Item - 2023.EX1.3

The Executive Committee recommends that:  

1. City Council adopt:

a. Effective January 1, 2023, an interim 3 percent rate increase to the combined water and wastewater consumption rates (paid on or before the due date) charged to metered consumers as shown below and in Appendix B to the report (November 22, 2022) from the Chief Financial Officer and Treasurer and the General Manager, Toronto Water; 

b. Effective January 1, 2023, an interim increase of 3 percent to the water and wastewater consumption rates (paid on or before the due date) charged to flat rate consumers, as set out in Appendix B to the report (November 22, 2022) from the Chief Financial Officer and Treasurer and the General Manager, Toronto Water;

c. Effective January 1, 2023, the water and wastewater interim service fees, as set out in Appendix C attached to the report (November 22, 2022) from the Chief Financial Officer and Treasurer and the General Manager, Toronto Water;

2. City Council adopt, with respect to assistance for low-income seniors and low-income disabled persons:

a. Effective January 1, 2023, the interim water rebate for eligible low-income seniors and low-income disabled persons be set at a rate of $1.3158 per cubic metre, representing a 30 percent reduction from the Block 1 rate (paid on or before the due date);

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 any other necessary Municipal Code Chapters as may be required, to give effect to City Council's decision; and

4. City Council authorize the City Solicitor to introduce any necessary Bills required to give effect to Council's decision and authorize the City Solicitor to make any necessary clarifications, refinements, including stylistic, format and organization, minor modifications, technical amendments or by-law amendments as may be identified by the City Solicitor, the Chief Financial Officer and Treasurer and the General Manager, Toronto Water.

This report recommends the adoption by City Council of 2023 interim water and wastewater consumption rates and service fees as set out in this report. The adoption of these interim rates and fees is requested in advance of the 2023 Tax and Rate Supported Operating and Capital Budgets in order to establish these rates and fees and provide City staff with the necessary authority to implement the interim new rates and service fees effective January 1, 2023, consistent with financial modeling and the rate increase requirements presented during the 2022 Budget Process. These interim rates may be amended by City Council when the 2023 Rate supported Operating and Capital Budgets are approved, which is expected in Q1 of 2023. The interim rates are being proposed separately this year due to the timing of the 2022 Municipal Election which has prevented the City from bringing forward the Rate-Supported Budget Process in advance of 2023. This varies to non-election years which typically allows for Rate-Supported Budgets to be considered by Council in December.     

The 2022 Water and Wastewater Consumption Rates and Service Fees Report, which was approved by City Council, concurrently with the 2022 Operating Budget and 2022-2031 Capital Budget and Plan ("10 Year Plan"), was based on a 10 year financial model predicated on a 3% annual increase in water and wastewater consumption rates, and an annual inflationary increase in water and wastewater service fees, for each year of the 10 Year Plan commencing in 2022 and ending in 2031.

Accordingly, this report recommends, effective January 1, 2023, an interim 3% water and wastewater consumption rate increase and inflationary increases for certain existing water and wastewater service fees, reflecting cost recovery for these services.

The report also provides additional information on water consumption, as well as further details on recommended interim 2023 water and wastewater consumption rates and service fees.