Item - 2019.BU2.1

The Budget Committee:

1.  Deferred the consideration of item BU2.1 to the February 13, 2019 meeting of the Budget Committee along with the following motion:

Motion 1b by Councillor Mike Layton:

"That City Council direct that, effective January 1, 2019, City Council approve that the industrial waste surcharge program formula for the calculation of surcharge fees be applied to all treatable parameters that exceed the sewers by-law limits, instead of only the one parameter that exceeds the sewer by-law limits by the greatest amount, allowing full cost recovery for the wastewater services provided by the City, such surcharge to be phased in over a six year period to mitigate impacts to existing companies."

2.  Requested budget briefing notes as follows:

1. The General Manager, Toronto Water on:

a. examining the options for modifying the Block 2 Water Rate to provide economic benefits for large water consumption manufacturer's and present the implications for the increase of the discount rate using a range of 1 percent to 5 percent and consider a phase-in of options over a number of years.

b.  a list of the businesses charged under the Industrial Water Surcharge Program, and the parameters that they are exceeding to receive the surcharge; and

c.  a recommendation to move the Industrial Water Surcharge Program toward full cost recovery.

This report presents the recommended 2019 water and wastewater consumption rates and service fees arising from the concurrent adoption by City Council of the recommended 2019 Toronto Water Operating and Capital Budgets.  

In accordance with the City Council 10 year capital plan approved in 2015, this report recommends a 3.98 percent water and wastewater consumption rate increase, effective April 1, 2019, which is the equivalent of a 3 percent annualized increase in 2019.  In addition, this report recommends inflationary fee increases for certain existing water and wastewater service fees, reflecting cost recovery for these services.  

This report also seeks Council authority to proceed with the implementation and monitoring of a proposed two-year bulk water fill station pilot project at Toronto Water's Disco Yard location (Bulk Water Pilot) or alternate Toronto Water location, subject to a report back to the Infrastructure and Environment Committee, and the establishment of a related new bulk water service fee for any metered water dispensed to customers at the bulk water fill station, based on the Block 1 water and wastewater consumption rate (Bulk Water Fee), to offset the costs of the Bulk Water Pilot (additional details in Appendix A).

The recommended 2019 water and wastewater consumption rates, service fees and the Bulk Water Fee will allow the Toronto Water Program to remain fully self-funded and financially stable, with both operating and capital needs being met without excessive year-over-year fluctuations in pricing over the long term.