Appendix A Financial Principles

Transcription

1 Appendix A Financial Principles 1) The continued use and development of a self sustaining sewer "utility" be confirmed, it being noted that a sewer system with its own revenue and expenses will best meet the objectives of the Sustainable Water and Sewage Systems Act. 2) The life cycle renewal program be increased by an average of $1 million to $1.5 million per year over the next 10 years in order to address the projected $460 million (uninflated) in life cycle renewal needs, it being noted that the total expenditure in any given year on life cycle renewal projects may be adjusted in order to accommodate other types of projects and stay within the available funding and debt caps. 3) ncremental improvements be made to the sewer system to keep in step with Provincial and Federal legislation. 4) Sewerage works, that would otherwise be funded by industrial development charges (DC) and the exempt portions of commercial and institutional DC sewerage works, be funded through the sewer rates and this be confirmed, it being noted that the 'local' sewers in the City's industrial parks are currently funded by the tax base with the expectation that the costs of 'local' sewers be recovered through the sales of the City's industrial lands. 5) Full cost accounting principles for its sewer system be followed irrespective of the timing for the approval of the regulations in support of Bill 175 in recognition of the long term value to the people of London to have a sustainable sewer system. 6) That, consistent with the Corporate Strategic Financial Plan, the sburce of funding will be as follows: a) For life cycle renewal projects funding will move toward pay-as-you-go representing a steady increase from $1.8 million to full pay-as-you-go financing over.the next 20 years. This financial strategy will ensure debt servicing costs are contained to acceptable financial standards, it being noted that the debt to revenue ratio in the Wastewater Budget has escalated from 12.5% in 1999 to 20.3% in 2006 as a result of utilizing debentures as a source of funding for previously approved life cycle maintenance works; and b) For growth and system improvement capital works funding will include strategic financial contribution increases to the Sewage Works and ndustrial Oversizing Reserve Funds in order to mitigate one time wastewater rate pressure or increased reliance on debt financing, it being further noted that the Sewer system has a replacement value of $2.7 billion. 7) A stabilization reserve fund of 2.5% of revenue be endorsed, it being noted that this fund will be built up over the next three to five years, or longer if deficits occur, in order to balance out the variation in revenues due to year over year fluctuations in flows. 7

2 Bill No. By-law No. WM-24 A by-law to establish the Schedule of Sewer System Fees and Charges. WHEREAS the Council of The Corporation of the City of London passed By-law No. W on June 4, 1984, being a by-law to regulate the charges to property owners who connect their properties to the sewer works of the City of London; AND WHEREAS the Council of The Corporation of the City of London passed By-law No. WM-2 on November 15, 1993, being a by-law for the regulation of the discharge of wastes into the public sewage works and to provide for sewage service rates; AND WHEREAS the Council of The Corporation of the City of London passed By-law No. WM-13 on December 18, 2000, being a by-law for imposing a sewer improvement tax; AND WHEREAS the Council of The Corporation of the City of London passed By-law No. WM-22 on December 18, 2006, being a by-law to establish the schedule of sewer system fees and charges; AND WHEREAS under the Municipal Act, 2001, a municipality may pass by-laws imposing fees or charges on any person for services or activities provided or done by or on behalf of it; THEREFORE the Municipal Council of The Corporation of the City of London enacts as follows: 1. The Schedule of Sewer System Fees and Charges listed on Schedule 1 of this by-law are approved and imposed commencing March 1,, as follows: a) The Sanitary Sewer Charge under the Sewer System Charge By-law, listed in Column 3 of Table 1, b) The Storm Drainage Charge under the Sewer System Charge By-law, listed in Column 4 and Column 5 of Table 2; c) The Sewer Rental Charges under the Sewer Rental By-law, listed in Table 3; d) Hauled Liquid Waste Disposal charges under the Waste Discharge By-law, listed in Table 4; e) Private Drain Connection under the Drainage By-law, listed in Table 5; and f) High Strength Sewage Service Rates, under the Waste Discharge Bylaw, listed in Table 6. 2 The fees and charges imposed by this by-law are due and payable: (a) at the time of the transaction for which the fee or charge is imposed; or (b) if subsection 2(a) is not applicable, upon the due date specified in any invoice issued by The Corporation of the City of London or by London Hydro nc. to any person or party in connection with a fee or charge imposed by this by-law.

3 3. Fees and charges imposed under this by-law on a person constitute a debt of the person to the City. Fees and charges for the use of a sewage system imposed under Part X1 of the Municipal Act, have priority lien status. Where there is statutory authority to do so, the City Treasurer may add fees and charges imposed by this by-law to the tax roll for the property in the same manner as municipal taxes. 4. The short title of this by-law shall be the "Schedule of Sewer System Fees and Charges By-law". 5. By-law WM-22 which was passed by Municipal Council on December 18, 2006 and came into force and effect on January 1, is hereby repealed effective March 1,. 6. This by-law shall come into force and effect on March 1, PASSED in Open Council January 22,. Anne Marie DeCicco-Best Mayor Kevin Bain City Clerk First Reading -January 22, Second Reading - January 22, Third Reading -January 22,

4 ~~ ~~ 3 2 Schedule 1 Schedule of Sewer System Fees and Charges TL Line 1 Column 1 Sewer System Charge (based on water consumption) Residential Column revised Sanitary Sewer Charge (5 perm ) Line 2 Commercial Column 3 Sanitary Sewer Charge (5 per m ) Line 3 Line 4 Line 5 Line 6 Line 7 nstitutional nstitutional over 600,000 m ndustrial ndustrial over 600,000 and under 1.2 million m3 ndustrial over 1.2 million m T. LE 2 - Sewer System Charge - Column Sewer System Charge (based on water consumption) orm Draini Column Storm Drainage Charge ($/Month) e Charge Column Storm Drainage Charge (Annual $ per hectare) Storm Storm Drainage Drainage Charge Charge (Annual 5 Line Line 2 Line 3 Line 4 Residential Commercial nstitutional nstitutional over 600,000 m Line 5 ndustrial Line 6 ndustrial over 600,000 and Jnder 1.2 million m Line 7 industrial over 1.2 million m Line Sewer Rentals (5 per m frontage) Sanitary Main Sewers Line 2 Storm Main Sewers - Single Family Line 3 Storm Main Sewers - Multi Family

5 Hauled Liquid Waste Disposal nside Municipal Boundaries Outside Municipal Boundaries ($ per 1,000 litres) TABLE 5 - Rate Effective on and after March 1, Private Drain Connection New pdc - construction of sewer - sanitary (i) the installation of a new sanitary sewer private drain connection in conjunction with a City construction project that involves the construction of a sanitary sewer main; New Ddc - construction of sewer - storm fii) the installation of a new storm sewer Drivate drain cdnnection in conjunction with a City construction project that involves the construction of a storm sewer main; Existinq pdc extension -construction of sewer - sanitary (iii) the extension of an existing sanitary sewer private drain connection to the property line in conjunction with a City construction project that involves the construction of sanitary sewer main; Existinq pdc extension -construction of sewer - storm (iv) the extension of an existing storm sewer private drain connection to the property line in conjunction with a City construction project that involves the construction of a storm sewer main Repair or replace existina pdc - excavation (v) the repair or replacement of an existing private drain connection in conjunction with a City construction project with excavation below the road structure where the private drain connection is within the excavated area, but that does not involve construction of a sewer main; Repair or replace existinq pdo no construction (vi) the repair or replacement of an existing private drain connection in which (i) through (v) do not apply ($1 5,775 5,775 2,000 2,000 2,750 5,775 High Strength Sewage Service Rate $ per m3 Methods of Payment The fees, charges and penalties imposed by this by-law can be paid as follows: (a) under Tables 1 and 2 (lines 1,2,3 and 4), to London Hydro by cheque, preauthorized payment or through a financial institution. (b) under Tables 2 (lines 5,6 and 7), 3, 4, 5 and 6, to the City of London by cash, cheque or debit (where available)

6 A- Bill No. By-law No. A,-- A by-law to establish the Sewage Treatment Plant Capacity Reserve Fund. WHEREAS Section 10 of the Municipal Act, 2001, as amended, provides that a municipality may establish a reserve fund for any purpose for which it has authority to spend money; AND WHEREAS it has been deemed expedient to establish a reserve fund to provide a funding source for the Sewage Treatment Plant Capacity. NOW THEREFORE the Municipal Council of The Corporation of the City of London enacts as follows: 1. A reserve fund is hereby established to be known as the "Sewage Treatment Plant Capacity Reserve Fund" (hereinafter called the "Fund). 2. The monies standing in the Fund shall be used by The Corporation of the City of London to provide funding for the Sewage Treatment Plant Capacity in order to reduce or eliminate the need for the more costly option of issuing debenture financing, consistent with the Corporate Strategic Financial Plan adopted by Council. The balance of the fund accumulated by the date where funding is required for construction costs, not otherwise supported by the City Services Reserve Fund, will be used in lieu of debt financing and thereafter the fund will be closed. 3. Before any monies are expended from the Fund for the purposes outlined in section 2 of this by-law, the approval of the Municipal Council shall be given to the allocation of such monies from the Fund in a given year. 4. Any subsequent monies collected through the annual sewer system fees and charges to be used as a contribution to the Fund shall be deposited to the Fund by the City Treasurer. 5. The City Treasurer may deposit the monies standing in the Fund into a special bank account or into a consolidated bank account into which are deposited the monies raised for other reserve funds, and the earnings derived from the monies so deposited shall accrue to and form part of the Fund. 6. Notwithstanding that provision may not be made by the Council in the estimates of the current or any subsequent year for contributions to the Fund, it shall continue and be maintained, and the Council shall always be taken as considering the Fund as necessary so long as this by-law continues in force. 7. This by-law comes into force on the day it is passed PASSED in Open Council on January 22, Anne Marie DeCicco-Best Mayor Kevin Bain City Clerk First Reading -January 22, Second Reading - January 22, Third Reading - January 22,