PUBLIC MEETING NOVEMBER 9, 2016 LOON LAKE, BC COMMUNITY WATER SERVICE and SOLID WASTE DISPOSAL SERVICE. Thompson-Nicola Regional District

Transcription

1 PUBLIC MEETING NOVEMBER 9, 2016 LOON LAKE, BC COMMUNITY WATER SERVICE and SOLID WASTE DISPOSAL SERVICE

2 PUBLIC MEETING NOVEMBER 9, 2016 LOON LAKE, BC Presentation Outline Introductions History Doug Rae Finances Doug Rae Capital project update Arden Bolton Solid Waste Service Changes Martin Dickson Questions

3 Water Regulatory Authority Drinking Water Protection Act & Regulation Health Regions Interior Health Drinking Water Officers Conditions of Permit for each system

4 Service Area

5 History Loon Lake community water service originally constructed in 1974 Transferred to the TNRD in 2007 Community granted authority to borrow up to $150,000 for capital improvements TNRD also pursued grant funding for same

6 Funding Since 2007 Water Fire Hall Community Hall Gas Tax 25,000 19,960 Gov t Grants 54,167 4,090 Total 99,127 4,090 4,090 And would be even more if include broader regional services or grants currently being pursued

7 Debt Approved by Petition $150,000 Borrowed to date for completed projects Difference remains available for use ~ 18,000 As there is currently a little over $31,000 set aside in capital reserves for the system, we want to tap into these funds to pay off this temporary debt rather than tax for it.

8 Water Operations

9 Rate Structure TNRD Board adopted the Water System Acquisition and Sustainability Strategy New user fee rates and parcel taxes and a different way of budgeting for some costs

10 Rate Structure 2016 Financial Review Is 2010 model working as expected? Can it be improved? Inflation next 5 years

11 FINANCIAL MODEL TYPE EXAMPLES FUNDED BY Direct Costs BC Hydro Testing/Analysis Treatment Routine R&M Licenses/permits Insurance Direct Labour Allocated wages of technical staff, system contractors Indirect Vehicle costs, cell phone, training and certification, office costs User Fees User Fees Parcel Taxes Capital Debt payments Grants/Parcel Taxes/Reserves Management Mgr of Utilities E/A Taxes

12 FINANCIAL CHALLENGES As rolled out , in general rates have not kept up with inflation & increased needs for manpower Technical staff has gone from 3FTE to 5 since 2010 All costs keep going up, from BC Hydro to wage rates to supplies to routine R&M More staff means more support in terms of vehicles, cell phones, training, office, etc. Better tools to anticipate problems, respond earlier

13 FINANCIAL CHALLENGES We need to make sure rates will be sufficient to fund actuals costs to provide the service, both today and in future Have therefore projected revenue requirements for next five years Creates financial sustainability + predictability, reduces uncertainty for you

14 CHANGES Out of this review have come the following recommendations endorsed by TNRD Board: 1) Allocation of labour costs average cost per connection Note: benefits Loon Lake service 2) User fees adjust to projected requirement with cap of $125/month 3) Parcel taxes increase base rate for indirect costs to $15/month ($180 per year)

15 DIRECT LABOUR Average Cost of Labour (TNRD-wide) Expected labour cost util tech staff/ contractors $397,487 Avg. # connections ,291 Avg. rate per connection $ Rate will be indexed for inflation in future years

16 OPERATING BUDGET Cost Category Budget 2016 Forecast 2017 Forecast 2021 Direct $ 14,480 $ 19,090 $ 19,970 Labour 18,197 10,776 11,664 Indirect 6,240 9,360 9,360 Debt Trsf to Reserve Total Operating Costs $39,417 $39,326 $41,094

17 Rate Structure On Rates 2015/ Difference User Fees per Q $210 X 4 $192 X 4 ( 18) X ( 72) Parcel Taxes - Indirect X 1 X 1 X TOTAL $960 $948 ( 12)

18 HOME OWNERS GRANT Reality Check If not already using entire grant, then might not pay full increase in parcel taxes Senior Under 65 Minimum tax $100 $350 Grant $1,045 $770 More tax after $1,145 $1,120 Assessment value = ~$135,000

19 Rate Structure 10% discount on user fees paid by cut-off date remain in effect Off rates remain in effect at 50% on On rate Rates will be indexed for inflation in future, with small annual increases

20 Rates User Fees (Per Q) $192 $195 $198 $201 $204 Parcel Taxes (Annual) $180 $180 $180 $180 $180 Any funds collected in excess of those needed for actual costs stay with this service and will be used to fund future needs

21 Rate Structure OR Could leave rates as is for next five years, and put excess funds (if any) into savings for future needs

22 Future Strategies Water meters Tiered rates based on consumption Required for access to grants Keep base rates down for low / moderate consumption More user control over costs Promotes conservation, extending life of assets

23 CAPITAL PROJECTS Water sourcing UV disinfection

24 Stay Connected Find out the latest news from TNRD Board meetings in The Current. Sign up at tnrd.ca! Like us on Facebook, or follow us on Twitter, to receive the latest news from the TNRD

25 Questions?

26 Cache Creek Landfill Update What is Changing?

27 Cache Creek Landfill

28 Cache Creek Landfill Ceased receiving garbage from Metro Vancouver July 2016 Cease all operations December 31, 2016 Cache Creek Landfill Extension MOE has stated its intent to issue OC Public Consultation Period underway Best guess opening September 2017

29 Cache Creek Residential Drop Off (RDO) TNRD take over operation of RDO - Jan 1, 2017 Accept both commercial and residential waste Implement tipping fees in accordance with TNRD bylaw Same services will be offered Same hours in effect (Winter hours) Wednesday Sunday, 10am 6pm

30 Questions?