1.601.60 Rate for sewageRate for sewage

1.201.20 Minimum consumptionMinimum consumption

225.00225.00

TOTAL PER YEARTOTAL PER YEAR

$790.00$790.00

Flat Rate Service FeeFlat Rate Service Fee00

Rate for waterRate for water.8445.8445

Rate for sewageRate for sewage.6335.6335

Minimum consumptionMinimum consumption147.80147.80

Total/YearTotal/Year$295.60$295.60

2008200820072007


Rate for waterRate for water .8445.84451.451.45

Rate for sewageRate for sewage .6335.63351.091.09



CORRECTIONSCORRECTIONS






225.00225.00

Total/YearTotal/Year

$790.00$790.00

2008200820072007





225.00225.00


$790.00$790.00

2007 Glen Walter2007 Glen Walter

$603.76$603.76


Rate for waterRate for water .8445.84451.451.45

Rate for sewageRate for sewage .6335.63351.091.09



CORRECTIONSCORRECTIONS

OWNERS and TENANTSOWNERS and TENANTS2008200820072007

HOW DO WE COMPARE?HOW DO WE COMPARE?

““Mr. Sitland (Pembrooke Operations Manager) said in Mr. Sitland (Pembrooke Operations Manager) said in a survey of 80 municipalities, the average rate as of a survey of 80 municipalities, the average rate as of

2006 was $756 per year”2006 was $756 per year”- The Daily Observer- The Daily Observer

Adjusted to 2008Adjusted to 2008==

$785$785

FlyerFlyer






225.00225.00


$790.00$790.00

Ont. Residential Avg.Ont. Residential Avg.

$785.00$785.00


Rate for waterRate for water1.451.45

Rate for sewageRate for sewage1.091.09



2008200820072007

City of Cornwall Water & Sewer Budget Presentation:City of Cornwall Water & Sewer Budget Presentation:BMA Study, 2007 Average Water & Sewer Bill:BMA Study, 2007 Average Water & Sewer Bill:

$700$700

Adjusted to 2008Adjusted to 2008==

$718$718

FlyerFlyer






225.00225.00


$790.00$790.00


$785.00$785.00


$718.00$718.00






2008200820072007

In 2008 Edwardsburg Cardinal rates are again In 2008 Edwardsburg Cardinal rates are again increasing from $460 per year to $500 per year.increasing from $460 per year to $500 per year.

Adjusted to include capitalAdjusted to include capital==

~$800~$800

Water & Sewer Rates doubled in Cardinal in 2007.Water & Sewer Rates doubled in Cardinal in 2007.

Pat Sayeau, Chairman - Finance & AdministrationPat Sayeau, Chairman - Finance & Administration““We could cover our operational costs and our We could cover our operational costs and our

debenture payments, but we couldn't cover our capital debenture payments, but we couldn't cover our capital costs.”costs.”

- Brockville Recorder- Brockville Recorder

FlyerFlyer






225.00225.00


$790.00$790.00


$785.00$785.00


$718.00$718.00

$800.00$800.00






2008200820072007

FlyerFlyer






225.00225.00


$790.00$790.00


$785.00$785.00


$718.00$718.00

$800.00$800.00

Other Communities (2007)Other Communities (2007)

North GlengarryNorth Glengarry

$871.50$871.50

BathBath

$717.96$717.96

AmherstviewAmherstview

$485.64$485.64

OdessaOdessa

$902.16$902.16






2008200820072007

Lancaster SystemLancaster System

IN DEBTIN DEBT

Lancaster System Surplus (Deficit)

$(500,000.00)

$(400,000.00)

$(300,000.00)

$(200,000.00)

$(100,000.00)

$-

2005 2006 2007

Debt from Township ReservesDebt from Township Reserves


IN DEBTIN DEBT

Lancaster System Surplus (Deficit)

$(500,000.00)

$(400,000.00)

$(300,000.00)

$(200,000.00)

$(100,000.00)

$-

2005 2006 2007

Debt from Township ReservesDebt from Township Reserves


IN DEBTIN DEBT• Chart only includes debt from Township reservesChart only includes debt from Township reserves

• Does not include 1998 debenture, paid in 2007Does not include 1998 debenture, paid in 2007• Ironically, that debenture caused due to revenues not covering Ironically, that debenture caused due to revenues not covering

operating costs ($460,000)operating costs ($460,000)

• Does not include the 1976 debenture, which will be paid in 2016Does not include the 1976 debenture, which will be paid in 2016

• Does not include the 2002 debenture, which will be paid in 2012Does not include the 2002 debenture, which will be paid in 2012


IN DEBTIN DEBT• If the entire debt from Township reserves were to be paid off today If the entire debt from Township reserves were to be paid off today

each user would be billed approximately $1000each user would be billed approximately $1000

• Plan to pay off $315,000Plan to pay off $315,000• Future impose feesFuture impose fees• May be paid off in 2019, earlier if growth exceeds expectationsMay be paid off in 2019, earlier if growth exceeds expectations

• Plan to pay off 2007 deficit of $120,000Plan to pay off 2007 deficit of $120,000• Paid off with new rate increasePaid off with new rate increase• May be paid off in 2010 at the earliest, longer if rates are loweredMay be paid off in 2010 at the earliest, longer if rates are lowered

• One of two debentures paid off in 2012, the other in 2016One of two debentures paid off in 2012, the other in 2016

• Even with new rates it will be some time before the Lancaster system Even with new rates it will be some time before the Lancaster system pays off its current debts from the Township reservespays off its current debts from the Township reserves

Rumours AboutRumours About

WATER and SEWER RATESWATER and SEWER RATES• New rates necessary because of Cairnview EstatesNew rates necessary because of Cairnview Estates

• ½ of the $315,000 strategic investment was pre-paying impose ½ of the $315,000 strategic investment was pre-paying impose fees from Cairnview. Without that the cost for water and sewer fees from Cairnview. Without that the cost for water and sewer users in 2001 would have been significantly higher. Because of users in 2001 would have been significantly higher. Because of Cairnview, water and sewer rates will be LOWERCairnview, water and sewer rates will be LOWER

• A bond from any developer doesn’t generate revenue for the A bond from any developer doesn’t generate revenue for the Township, it guarantees payment. Anyone building in Cairnview Township, it guarantees payment. Anyone building in Cairnview will be required to connect to the Lancaster system and pay an will be required to connect to the Lancaster system and pay an impose fee which will reduce the $315,000 strategic investment impose fee which will reduce the $315,000 strategic investment

• New rates necessary because of the repairs to the lagoonNew rates necessary because of the repairs to the lagoon• Rate increases were first proposed before Administration was Rate increases were first proposed before Administration was

even aware repairs were necessary to the lagooneven aware repairs were necessary to the lagoon• Lagoon repairs did not increase expenses for last year, it Lagoon repairs did not increase expenses for last year, it

replaced other capital repairsreplaced other capital repairs• The new rate is not because the South Lancaster system cost more The new rate is not because the South Lancaster system cost more

to build than expected. The new rates are to operate and maintain to build than expected. The new rates are to operate and maintain the system.the system.

Bill 175 (Sustainable Water and Sewer Systems Act) Bill 175 (Sustainable Water and Sewer Systems Act) focuses on full cost recoveryfocuses on full cost recovery

Cost recovery includes:Cost recovery includes:Source ProtectionSource ProtectionOperating costsOperating costsFinancing costsFinancing costsRenewal, replacement and improvement costsRenewal, replacement and improvement costsExtraction, treatment and distribution costsExtraction, treatment and distribution costsOther costs as prescribed by ProvinceOther costs as prescribed by Province

FOCUS on COST RECOVERYFOCUS on COST RECOVERY

Financial plans for systems requiredFinancial plans for systems required Lancaster System will be in a large deficitLancaster System will be in a large deficit

PSAB Accounting ChangesPSAB Accounting Changes Lancaster System will be in a large deficitLancaster System will be in a large deficit

FOCUS on COST RECOVERYFOCUS on COST RECOVERY

We are not recovering our costs in LancasterWe are not recovering our costs in Lancaster

Municipality (2005) Wastewater Collection, Treatment and Disposal (Integrated System): Operating costs for the collection, treatment and disposal of wastewater per megalitre

Wastewater Collection, Treatment and Disposal (Integrated System): Operating costs for the collection, treatment and disposal of wastewater per megalitre

Wastewater Collection, Treatment and Disposal (Integrated System): Operating costs for the collection, treatment and disposal of wastewater per megalitre

Difference from Average

South Glengarry Tp $305,765 591 $ 517 -16.6%

Champlain Tp $357,696 708 $ 505 Alfred and Plantagenet Tp $331,054 571 $ 580 North Huron Tp $348,454 707 $ 493 Clearview Tp $614,686 681 $ 903 Ramara Tp $409,015 564 $ 725 Average = $621South Glengarry Tp AVERAGE $ 621

South Glengarry II* $362,235 591 $ 613 -1.2%

637

Water & Sewer SystemsWater & Sewer Systems

EFFICIENT OPERATIONSEFFICIENT OPERATIONS

Municipality (2005) Treatment and Distribution of Drinking Water (Integrated System): Operating costs for the treatment of drinking water per megalitre NUMERATOR: Operating Costs for Treatment and Distribution of Drinking Water

Treatment and Distribution of Drinking Water (Integrated System): Operating costs for the treatment of drinking water per megalitre DENOMINATOR: Total megalitres of Drinking Water Treated

Treatment and Distribution of Drinking Water (Integrated System): Operating costs for the treatment of drinking water per megalitre Efficiency Measure

Difference from Average

South Glengarry Tp $305,763 379 $ 807 -16.1%

Stirling-Rawdon Tp $308,876 338 $ 914

Asphodel-Norwood Tp $222,780 317 $ 703

Guelph/Eramosa Tp $357,576 354 $ 1,010

Warwick Tp $329,970 351 $ 940

Severn Tp $528,915 309 $ 1,712

Bonnechere Valley Tp $231,698 359 $ 645 Average = $962South Glengarry Tp AVERAGE 344 $ 962

South Glengarry II* $362,233 379 $ 956 -0.6%


EFFICIENT OPERATIONSEFFICIENT OPERATIONS


EFFICIENT OPERATIONSEFFICIENT OPERATIONS Compared to all Ontario Townships in 2005Compared to all Ontario Townships in 2005

WastewaterWastewater - 25.0% more efficient- 25.0% more efficient

- 11.2% more efficient when - 11.2% more efficient when additional additional capital included capital included

Tap WaterTap Water - 41.8% more efficient- 41.8% more efficient

- 31.1% more efficient when - 31.1% more efficient when additional additional capital included capital included


EFFICIENT OPERATIONSEFFICIENT OPERATIONS Everyone is prepared to pay their fair shareEveryone is prepared to pay their fair share

New rates only cover the cost to operate and maintain the systemsNew rates only cover the cost to operate and maintain the systems

The system is not sustainable with the old ratesThe system is not sustainable with the old rates Not sustainable in the short termNot sustainable in the short term Not sustainable for our childrenNot sustainable for our children

Water & Sewer RatesWater & Sewer Rates

ALTERNATIVE BY-LAWALTERNATIVE BY-LAW A Memo provided to Council with an alternative water & sewer rates A Memo provided to Council with an alternative water & sewer rates

by-lawby-law

Alternative by-law is not recommended by AdministrationAlternative by-law is not recommended by Administration

Alternative by-law would provide a cushion to the rates for the first Alternative by-law would provide a cushion to the rates for the first yearyear





162.40162.40


$664.80$664.80





225.00225.00


$790.00$790.00


$785.00$785.00


$718.00$718.00

$800.00$800.00

Minimum bill reduced by 16%Minimum bill reduced by 16%

From the new rates approved in 2007


ALTERNATIVE BY-LAWALTERNATIVE BY-LAW2008 Rates (Alternative By-Law)2008 Rates (Alternative By-Law)2008 Rates (2007 By-Law)2008 Rates (2007 By-Law)


85 + 17085 + 170 Rate for waterRate for water



162.40162.40


$579.80$579.80





225.00225.00


$790.00$790.00


$785.00$785.00


$718.00$718.00

$800.00$800.00

Minimum bill reduced by 27%Minimum bill reduced by 27%

From the new rates approved in 2007




85 + 17085 + 170 Rate for waterRate for water



162.40162.40


$579.80$579.80





225.00225.00


$790.00$790.00


$785.00$785.00


$718.00$718.00

$800.00$800.00

Rates automatically adjusted to cover operating costs plus 10%Rates automatically adjusted to cover operating costs plus 10%

Rate increases capped at 5% (Council approval required to exceed)Rate increases capped at 5% (Council approval required to exceed)




ALTERNATIVE BY-LAWALTERNATIVE BY-LAW

Lancaster system asset value (original pricing)Lancaster system asset value (original pricing)

$13,000,000$13,000,000 Consultant recommends 2% required for capitalConsultant recommends 2% required for capital

$260,000$260,000 2008 Lancaster Capital Budget2008 Lancaster Capital Budget

$120,000$120,000 Difference between budget and requirementDifference between budget and requirement

Government fundingGovernment funding• There will not be a lot of government funding availableThere will not be a lot of government funding available• You can only get government funding for certain capital You can only get government funding for certain capital

expenses – except for 2007 we haven’t had capital expenses – except for 2007 we haven’t had capital expenses for a number of yearsexpenses for a number of years

Debt financingDebt financing Rate adjustmentsRate adjustments

Lancaster RatesLancaster Rates 20072007

$295.60$295.60 2008 New Rates2008 New Rates

$790.00$790.00 2008 Alternative2008 Alternative

$579.80$579.80

’’08 Ont. Residential Av.08 Ont. Residential Av.

~$750.00~$750.00

Lancaster RatesLancaster Rates 20092009

~$681.00~$681.00** SUBJECT TO CAPITAL PLANSUBJECT TO CAPITAL PLAN

Glen Walter RatesGlen Walter Rates 20072007

$603.76$603.76 2008 New Rates2008 New Rates

$790.00$790.00 2008 Alternative2008 Alternative

$579.80$579.80

’’08 Ont. Residential Av.08 Ont. Residential Av.

~$750.00~$750.00

Glen Walter RatesGlen Walter Rates 20092009

~$681.00~$681.00** SUBJECT TO CAPITAL PLANSUBJECT TO CAPITAL PLAN



Administration Does Not SupportAdministration Does Not Support


Although small, Lancaster will continue a deficit in 2008 ($8,000)Although small, Lancaster will continue a deficit in 2008 ($8,000) Although Lancaster rates increase in 2008 by 96%, Glen Walter Rates Although Lancaster rates increase in 2008 by 96%, Glen Walter Rates

decrease by 4%decrease by 4% How is that possible? Because Council has kept Lancaster rates as low as How is that possible? Because Council has kept Lancaster rates as low as

possible for as long as possible. And it is no longer sustainable.possible for as long as possible. And it is no longer sustainable. The 2008 rates are substantially lower than the Provincial averageThe 2008 rates are substantially lower than the Provincial average The by-law as passed last year brings the rates closer in line with the The by-law as passed last year brings the rates closer in line with the

Provincial averageProvincial average

Administration continues to support the new rates as approved in 2007Administration continues to support the new rates as approved in 2007

Documents

Paying A Fair Rate