Archive

Utility rate increases are difficult but needed says councillor

November 21, 2024   ·   0 Comments

By JAMES MATTHEWS

Rate increases recommended in a study of Orangeville’s water and wastewater are going to hit some residents hard.

That’s a fear expressed by Councillor Debbie Sherwood during council’s Nov. 18 meeting.

The rate study report summarizes wastewater and water system capital needs anticipated over the next 10 years.

It also identifies the anticipated capital replacements beyond the 10-year forecast to ensure the town is putting sufficient funding into reserves to cover future water and wastewater replacement costs.

According to a report to council, the total capital expenditure anticipated for the water systems is about $125 million.

This expenditure is anticipated to be funded through grants of $2.39 million, development charge reserves of $15.92 million, development charge debt of $22.4 million, water reserve funds of $41.64 million, and water debt of $39.4 million.

Total capital expenditures anticipated for the wastewater system totals $47 million.

The expenditure is anticipated to be financed through grants of $6.27 million, development charge reserves of $3.31 million, development charge debt of $2.4 million, wastewater reserve of $22.60 million, and wastewater debt of $11.35 million.

The total capital expenditure anticipated for the stormwater system, which handles all precipitation, is about $41 million.

That’s expected to be funded through grants of $3.91 million, development charge reserves of $5.27 million, development charge debt of $1.9 million, stormwater reserve of $18.31 million, and stormwater debt of $13.3 million.

The study outlines all cost adjustments such as anticipated utility, fuel, and chemical increases per year. The total operating expenditures will increase from $1.28 million to $3.15 million which is an average annual rate increase of nine per cent.

Sherwood said the study’s findings opened council’s eyes to several things that need to be done.

“I’m just having a really hard time accepting a 15 per cent increase to the base amount, 10 per cent increase to water, and five per cent to our wastewater,” she said. “I know this is going to be a hard hit on some of our residents.”

But, she said, the information contained in the study’s report does justify the rate increases.

“Especially when we look at having $171 million in assets that we could potentially have to replace,” she said.

Despite being unhappy about the increases, she said she trusts the town’s finance staff and the consultant who worked with them.

“We do need the money put away, especially for the anticipated expenditures that will come many years down the road,” Sherwood said.

“I think many of us are in the same boat,” Mayor Lisa Post said. “It is a difficult one because we know that affordability and economics are challenging right now. With the weight of the infrastructure charges landing on the municipal shoulders, unfortunately we’ve got a lot of capital expenditures coming up.”

Readers Comments (0)