2021-2024 Water and wastewater rates

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Consultation has concluded

October 16, 2020

Update

A summary of public feedback on the proposed water and wastewater rates was before County Council on October 14. This report recommended the following changes to the original Council report in August 2020 based on community feedback:

  • Recognizing the impact of COVID-19 on the economy and individual households, water and wastewater consumption (usage) rates for 2021 are proposed to remain at the 2019 rate, as they were reduced in June 2020.
  • Following concerns about the rate of increases, in addition to the 2021 freeze on consumption rates, 2021-2024 fixed rate increases (to operate and maintain the systems) are proposed to be scaled back.

Council report CS 2020-40 - Water and Wastewater Rates 2021-2024 was deferred to a future date. Please check back for an update on Council decision.




August 18, 2020

Setting water and wastewater rates

Oxford County sets its water and wastewater rates every four years through municipal by-law. This year's rate study sets the rates for 2021-2024 effective January 1, 2021, pending County Council approval.

The rate study calculates new rates for the next four years based on a number of factors. To understand rates, it's important to know that:

  1. Water and wastewater are separate charges on a billing.

  2. Each of water and wastewater charges are made up of two parts: a fixed charge, which covers the shared costs of operating and maintaining the system, and a consumption charge based on your own individual usage.





Watch the Hemson Consulting recording from County Council (Aug 12, 2020)



What's different

The key recommended changes in the 2021-2024 rate study are:

  • Harmonize the wastewater "fixed" charge for all township customers. For residential billing purposes, this would establish a single "township" wastewater fixed charge for each of Drumbo, Embro, Innerkip, Mt. Elgin, Norwich, Plattsville, Tavistock and Thamesford. Oxford's townships already pay the same fixed rate for water.
  • Harmonize the wastewater "consumption" charges for all ICI customers. This rate would be set at the lowest common rate across the County (Woodstock). Right now, there are different ICI wastewater consumption rates depending on where your business or organization is located.
  • Retire the Source Water Protection Program fee from bills. This charge, which amounts to approximately $1.20 on every water bill, was introduced to fund the County's four source water protection plans. The program is now transitioning to long-term monitoring and maintenance under the Public Works operating budget.


TABLE: Proposed changes in the 2021-2024 Water and Wastewater Rate Study



How rates are calculated

The County provides municipal water services to 21 communities, 11 of which also receive wastewater (sanitary sewer) services. Water and wastewater rates are set every four years to cover operating costs as well as future capital investment that ensures the systems run safely, efficiently and sustainably into the future. Both water and wastewater rates are calculated based on a customer's water consumption.

The factors that are used to calculate rates include:

  • past water consumption levels, in this case 2012 to 2019 usage for city/town systems and 2018 and 2019 for the township systems
  • budgeted operating and maintenance costs
  • planned capital upgrades or replacements for the coming 10-year period as well as reserves needed to carry out that work
  • other fees, charges and grant funding that impact water and wastewater services, for instance, federal program funding, source water protection, construction charges, etc.

Read the full summary of how the proposed 2021-2024 Water & Wastewater Rates were calculated
New: FAQ: Water and wastewater rate setting

GRAPHIC: Water and Wastewater Rates Calculation Methodology

Click here to download this chart



Give your feedback

PLEASE NOTE: The comment period has now closed. For a summary of public feedback, please read CS 2020-40 - Water and Wastewater Rates 2021-2024

You can submit comments or questions using the tabs at the bottom of this page or clicking below. We are taking feedback from the public until September 18, 2020.

If you would like to mail a written submission directly to the project lead, please send to:

Carolyn King, CPA, CA | Manager, Finance
Oxford County, PO Box 1614, 21 Reeve Street, Woodstock, ON N4S 7Y3



October 16, 2020

Update

A summary of public feedback on the proposed water and wastewater rates was before County Council on October 14. This report recommended the following changes to the original Council report in August 2020 based on community feedback:

  • Recognizing the impact of COVID-19 on the economy and individual households, water and wastewater consumption (usage) rates for 2021 are proposed to remain at the 2019 rate, as they were reduced in June 2020.
  • Following concerns about the rate of increases, in addition to the 2021 freeze on consumption rates, 2021-2024 fixed rate increases (to operate and maintain the systems) are proposed to be scaled back.

Council report CS 2020-40 - Water and Wastewater Rates 2021-2024 was deferred to a future date. Please check back for an update on Council decision.




August 18, 2020

Setting water and wastewater rates

Oxford County sets its water and wastewater rates every four years through municipal by-law. This year's rate study sets the rates for 2021-2024 effective January 1, 2021, pending County Council approval.

The rate study calculates new rates for the next four years based on a number of factors. To understand rates, it's important to know that:

  1. Water and wastewater are separate charges on a billing.

  2. Each of water and wastewater charges are made up of two parts: a fixed charge, which covers the shared costs of operating and maintaining the system, and a consumption charge based on your own individual usage.





Watch the Hemson Consulting recording from County Council (Aug 12, 2020)



What's different

The key recommended changes in the 2021-2024 rate study are:

  • Harmonize the wastewater "fixed" charge for all township customers. For residential billing purposes, this would establish a single "township" wastewater fixed charge for each of Drumbo, Embro, Innerkip, Mt. Elgin, Norwich, Plattsville, Tavistock and Thamesford. Oxford's townships already pay the same fixed rate for water.
  • Harmonize the wastewater "consumption" charges for all ICI customers. This rate would be set at the lowest common rate across the County (Woodstock). Right now, there are different ICI wastewater consumption rates depending on where your business or organization is located.
  • Retire the Source Water Protection Program fee from bills. This charge, which amounts to approximately $1.20 on every water bill, was introduced to fund the County's four source water protection plans. The program is now transitioning to long-term monitoring and maintenance under the Public Works operating budget.


TABLE: Proposed changes in the 2021-2024 Water and Wastewater Rate Study



How rates are calculated

The County provides municipal water services to 21 communities, 11 of which also receive wastewater (sanitary sewer) services. Water and wastewater rates are set every four years to cover operating costs as well as future capital investment that ensures the systems run safely, efficiently and sustainably into the future. Both water and wastewater rates are calculated based on a customer's water consumption.

The factors that are used to calculate rates include:

  • past water consumption levels, in this case 2012 to 2019 usage for city/town systems and 2018 and 2019 for the township systems
  • budgeted operating and maintenance costs
  • planned capital upgrades or replacements for the coming 10-year period as well as reserves needed to carry out that work
  • other fees, charges and grant funding that impact water and wastewater services, for instance, federal program funding, source water protection, construction charges, etc.

Read the full summary of how the proposed 2021-2024 Water & Wastewater Rates were calculated
New: FAQ: Water and wastewater rate setting

GRAPHIC: Water and Wastewater Rates Calculation Methodology

Click here to download this chart



Give your feedback

PLEASE NOTE: The comment period has now closed. For a summary of public feedback, please read CS 2020-40 - Water and Wastewater Rates 2021-2024

You can submit comments or questions using the tabs at the bottom of this page or clicking below. We are taking feedback from the public until September 18, 2020.

If you would like to mail a written submission directly to the project lead, please send to:

Carolyn King, CPA, CA | Manager, Finance
Oxford County, PO Box 1614, 21 Reeve Street, Woodstock, ON N4S 7Y3



Consultation has concluded

Ask us your question about the 2021-2024 Water and Wastewater Rate Study. We'll respond within 2-4 business days and post your question with an answer here. Please note that your question may be included as shown in a report to County Council. 

  • Share on Facebook Share on Twitter Share on Linkedin Email this link

    What is the cost of water and sewer in St Thomas and Stratford? This should be approx. the same for Woodstock. Ever since the county took over the rates keep going up and up. Woodstock cannot accept sewage from the neighboring areas. The population of Woodstock is expected to be approx. 60,000 within the next 20 years. You live in cities to keep your expenses low. This is not the case for Woodstock residents. County has too much say.

    bean asked over 3 years ago

    Woodstock’s combined water and wastewater rates are currently-- and also with the proposed increase for 2021-- lower than the rates for London, Stratford, Waterloo, Brantford, St. Thomas, Kitchener and Cambridge. (You can reference this in the presentation to Council from August 12 that is posted to the web page: https://speakup.oxfordcounty.ca/14897/widgets/58044/documents/38209, page 15). 

    Woodstock’s system does treat minor wastewater flows from other systems; each of those systems is charged fees based on the percentage of flows that the Woodstock plant treats. The funds received are used to operate and maintain the Woodstock wastewater system. Based on the Municipal Act, the County is responsible for the delivery of all the water and wastewater systems within its borders. 

    We hope this addresses your comments.  

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    I would like to know what the reserve fund is for with regard to water and sewer rate increases. I read in WOW that "The last time rates were set in 2016, it was estimated that there would be approximately $10 million in reserves by 2020. Right no, that's sitting at $31.3 million - way more than projections." So what would this reserve fund be used for and why do we have to keep setting money aside for it when it is plentiful?

    Lesley asked over 3 years ago

    Thank you for your question. The amount of reserves have increased for Woodstock’s systems beyond the original estimates because of a number of factors: projects were delayed (funds not spent yet); some projects were re-evaluated and not pursued during the previous rate study (will start in the future); there were savings on some projects that were completed; and, development charge revenues were collected for past projects. 

    As examples, work on Woodstock’s wastewater treatment plant and a wastewater receiving station project still need to take place, and the County Rd 17 Booster Station and watermain is currently in progress. These types of infrastructure projects are costly to undertake. For example, the upgrades to the Woodstock Wastewater Treatment Plant are expected to cost more than $10 million over the next 8 years. 

    In addition, it is considered a best practice among municipalities to have sufficient reserves to cover any unanticipated or even catastrophic incidents. (The downtown London, Ontario, sinkhole is an example of this kind of event.) All municipalities are required by the Government of Ontario to have an Asset Management Plan in place specifically so they are prepared to deal with aging infrastructure as well as future growth in their communities.   

    It is important to note that any balance in the reserves earns interest revenues, which is re-invested back in into the system. This means that the funds designated for Woodstock’s water and wastewater system will only ever be used for the Woodstock’s system.

    We are listening to feedback from the community and will consider as part of the rate study final report to Council. 

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    Will the boundary adjustment being proposed affect the future rates for INgersoll residents? - It was estimated at one time to cost $23 million to service the lands South of the 401

    The outlier asked over 3 years ago

    In the case of boundary adjustments, newly serviced properties would pay:

    • a one-time capital cost; and,
    • monthly water and wastewater charges based on the system’s water and wastewater rates.

    At this time, it is unknown what the one-time capital cost will be. 

    Current residents do not pay for growth: this extension will be recovered through direct capital billing to the benefiting property owners and from development charges. 

    Future rates in Ingersoll will be reviewed as part of the next water rates study and will be based on the number of customers planned during that timeframe.

    We hope this answers your question. 

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    I do not understand why my water/sewer charges are so high for 2 people here in Drumbo. My average bill per month is $114-$129 Why? My Gas bill is $73, Hydro $106 Will this future rate increase or decrease this shocking amount?

    Noel asked over 3 years ago

    Hello: The proposed changes will reduce the fixed wastewater rate for Drumbo. To review the proposed rates for all townships, please see the rates package in the “Documents” section: the proposed monthly charges for township water rates are on page 30, and the proposed monthly charges for wastewater rates are on page 34. (https://speakup.oxfordcounty.ca/14897/widgets/58044/documents/38114)

    Drumbo’s water and wastewater rates are calculated based on the costs to operate and maintain the system among the number of system users (customers). Starting on page 24 of the document above, you can see more about how the proposed rates for the townships were calculated for 2021-2024. 

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    In the Townships they are all seeing reductions which is strange given the disparity between the system fees before - Is their savings due to a blended County Wide rate? I also only see annual estimates - What will the fixed rates be for the different systems and the County consumption rate.? per Cu Metre - I am curious if folks that use little water will see a representative savings - Previously the Fixed Charges were significantly higher portion than the actual use

    Tim Lobzun asked over 3 years ago

    Thank you for your question. The savings that will be achieved through a blended township fixed rate for wastewater (Woodstock, Ingersoll and Tillsonburg each have their own rate) are from flexible financial terms and economies of scale when completing operational and capital works. 

    For rates, in the Documents, you’ll find the rates package that shows the proposed monthly charges for water rates (pages 27-30) and the proposed monthly charges for wastewater rates (pages 31-34).

    As for potential savings that some customers may see, it’s important to note that for the average residential user, the fixed charges (costs of operating and maintaining the system) are the largest part of a customer’s bill and do not change in direct proportion to the water that is used.

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    Why is Ingersoll's rates so high compared to Tillsonburg - Ingersoll is a very compact system by comparison with a population density of around 1,000/sq km versus 710/ sq km in Tillsonburg.

    The outlier asked over 3 years ago

    Rates in Ingersoll are higher than in Tillsonburg primarily because of two factors: 

    • the type of the infrastructure installed in Ingersoll versus Tillsonburg. Ingersoll’s pipes require additional maintenance and flushing programs. (There is a replacement program in place to update Ingersoll pipes.) 
    • the groundwater that supplies Ingersoll’s water system requires more treatment before it can be distributed to households, and the wastewater requires more treatment before being released into the ecosystems.


    Thank you for your question.

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    Are storm water fees additional in all areas of the county? As a resident of Plattsville, we recent had to pay thousands of dollars per house for storm water sewer replacement (capital project). If all rates are going to be the same across the county, does that also include stormwater costs throughout the county?

    Sally asked over 3 years ago

    Thank you for your question. No, the County does not charge user fees for stormwater: this is a local municipality responsibility (township, town or city). To clarify, we are not proposing that all water and wastewater rates will be the same across the County. The proposed changes are:

    • making the Township wastewater systems fixed rate the same.  Township systems include Drumbo, Embro, Innerkip, Mt. Elgin, Norwich, Plattsville, Tavistock and Thamesford. Woodstock, Ingersoll and Tillsonburg would each still maintain their separate wastewater rates fixed rates, as they do now for water. 
    • making the ICI (industrial, commercial and institutional) consumption rate the same across the County. Note the wastewater consumption rate is already the same for residential users across the County, so this change only affects ICI customers. 
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    Why are taxes so high for residents that have wells and septic systems. Then we also pay for garbage collection. Then to top it off the recycling services have taken multiple steps backwards. I cant believ some of the items I now have to put in the garbage. This needs to move forward

    Kathleen asked over 3 years ago

    Water and wastewater charges are a “user pay” system and are not included in the calculation of a resident’s taxes. Residents are billed monthly for water and wastewater charges, and the money received is only used to pay for the water and wastewater systems in their community.

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    I am unsure of how these proposed changes will actually effect our water bill in Plattsville. We have lived here for 9 years and the water bill used to be reasonable, now it’s insane, and the water is horrible, and the cost is a constant complaint from most in town, even bigger complaint from those who have relocated to our beautiful town, where they get horrid water for more money.

    MrsDonahue asked over 3 years ago

    The proposed changes would lower the wastewater fixed charge in Plattsville.  In the "Documents" section of this section, the one labelled, "2021-2024 Water and Wastewater Rates Package" shows the proposed change in the monthly rates (page 30 for Water and page 34 for Wastewater). You download this document here: https://speakup.oxfordcounty.ca/14897/widgets/58044/documents/38114

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    My wastewater bill now is the same outrageous price, or at least within a few dollars no mater how much water I use. I am a single person in a home. My water consumption is about 5 m3 and costs me about $85-$90 per month. I believe it is fixed rate now because in the summer my usage will go to 11 because of watering but the cost doesn't change. My water is already more expensive than my hydro so please tell me if that is going to change. Is it going to increase again? Why wouldn't we bill according to usage so we at least try to be somewhat conservative in the usage

    Peggy Myall asked over 3 years ago

    All County properties with a water meter are currently charged both a fixed charge and a consumption charge based on usage. If you generally use the same amount of water each month, the bill should not change much month to month, and this is not a proposed change for 2021-2024.  

    The County uses a combination of a fixed charge and a consumption charge because there are costs to operating and maintaining the system that do not change in direct proportion to the water consumed by customers, and there are costs that do change in direct proportion to the water consumed. If you think there may be an issue with your billing, please call your billing agent: the information is located on your monthly bill. 

    Thank you for sending us your question-- we hope this explanation helps.