Water and Wastewater Rate Study

January 15, 2020
Category: 
Public Works
Water Rates

The Town of Collingwood is undergoing a review of its water and wastewater user rates. The purpose is to evaluate and gather the appropriate data to provide an updated rate structure that will support the needs of the community. Water and wastewater are self-funded utilities, meaning that they are non-tax supported operations. While it seems freshwater is plentiful in our municipality, we still must be financially and environmentally responsible water users and not take our freshwater asset (The Georgian Bay) for granted.

Our goal of this study is to assess opportunities in our current rate structure to better serve our residents and our growing population, with these key items being considered:

  • Fair costs across customer groups including residential, commercial and industrial
  • Financial sustainability- the costs of the system fully support the needs of the system
  • Water conservation incentives for residents
  • Maintaining and replacing current infrastructure

The key points below provides some general background facts regarding the current status of the Town’s water and wastewater system:

  • Nearly 75% of total rate revenue is generated from the fixed charge
  • Ensures revenue security and stable cash flow, although, the high ratio limits what the end-user can save from water conservation efforts.
  • Strong fiscal standing to start 2019 in regards to water and wastewater reserves
  • Advancement of the asset management program and developed a 10-year capital plan

Discover more about the Rate Structure Review, Proposed Adjustments, and provide your feedback on Engage Collingwood.