Daryl Abbs, Managing Partner, Watson and Associates Economist Ltd, explained that the purpose of the water and wastewater study is to identify all current and future water and wastewater system capital needs, to identify cost recovery options for capital, to estimate future operating costs over the next 10 years and to recommend new rates to recover the cost of water and wastewater. He stated that water and wastewater billing rates are divided through all Wards. He advised that the wastewater in Ward 2 is not serviced by the Town however, McGregor area is serviced by the Town of Amherstburg. He explained the anticipated growth is gathered through the development charges background study and noted that the Town has healthy reserve balances to fund capital infrastructure.
Mr. Abbs explained that they reviewed capital needs based on the 2023 capital budget, the 10-year forecast, the Town's 2022 Asset Management Plan and the ongoing work by Watson in collaboration with the Town throughout the 2024 Development Charges Background Study. He further explained that the capital works were identified by need, timing and costs. He stated that the increase of rates is based on potential growth through a 10-year annual average base charge and the volume rate increases that are required to meet the needs of water and wastewater forecasts.
Mr. Abbs advised that this meeting is only for Council to receive information on the capital program, the operating program and the proposed water and wastewater rates.
Council directed questions to Mr. Abbs regarding the water and wastewater rates in different wards and in different municipalities.
Mr. Abbs explained that historically the cost of water and wastewater has been segregated by each of the different systems as Wards 1 and 2 are serviced by Union Water Supply System and Wards 3 and 4 use different infrastructure such as the lagoons that are cheaper to operate than a treatment plant. He noted that many municipalities are looking at 10% rate increases every year over 10 years as this is a Provincial Requirement to look at asset management and incorporate that into the analysis and financially plan. He further explained that water rates are higher in Essex opposed to other municipalities such as Tecumseh as it is based on the system and the funding.