ANNUAL WATERWORKS INFORMATION AVAILABLE AT THE MUNICIPAL OFFICE BY SEPTEMBER 1 OF EACH YEAR

(As required under The Municipalities Regulations)

Name of Municipality: Town of Asquith

Date: August 16, 2017

WATERWORKS RATE POLICY

On January 20, 2016, Council passed a bylaw for waterworks rates.

Under the waterworks rate bylaw, the rate of $9.50 per 1000 gallons of water usage was instituted, as adopted under the water bylaw dated January 20, 2016. Council will continue to work towards water works revenues that cover waterworks operating costs. Council will closely monitor waterworks expenditures.

At the end of 2016, Council will review the waterworks policy to work towards waterworks revenues that cover waterworks operating costs.

By planning the waterworks rate increases ahead of time, residents and businesses will be able to prepare for and adjust to the increases. Bylaws will be passed each year for the water rate changes.

 

The rate of $9.50 per 1000 gallons of water usage that was established on January 20, 2016 and was chosen to be an acceptable rate for residents and businesses at that time. The per gallons of water usage water rate does not generate enough waterworks revenues to cover the waterworks operating costs. The rate covers 100% of the waterworks operating costs. Waterworks operating costs, or expenditures, include waterworks’ staff salaries, benefits and training; power; telephone; fuel; heat; insurance; chemicals; repairs; maintenance; supplies; etc.

The $9.50 per thousand gallons used provides the planned per gallons of water usage water rate increases of approximately 10% per year. To demonstrate the impact on residents and businesses, below are estimated monthly charges that reflect the rate increases, which are based on average household consuming 3000 gallons of water each month.

 

Date

Rate Per 1000 Gallons

Estimated Monthly Charge

(based on 3000 gallons)

January 1, 2012

$7.50

$22.50

January 1, 2013

$8.00

$24.00

January 1, 2014

$8.50

$25.50

January 1, 2015

$8.50

$25.50

January 1, 2016

$9.50

$28.50

(Describe the objectives of the waterworks rate policy)

The objective of the waterworks rate policy is to work towards waterworks that are self-financing, where the users pay for the cost of the service. To accomplish this, waterworks rates need to increase over time so that the revenues cover operating costs, to the extent possible. At the end of 2017, Council will review its waterworks policy to determine if revenues are covering costs.

This waterworks rate policy will work towards financially independent waterworks that do not have to compete with other key municipal financial demands under the municipal general fund. This will ensure our waterworks can provide safe drinking water. Also, rates that cover costs will influence consumer demand and water conservation, and self-financing waterworks from the general revenue fund will be reflected in the future mill rates.

WATERWORKS CAPITAL INVESTMENT STRATEGY

On July 9, 2007, Council passed a resolution on a capital investment strategy.

 

The objective of the waterworks capital investment strategy was to address anticipated waterworks infrastructure maintenance, the immediate drinking water infrastructure Problems and future infrastructure replacements in a timely fashion so as to ensure the municipal waterworks provides safe drinking water to residents and businesses. The strategy used the 2004 waterworks system assessment that was required by Saskatchewan Environment for infrastructure planning.

To cover the costs of a new water plant and distribution well, Council undertook a combination of increasing water rates and an infrastructure charge to cover the costs of waterworks operating costs and the long term borrowing that was necessary for the construction of the water plant.

This capital investment strategy will ensure that safe drinking water can be provided to the residents and businesses in the community in the present and future.

Capital plans have been established to address the water works infrastructure deficiencies and replacements as identified and prioritized in the 2015 waterworks assessment to ensure safe drinking water. The current waterworks capital plans and planned sources of funding are as follows:

Project Planned Year of Completion 2010 Cost Future Cost* Source of Funding

WaterMain/Sewer Trunk 2010/11 660,000 719,400 Operating,Grants

Water Plant and

New Well 2010-11 1,965,000 2,138,000 Operating, Reserves,

Borrowing

Lift Station 2017 1,500,000 1,545,000 Grants, Borrowing

 

*Assuming a 3% rate of inflation per year. Future cost of the lift station is based upon actual tender.

For future waterworks capital plans, projects will be prioritized based on what is needed to ensure safe drinking water.

ANNUAL FINANCIAL OVERVIEW (of the previous calendar year)

Total 2016 waterworks revenues (as reported in the Financial Statements) (R) - $198,940

Total 2016 waterworks expenditures (as reported in the Financial Statements)(includes interest paid on waterworks infrastructure loans) (E) - $255,132

Total debt payments on waterworks infrastructure loans (D) – $70,056

Comparison of waterworks revenues to expenditures plus debt payments, expressed as a ratio –

(198,940) = .61

(255,132)+(70,056) 1

For 2016, waterworks revenues covered 61% of the waterworks operating expenditures because of an extraordinary amount of water lines breaks over the winter.

Amount of 2016 waterworks revenues transferred out of the utility, specifying where the revenues were transferred - $0.

Amount of 2016 supplementary funding required to cover expenditures, specifying the source of the supplementary funding – $126,248 – General Revenue

RESERVES

There are currently no reserves available for waterworks capital infrastructure - $0

ATTACHMENTS

  • Available for a cost of $50.00 is the 2015 waterworks system assessment, as required under section 35 of The Water Regulations, 2002.

There are no agreements for waterworks services.