Is it true that Ontario regulations (O-Reg) don’t require a municipality to provide notice to consumers when rates increase? In other words, if a funding model change occurs, do Ontario regulations outline the communication parameters to consumers? 

The Township of Ramara follows all Ontario regulations regarding providing notice to the public when required. As outlined in the Clean Water Act, 2006, and the Township of Ramara’s Notice Bylaw 2023.02, when fees change, it is communicated to the public. Over the past four years, each rate increase has been communicated through the Township of Ramara’s Council agenda, Water and Wastewater Insert, and specific web pages. 

As well more specifically in the Notice Bylaw, it states in the section regarding fees and charges, “Notice to advise that Council will be considering adopting/amending its fees and charges bylaw be posted on the Township's website for 10 days in advance of the bylaw

Fragmentation is the replacement of all or part of a municipal drinking water system with all or part of a non-municipal system.  An example would be a municipal system moving to private wells.

Fragmentation requires permission from the Ministry of Environment. Retaining a municipal drinking water system is a Schedule B project under the Municipal Class EA project. It is a complex process with many site-specific considerations. 

the proposal. A class Environmental Assessment study must demonstrate that fragmentation will not expose users to a drinking water health hazard.

Unfortunately, water and wastewater Grants are rare and very specific.  Often, in order to qualify for a grant, each project needs to be clearly defined and include a Study and Engineering Design already in place.  In the current situation, it is difficult to invest in such studies and engineering costs in advance in hopes of a possible grant when current operational and capital needs must be prioritized to comply with and offer safe drinking water and treated wastewater. 

Our consultants, Tatham Engineering, provided a presentation on May 22 outlining the various options for the Bayshore Village treatment system and have presented them through our Public Information Centre. Please visit our website to learn more about the various options. At this time, Tatham Engineering, the Township Engineers, are reviewing feedback to choose a preferred solution and prepare a study report to present to Council in the summer of 2024. At the meeting, the Council will decide on the allocation of funds for the chosen solution.

Does the Township have a Water Stabilization Fund (WSF) and if so, what is the strategy for the transfer of funds and has it been used? 

As presented on the rate review in February 2024, any surplus from the water and wastewater designated ratepayer’s budget has been put into reserve and is used through the budget process when expenditures are higher than the revenues. Every year through the Audit process, any excess funds are transferred to those reserves.   

Every year, we review all expenditures required to operate and maintain the services.  Over the last few years, after COVID-19, costs have increased significantly to the point where the cost of the replacement of equipment has more than doubled.  During the 2021 rate review, Council decided to increase rates by two percent rather than following the rate increase proposed by Hemson in 2015 to help support residents financially impacted during COVID. A rate review in 2024 was necessary post-COVID; as per Hemson studies in previous years, rates should be reviewed every 3-5 years. 

Development Charges are implemented following studies that are presented and approved by Council.  Notices are made public in respect with the legislation.  Development Charges revenues are used in compliance with the studies and legislation and are reviewed yearly through the Audit process.

The Development Charge presentation by Hemson serves as a comprehensive guide, outlining how development charges will be instrumental in supporting the infrastructure costs required for development.

View the 2024 Proposed Area-Specific Development Charge Background Study

What has the township done to seek operational efficiencies in an effort to reduce utility rates? 

In the Fall of 2020, the Township of Ramara contracted water and wastewater services to Ontario Clean Water Agency (OCWA) to provide effective and efficient services to residents while maintaining service standards and financial sustainability. As part of the contract, the Township has benefited from getting the following resources, plans and strategies.

1. A Computerized maintenance system
2. Supervisory Control and Data Acquisition – SCADA – allowing for integrated data collection and staff monitoring facilities remotely.
3. Process Optimization Study for Bayshore WWTP – Additional expertise to improve plan performance and respond to current and future challenges.
4. 10-year Capital Investment Plan
5. Process Data Management Improvements and Upgrades
6. Energy Efficiencies
7. Emergency Management 

How does the Township measure consumption on a system-wide basis and what fail-safes ensure billing is error free?

This is done through the use of water meters. Water meters are installed at each property with a building using water. These meters read the water usage and the usage is collected by the Township quarterly for billing.

Starting this fall, residents using water and wastewater services will be able to use the Township's new remote meter reading system. This system enables you to monitor your water usage directly from your smartphone or another device, providing you with real-time and up-to-date information at your convenience. Additional details about accessing the system will be provided in the fall water insert and on the Township’s website. 

What is the township’s strategy and implementation plan for repair and replacement since 2011 and how has OCWA supposed achieving this objective.

OCWA prepares a 10 year capital plan for repair and upgrades of systems that is presented to Council yearly.  The capital plan can be found on our website.

As with every department on the Township, the needs are higher than the resources available. Every year, Directors proposes projects which are reviewed and adjusted during the budget process. A Draft budget is then presented to Council and the major projects removed are also included in the presentation to Council. 

No strategy or no study could have predicted the impact of COVID-19 on the cost of equipment and infrastructure.  This is the reason why the Treasurer felt it was time to review the current rates.

The current balance as of December 31^st, 2023 as shown on the Financial Statement:

• Sewer Works Surplus of $2,046,098
• Waterworks Reserve is at zero

It is important to note that at the time this document (2021 Hemson) was prepared, the full impact and fiscal ramifications of COVID-19 were unknown; as such, drinking water and wastewater rates should be closely monitored to ensure revenues are sufficient to cover costs. Given the systems were described as “unsustainable” in Oct 2023, how was this objective met?

This fall, residents using water and wastewater services will be able to use the Township's new remote meter reading system. This system enables you to monitor your water usage directly from your smartphone or another device, providing you with real-time and up-to-date information at your convenience. Additional details about accessing the system will be provided in the fall water insert. The ability to obtain more data on consumption will help the Township to understand consumption trends and make decisions accordingly.  Depending on the results when this data becomes available, there could be some energy efficiencies opportunities when replacing a pump for example. Although the time of use and the energy rates cannot be controlled by the Township, investing in soft start technology could create some savings in the future. 

The strategy used by the Treasurer was to review current and future operational and capital costs and prepare an estimated budget for 2024-2032. Through this process, the Treasurer reviewed different increase scenarios; however, the Treasurer only proposed the lowest rate that would require a minimal increase and financial effect on residents. The current situation requires times to recover from.  Reviewing the rates in 2-3 years and adjusting accordingly based on operational and capital costs was also recommended. 

In the Fall of 2020, the Township of Ramara contracted water and wastewater services to Ontario Clean Water Agency (OCWA) to provide effective and efficient services to residents while maintaining service standards and financial sustainability. As part of the contract, the Township has benefited from getting the following resources, plans and strategies.

1. A Computerized maintenance system
2. Supervisory Control and Data Acquisition – SCADA – allowing for integrated data collection and staff monitoring facilities remotely.
3. Process Optimization Study for Bayshore WWTP – Additional expertise to improve plan performance and respond to current and future challenges.
4. 10-year Capital Investment Plan
5. Process Data Management Improvements and Upgrades
6. Energy Efficiencies
7. Emergency Management

All water systems are considered one system; similar to our road network. Some roads cost more to operate but everybody in the same assessment class (residential for example) pays the same tax rate to finance the roads.

The Township’s Council has determined that it is not pursuing fragmentation of any municipally owned drinking water systems. Fragmentation is the replacement of all or part of a municipal drinking water system with all or part of a non-municipal system.  An example would be a municipal system moving to private wells.

Fragmentation requires permission from the Ministry of Environment. Retaining a municipal drinking water system is a Schedule B project under the Municipal Class EA project. It is a complex process with many site-specific considerations. 

The Ministry will not approve fragmentation unless it can be demonstrated that a safe and reliable source of treated water can be provided for the consumers. The users themselves must agree to the proposal. A class Environmental Assessment study must demonstrate that fragmentation will not expose users to a drinking water health hazard

What is the total amount of money of interest-free loans contributed, to date, to subsidized water and wastewater budgets? Are these amounts disclosed and is Council open to reforming how much detail is provides in township budgetary documents and communications to Ratepayers, specifically itemized breakdown of the budgetary item in question? 

A loan from Infrastructure Ontario was used to finance the sewer extension, with a portion of the funds reserved for future sewer users. This loan requires annual repayment, and the Township is supporting this repayment until development occurs. Connection fees will be imposed to cover the costs of extending the sewers to the development area. Development Charges will be charged to cover the cost of bringing the sewers to the development.  Each new property owner will be responsible to repay their share of the cost.  The total cost of this portion of the loan including interest is $4,081,126 this loan was undertaken back in 2008.

The remaining balance of the loan is included in the annual Financial Statement presented to the Council. As of December 31st, 2023, the balance of the loan, as shown in the Financial Statement, was $3,200,248.

The role of Council is not to review itemized breakdown of the budgetary items. If that was the case, budgets wouldn’t be approved in time for staff to be able to work on projects included in the budget. Through reports to Council, staff provides information for Council to make sound decisions on what projects should be approved. Council is not responsible for day-to-day operations; instead, day-to-day operations are overseen by Staff, Managers, Directors, and the CAO. By approving budgets, the Council authorizes staff to work within the approved budget amounts. If a project exceeds its budget, staff will bring it to the attention of the Council, which has the authority to approve or reject it. This process is part of the procurement policy approved by Council.

At the 2024 Budget Meeting in October 2023, Mayor Clarke disclosed that Ramara Township indirectly subsidises water and sewer rates with interest free loans to the Environmental / Designated Ratepayers’ Budgets, as per township policy.  What is Mayor Clarke referring to and when did these interest free loans begin, has the load been paid? 

If homes were built, they would today be contributing revenues to Environmental/Designated Revenues.

1. How many potentially new water/sewers Users exist in the Village of Brechin?
2. How many potentially new water/sewers Users exist on Ramara Road 47, between the in the Village of Brechin and Lagoon City?

In the 2024 Water/Wastewater Budget, under Revenues, can you provide an itemized breakdown of the $1,439,200 listed as Reserves? 

During the budget process, revenues and expenditures are review and cuts are made to try and balance the budget.  In addition, prior years expenses are estimated until the final the numbers are confirmed a few months later.  When prior years projects are not completed or are completed with some savings, these funds are carried over on futures years through reserves.  During the 2024 Budget preparation, it was estimated that $1,439,200 would be available for 2024.  

ONTARIO REGULATION 244/02

Note: This Regulation was revoked on January 1, 2007. See: O. Reg. 584/06, ss. 11, 12.

I will not comment on a regulation that has been revoked. However, here is the section that addresses water and wastewater:

“(2) The amount of fees or charges for the use of a waste management system, for the use of a sewage system or the consumption of water shall not exceed the cost of providing the waste management system, the sewage system or the water system, as the case may be. O. Reg. 244/02, s. 12 (2).”

This O Reg allows for fees for the USE of sewage system and water consumption. 

The authority to charge fees and charges comes from the Municipal Act, 2001. The act outlines the following:

By-laws re: fees and charges

391 (1) Without limiting sections 9, 10 and 11, those sections authorize a municipality to impose fees or charges on persons,

(a)  for services or activities provided or done by or on behalf of it;

(b)  for costs payable by it for services or activities provided or done by or on behalf of any other municipality or any local board; and

(c)  for the use of its property including property under its control.  2006, c. 32, Sched. A, s. 163 (1).

Section 9, 10 and 11 are about General Municipal Powers.

A municipality can impose fees by adoption a bylaw that sets those fees.  The most recent bylaw for water and sewage service rates is 2024.21 which refers to the same section of the Municipal Act. This bylaw is available on our website.

“What is full-cost recovery?

Full costs for water service is defined by the Sustainable Water and Sewage Systems Act as

“source protection costs, operating costs, financing costs, renewal and replacement costs and

improvement costs associated with extracting, treating or distributing water to the public and

such other costs which may be specified by regulation.” Similar provisions are made for

wastewater services respecting the “collecting, treating or discharging [of] wastewater.”

Recovery of these costs would be provided within the user rates charged to customers of the system.”^1.

1. Towards Full Cost Recovery for Municipal Water and Wastewater

Services: A Guide for Municipal Councils

If there were a loan, it would be for the overall budget, not for specific items listed above.  This would happen when the overall expenditures were higher than the revenues in the current fee structure.  For example, if the rates are set to meet the current year's needs and something happens, like a major break of infrastructure that was not part of the budget, then yes, technically, it could be considered a loan.  When the municipality has more expenditures than revenues, it uses money set aside in reserve.  We can borrow from the other reserves if the water and wastewater don't have reserves.

If there were a loan, it would be for the overall budget, not for specific items listed above.  This would happen when the overall expenditures were higher than the revenues in the current fee structure.  For example, if the rates are set to meet the current year's needs and something happens, like a major break of infrastructure that was not part of the budget, then yes, technically, it could be considered a loan.  When the municipality has more expenditures than revenues, it uses money set aside in reserve.  We can borrow from the other reserves if the water and wastewater don't have reserves.