Water and Wastewater Rate Study

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The Town of South Bruce Peninsula is undertaking a water and wastewater rate study. The study Public Information Presentation is available for viewing at https://www.southbrucepeninsula.com/en/town-hall/water-and-sewer-reports.aspx (Please note that there is a newer version of the presentation slides under "Documents" as some of the values have been adjusted to reflect the 2022 rates as a starting point)

The study aims to explore funding options that will be fair and equitable for all customers, as well as ensure that the water and wastewater systems are properly funded to remain sustainable for years to come.

Although the study also includes a review of the Wiarton wastewater (sanitary sewer system), It’s important to note that the Wiarton wastewater rates have no bearing or impact on rate structures being considered for the Amabel or Wiarton water systems.

This study is still in “draft” and not yet been adopted by Council. Council wants to hear from you prior to making any decisions regarding the proposed rate structures, as such, you are receiving this letter to provide you with the opportunity to comment.

Your Opinion is important. Council is seeking input from the users of the water and wastewater systems before choosing the formula to adopt as part of the Rate Study. The study examines all of the water systems’ financial needs over a 25-year period and proposes water rates for the next ten (10) years, under two scenarios.

Option 1:

This is a status quo option wherein the Wiarton water system and the Amabel water system continue to be funded on a completely separate basis.

Option 2:

Merging the rates of the Wiarton and Amabel water systems, blending the Water Rates over a five (5) year period (2023-2027) inclusive. In this scenario Amabel water customers will see a 54% decrease in “fixed” rates, fully phased in by 2027.

The example below shows the impact of the “Blended” water rates on an average water consumer in Amabel including “fixed rate” and “consumption” rate

2021 average monthly water bill $136.28

Proposed 2027 average Monthly water bill $86.22

Total savings monthly $50.06 or $600.72 annually

There is no impact on the fixed rates and cost for Wiarton customers under either scenario. Wiarton will have access to Amabel’s existing reserve fund balances ($1.2 million) to assist with financing capital projects on the Wiarton water system. Secondly, lower reserve contributions ($2.2 million vs $3.2 million) would be required from Wiarton water users over the next 5 years with a blended rate structure.

Advantages of the blended water rate scenario:

  • Wiarton water Customers - Access to Amabel water reserve funds that will help offset upcoming required capital improvements within the 10-year horizon.
  • Amabel Water Customers - Substantial reduction in water “fixed” rates that will see an average water user save approximately $600 annually. Beyond the 10-year horizon, Amabel will benefit from combined reserves.

Council is asking you to weigh in on which option you prefer. This is being conducted via a brief online survey.

To access your survey, please click the survey link below.

Please note that in order to participate in the survey, you will be required to create an account on Open Mic. You can opt-out of communications at any time. You will also be asked for your water account number, so please keep it handy when accessing the survey.

Should you have any questions, please contact the following staff; contact information is also provided under "Who's Listening".


Operational related questions

Lara Widdifield, C.E.T.

Director of Public Works

519-534-1400 x 133

lara.widdifield@southbrucepeninsula.com


Financial related questions

Michael Humble CPA,CGA

Director of Financial Services / Treasurer

519-534-1400 x 106

michael.humble@southbrucepeninsula.com

The Town of South Bruce Peninsula is undertaking a water and wastewater rate study. The study Public Information Presentation is available for viewing at https://www.southbrucepeninsula.com/en/town-hall/water-and-sewer-reports.aspx (Please note that there is a newer version of the presentation slides under "Documents" as some of the values have been adjusted to reflect the 2022 rates as a starting point)

The study aims to explore funding options that will be fair and equitable for all customers, as well as ensure that the water and wastewater systems are properly funded to remain sustainable for years to come.

Although the study also includes a review of the Wiarton wastewater (sanitary sewer system), It’s important to note that the Wiarton wastewater rates have no bearing or impact on rate structures being considered for the Amabel or Wiarton water systems.

This study is still in “draft” and not yet been adopted by Council. Council wants to hear from you prior to making any decisions regarding the proposed rate structures, as such, you are receiving this letter to provide you with the opportunity to comment.

Your Opinion is important. Council is seeking input from the users of the water and wastewater systems before choosing the formula to adopt as part of the Rate Study. The study examines all of the water systems’ financial needs over a 25-year period and proposes water rates for the next ten (10) years, under two scenarios.

Option 1:

This is a status quo option wherein the Wiarton water system and the Amabel water system continue to be funded on a completely separate basis.

Option 2:

Merging the rates of the Wiarton and Amabel water systems, blending the Water Rates over a five (5) year period (2023-2027) inclusive. In this scenario Amabel water customers will see a 54% decrease in “fixed” rates, fully phased in by 2027.

The example below shows the impact of the “Blended” water rates on an average water consumer in Amabel including “fixed rate” and “consumption” rate

2021 average monthly water bill $136.28

Proposed 2027 average Monthly water bill $86.22

Total savings monthly $50.06 or $600.72 annually

There is no impact on the fixed rates and cost for Wiarton customers under either scenario. Wiarton will have access to Amabel’s existing reserve fund balances ($1.2 million) to assist with financing capital projects on the Wiarton water system. Secondly, lower reserve contributions ($2.2 million vs $3.2 million) would be required from Wiarton water users over the next 5 years with a blended rate structure.

Advantages of the blended water rate scenario:

  • Wiarton water Customers - Access to Amabel water reserve funds that will help offset upcoming required capital improvements within the 10-year horizon.
  • Amabel Water Customers - Substantial reduction in water “fixed” rates that will see an average water user save approximately $600 annually. Beyond the 10-year horizon, Amabel will benefit from combined reserves.

Council is asking you to weigh in on which option you prefer. This is being conducted via a brief online survey.

To access your survey, please click the survey link below.

Please note that in order to participate in the survey, you will be required to create an account on Open Mic. You can opt-out of communications at any time. You will also be asked for your water account number, so please keep it handy when accessing the survey.

Should you have any questions, please contact the following staff; contact information is also provided under "Who's Listening".


Operational related questions

Lara Widdifield, C.E.T.

Director of Public Works

519-534-1400 x 133

lara.widdifield@southbrucepeninsula.com


Financial related questions

Michael Humble CPA,CGA

Director of Financial Services / Treasurer

519-534-1400 x 106

michael.humble@southbrucepeninsula.com

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Page last updated: 29 Jul 2022, 10:00 AM