You might see a drop in your water bill in 2020.
Andrew Mirabella, a senior consultant with Hemson Consulting, presented information on current and future water and wastewater rates to the strategic initiatives standing committee on Monday (Dec. 9).
“You’re in a very strong fiscal standing to start 2020,” said Mirabella. “Your water reserves and wastewater reserves are quite healthy, and that means you have sufficient funds to fund operations.”
Mirabella said since the last rate study, the town has advanced its asset management program and had built a robust capital management plan.
At the opening of 2019, the water reserve fund sat at $9,019,000, and the wastewater reserve sat at $16,467,000.
The study presented by Mirabella explored a variety of options moving forward, but the recommendation in the report was for sewer rates to be reduced and for the town to increase the variable rate as an offset of reducing the fixed-rate component from approximately 75 per cent fixed to 60 per cent fixed.
According to Mirabella, this would give users greater control of their water bill.
The summer surcharge would also be eliminated.
The typical water user in Collingwood uses 200 cubic metres per year.
In 2019, residential users paid $0.667 per cubic metre, while the summer surcharge hiked the rate to $1.205 per cubic metre. Fixed charges ranged from $22 to $63 (depending on the diameter of the water meter).
Under the proposed structure, the fixed rate would drop to $17 to $50 for residential properties and water consumption rates would be tiered with the first tier at $0.932 per cubic metre if the consumption is under eight cubic metres per month. The second tier (8-15 cubic metres per month) will be $0.979 per cubic metre, the third (15-150 cubic metres per month) will be 1.072 per cubic metre, and the fourth tier – anything over 150 cubic metres per month -– drops to $0.792 per cubic metre.
Post 2020, users will see a slight increase year over year. The cumulative overall impact of water and sewer would translate to an average two per cent increase per year for a typical residential user.
A final report with complete analysis and recommendations is expected to be brought to council in early 2020, with new rates to be adopted at the same time.
