Item - 2015.BU6.1

Rates and Fees:

1.         City Council adopt, effective March 13, 2015:

a.         the combined water and wastewater consumption rates charged to metered consumers as shown below and in Appendix B to the report (January 13, 2015) from the Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water:

b.         an increase of 8% to the water and wastewater consumption rates charged to flat rate consumers, as set out in Appendix B to the report (January 13, 2015) from the Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water;

c.         the water and wastewater service fees, as set out in Appendix C to the report (January 13, 2015) from the Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water;

d.         the deletion of the Revenue Services fee of $25.50 for water certification, Ref. No. 34, Chapter 441– Fees and Charges, Appendix D, Schedule 2, Water Services; and

e.         the water rebate for eligible low-income seniors and low-income disabled persons be set at a rate of $0.9584 /m3, representing a 30% reduction from the Block 1 rate (paid on or before the due date).

2.         City Council adopt the following policies with respect to reserve and reserve fund adequacy:

a.         the Water Stabilization Reserve (XQ1003) maintain a maximum balance of $12.9 million, with any excess amount to be transferred to the Water Capital Reserve Fund (XR6003); and

b.         the Wastewater Stabilization Reserve (XQ1004) maintain a maximum balance of $17.1 million, with any excess amount to be transferred to the Wastewater Capital Reserve Fund (XR6004).

3.         City Council authorize that the necessary amendments be made to Municipal Code Chapter 441 - Fees and Charges, Municipal Code Chapter 849 - Water and Sewage Services and Utility Bill, and Municipal Code Chapter 681- Sewers, and any other necessary Municipal Code Chapters as may be required, to give effect to Recommendations 1 and 2 above.

Capital Budget:

4.         City Council approve the 2015 Recommended Capital Budget for Toronto Water with a total project cost of $1.121 billion, and 2015 cash flow of $782.403 million and future year commitments of $2.983 billion comprised of the following:

a.         New Cash Flow Funds for:

i.          286 new / change in scope sub-projects with a 2015 total project cost of $1.121 billion that requires cash flow of $42.771 million in 2015 and increases in future year cash flow commitments of $218.605 million in 2016; $227.416 million for 2017; $173.716 million for 2018; $111.014 million for 2019; $129.441 million for 2020; $119.762 million for 2021; $29.548 million for 2022; $28.368 million for 2023 and $39.930 million for 2024; and

ii.         219 previously approved sub-projects with a 2015 cash flow of $683.650 million; and future years cash flow commitments of $630.161 million in 2016; $527.741 million for 2017; $294.364 million for 2018; $186.100 million for 2019; $91.861 million for 2020; $65.631 million for 2021; $56.959 million for 2022; and $52.152 million for 2023.

5.         City Council the 2014 approved cash flow for 122 previously approved sub-projects with carry forward funding from 2014 into 2015 totalling $55.982 million.

6.         City Council approve the 2016-2024 Recommended Capital Plan for Toronto Water totalling $7.275 billion in project estimates, comprised of $149.421 million in 2016; $309.883 million for 2017; $704.947 million for 2018; $934.350 million for 2019; $992.975 million for 2020; $1.063 billion for 2021; $1.085 billion for 2022; $1,001.498 billion for 2023; and $1.034 billion in 2024.

7.         City Council consider the operating costs of $0.820 million net in the 2015, ($898.2 million) net in 2016; ($0.121 million) net in 2017; $5.895 million net in 2018; $5.895 million net in 2019; $2.504 million net in 2020; and $0.050 million net in 2021 resulting from the approval of the 2015 Recommended Capital Budget for inclusion in the 2015 and future year operating budgets.

8.         City Council approve 3 temporary capital positions for the delivery of new 2015 capital projects and that the duration for each temporary position not exceed the life and funding of its respective project / sub-project.

9.         City Council request the Deputy City Manager and Chief Financial Officer in consultation with the General Manager, Toronto Water to advance the 2016 cashflow for the Basement Flooding projects into 2015, should it become evident that greater than planned volume of work can be completed, and that the 2016 – 2024 budgeted cash flows be adjusted accordingly as part of the 2016 Budget process.

10.       City Council request General Manager, Toronto Water to report back with an update on the state of good repair backlog as part of the 2016 Budget Process.

Operating Budget:

11.       City Council approve the 2015 Recommended Operating for Toronto Water of $422.452 million gross, and $658.221 million net in capital-from-current contribution, comprised the following services:

12.       City Council approve the 2015 recommended service levels for Toronto Water as outlined on pages 20, 24 and 28 of the 2015 Staff Recommended Operating Budget for Toronto Water and the associated staff complement of 1,754.65 positions.

13.       City Council grant authority to the City Solicitor to introduce any necessary Bills required to implement these recommendations, subject to any necessary refinements, including stylistic, format and organization, as may be identified by the City Solicitor, the Deputy City Manager and Chief Financial Officer and General Manager, Toronto Water.

14.       City Council request the General Manager, Toronto Water, to initiate and expedite the completion of new Basement Flooding Protection Environmental Assessment studies for the remainder of the City, specifically identified as Study Areas 42 through 67 and in the order of priority as shown in Schedule A of the report (December 18, 2014) from the General Manager, Toronto Water.