Proposed 2023 Water, Sewer & Electrical Rate Increases
The proposed 2023 budgets for water, sewer, and electrical services have been outlined, including operational expenses, revenues, and capital plans. Different scenarios for rate adjustments have been presented, with options to either eliminate the early payment discount or maintain it while increasing rates to cover operational deficits. The financial impact on customers based on these scenarios has been analyzed, highlighting the implications of each approach on annual expenses. Explore the various recommendations and their effects on utility costs going forward.
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Presentation Transcript
Proposed 2023 Water, Sewer & Electrical Rate Increases 1
2023 Sewer Budget 2023 Operational Budget Revenues Expenses $3.38 million $3.38 million Asset Management Reserve Contribution $52,308 2023 Capital Plan $860,000 2
2023 Water Budget 2023 Operational Budget Revenues Expenses $7.13 million $7.13 million Surplus $ 982 (required a 4.86% rate increase for Giants Head Rd Debt) No Asset Management Reserve Contribution 2023 Capital Plan $3,818,500 3
2023 Electric Budget 2023 Operational Budget Revenues Expenses $15.26 million $15.26 million Asset Management Reserve Contribution $608,791 2023 Capital Plan $3,830,000 4
#1: Eliminate 10% Early Payment Discount & Include Asset Management Contributions Recommended Rate Increases Annual 2022 2023 Annual 2023 Increase $ 178.91 / year $ 14.91 / month Water 10.6% $782 /year $961 /year $ 59.48 / year $ 4.96 / month Sewer 3.5% $397 /year $456 /year $ 171.14 / year $ 14.26 / month Electric 0.0% $1,540 /year $1,711 /year $ 409.53 / year $ 34.13 / month Total $2,719 /year $3,128 /year 2022 amounts are net of the 10% payment discount. 2023 amounts have been calculated based on the Elimination of the discount. 5
#2: Keep 10% Early Payment Discount and Increase Rates to Cover Operational Deficits Recommended Rate Increases Annual 2022 2023 Annual 2023 Increase $ 133.89 / year $ 11.16 / month Water 17.13% $782 /year $916 /year $ 25.21 / year $ 2.10 / month Sewer 6.36% $397 /year $422 /year $ 117.83 / year $ 9.82 / month Electric 7.65% $1,540 /year $1,658 /year $ 276.93 / year $ 23.08 / month Total $2,719 /year $2,996 /year 2022 and 2023 amounts are net of the 10% payment discount. 6
#3: Eliminate 10% Early Payment Discount & 4.86% Water Rate Increase 2022 Annual Annual Net Financial Impact 2023 2023 Increase $ 138.00 / year $ 11.50 / month Water $782 /year $920 /year $ 44.04 / year $ 3.67 / month Sewer $397 /year $441 /year $ 171.12 / year $ 14.26 / month Electric $1,540 /year $1,711 /year $ 353.16 / year $ 29.43 / month Total $2,719 /year $3,072 /year 2022 amounts are net of the 10% payment discount. 2023 amounts have been calculated based on the Elimination of the discount. 7
Financial Impact on Customer Not Utilizing the 10% Early Payment Discount Net Financial Impact 2022 Annual 2023 Annual 2023 Increase 2023 Typical #1 No discount + asset contribution #2 Keep Discount and increase all rates #3 No 10% + water rate increase 4.86% $3,021 /year $3,191 /year $ 170.04 / year $ 14.17 / month $ 409.53 / year $ 34.13 / month $3,021 /year $3,328 /year $ 307.72 / year $ 25.64 / month $ 276.93 / year $ 23.08 / month $3,021 /year $3,133 /year $ 112.68 / year $ 9.39 / month $ 353.16 / year $ 29.43 / month 2023 amounts take into account a 2% penalty being applied in Scenario s 1 & 3. 8
Proposed 2023 Water, Sewer & Electrical Rate Increases 1. THAT the Fees and Charges Amendment Bylaw No. 2022-038 receive first, second and third reading. 2. THAT the Water Utilities and Water Rates Amendment Bylaw No. 2022-039 receive first, second and third reading. 3. THAT the Electrical Rates and Regulations Amendment Bylaw No. 2022-043 receive first, second and third reading. Adoption of the three bylaws is scheduled at a special council meeting on December 16, 2022 at 1:00pm 9
