2020 Water and Sewer Utility Rates Andy Kwan, Manager, Utilities - - PowerPoint PPT Presentation

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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

SLIDE 1

Andy Kwan, Manager, Utilities

2020 Water and Sewer Utility Rates

December 02, 2019

SLIDE 2

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

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Overview of Water and Sewer Utilities

1

2020 WATER AND SEWER UTILITY RATES

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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

Water and Sewer & Drainage Utilities

2020 WATER AND SEWER UTILITY RATES

SLIDE 5

Local revenue

requirements

Regional costs
Inflation and

materials costs

Long term

infrastructure replacement costs

Building capital

and operating reserves

Drivers of Utility Rates

2020 WATER AND SEWER UTILITY RATES

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Natural Capital

2020 WATER AND SEWER UTILITY RATES

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

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Water Financial Plan and Rates

2

2020 WATER AND SEWER UTILITY RATES

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Five Year Financial Plan Requirements: Water

2019 2020 2021 2022 2023 10.0% 7.0% 5.0% 5.0% 5.0%

2020 WATER AND SEWER UTILITY RATES

2020 2021 2022 2023 2024 5.5% 5.0% 5.0% 5.0% 5.0%

Recommended 2019 Utility Fund Requirements Recommended 2020 Utility Fund Requirements

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Five Year Financial Plan Requirements: Water

Breakdown of Expenditures

2020 WATER AND SEWER UTILITY RATES

Water Purchases 29% Operating Expenses 29% Infrastructure 30% Debt Service 12%

Water Utility - Proposed Rate Funded Expenses (2020)

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Water Rates: Typical Impact

Median single-

family household will see an estimated annual increase of approximately $33

ver 2019 (5.5%).
Actual impact will

vary based on metered usage.

2020 WATER AND SEWER UTILITY RATES

29% 43% 13% 6% 3% 2% 1% 1% 1% 0% 0% 1% 0% 0% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% $0 to $25 $26 to $50 $51 to $75 $76 - $100 $101 - $125 $126 - $150 $151 - $175 $176 - $200 $201 - $250 $251 to $275 $276 to $300 $301 to $500 $501 - $1,000 Greater than $1,000

Changes to Annual Bill Under Proposed Rates

Single Family Residential Bill Impact

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How much is a cubic metre of water?

1 m3 = 1,000 litres of water
An average garden hose delivers 2,700 litres/hour.

2020 WATER AND SEWER UTILITY RATES

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Other Bylaw Changes

2020 WATER AND SEWER UTILITY RATES

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.

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Sewer Financial Plan and Rates

3

2020 WATER AND SEWER UTILITY RATES

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Five Year Financial Plan Requirements: Sewer

Recommended 2019 Utility Fund Requirements
Recommended 2020 Utility Fund Requirements
Alternative 2020 Utility Fund Requirements

2019 2020 2021 2022 2022 Local 8.0% 6.0% 6.0% 5.0% 3.0% Regional 5.8% 6.0% 21.8% 28.1% 18.7% Combined 10.0% 6.2% 8.6% 12.1% 9.0% 2020 2021 2022 2023 2024 Local 6.0% 6.0% 5.0% 3.0% 3.0% Regional 5.0% 12.0% 18.2% 13.1% 14.1% Combined 6.2% 8.5% 11.0% 7.9% 8.5% 2020 2021 2022 2023 2024 Local 6.0% 6.0% 5.0% 3.0% 3.0% Regional 11.8% 10.9% 11.1% 12.3% 12.0% Combined 9.0% 8.0% 8.0% 7.5% 7.5% 2020 WATER AND SEWER UTILITY RATES

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Five Year Financial Plan Requirements: Sewer

Breakdown of Expenditures

Infrastructure & Equipment, 43% Metro Vancouver Sewer Levy, 42% Sanitary Operations, 9% Storm Operations, 5%

Sewer Utility - Proposed Rate Funded Expenses (2020) 2020 WATER AND SEWER UTILITY RATES

SLIDE 16

Sewer Rates: Typical Impact

Median single-family

household will see an estimated annual increase of approximately $67 over 2019 (6.2%).

Actual impact will vary

based on metered usage.

2020 WATER AND SEWER UTILITY RATES

0.0% 11.9% 45.5% 25.0% 8.9% 3.5% 1.7% 1.1% 1.1% 0.3% 0.1% 0.7% 0.2% 0.1% 0% 10% 20% 30% 40% 50% $0 to $25 $26 to $50 $51 to $75 $76 to $100 $101 to $125 $126 to $150 $151 to $175 $176 to $200 $201 to $250 $251 to $275 $276 to $300 $301 to $500 $501 to $1,000 Greater than $1,000

Changes from Quarterly Bill Under Current Rates

Single Family Residential Bill Impact

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Recommendations

4

2020 WATER AND SEWER UTILITY RATES

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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.

Finance Committee Recommendations

2020 WATER AND SEWER UTILITY RATES

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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.

Finance Committee Recommendations

2020 WATER AND SEWER UTILITY RATES

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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%)

Staff Recommendation

2020 WATER AND SEWER UTILITY RATES