Waterworks Rate Policy

Coin operated water refilling station rate $17.00 per 1,000 gallons.

Under the waterworks rate policy resolution, the per unit (1000 gallons) water rate of $15.00 per month with a minimum of $22.50 for 1500 or less gallons will be charged, as adopted under the water Bylaw No. 2007-09. Council will be shortly considering an increase to water rates as they are wanting to provide for a service that is self supporting, they will also take into consideration an inevitable SaskWater increase.

An example of a comparison of current rates on households that would use both minimum amounts and excess of minimum amounts:

Current Rate
Minimum (1000 gallons) $22.50 per month
Excess (5000 gallons) $75.00 per month
Coin Operated Refilling Station $17.00/1000 gallons

The current water rate Bylaw was submitted to the SMB and had received Approval.

The current rate the municipality is charged per unit for water is $12.69 plus GST (an increase of $.45 per unit effective May 1, 2007 was added to old rate of $12.24). It is estimated that in addition to the cost of purchasing water the municipality experiences a 24% additional cost for related expenses for distributing this service such as: wages, testing, power, heat, office supplies, material, and chemicals.

In 2009 the revenue from water sales worked out to cover 87% of the cost of purchasing water and related expenses. The municipality would like to work towards a service that is more self sufficient where the user pays a larger percentage of cost for service and less of a strain on the taxpayer to cover the remaining costs. This would also achieve a goal of putting money into a utility reserve for future repairs, upgrades and developments of both water and sewer projects. Off-site infrastructure fees charged on newly developed lots would also be transferred into a utility reserve to be used in part for future development.

As a result of the increase to the municipality from SaskWater, effective May 1, 2007, Council made an application to the SMB to increase water rates as of January 1, 2008.

Town of Hague
Waterworks Capital Investment Strategy
February 23, 2010

On February 23, 2010 Council passed a resolution on a capital investment strategy.

The objective of the waterworks capital investment strategy is to address anticipated waterworks infrastructure maintenance, the immediate drinking water infrastructure problems and future infrastructure replacements in a timely fashion so as to ensure the municipal waterworks provides safe drinking water to residents and businesses. The strategy uses the waterworks system assessment that was required by Saskatchewan Environment for infrastructure planning.

To cover the costs of future waterworks infrastructure maintenance and replacements, Council will likely need to undertake in the future a combination of increasing water rates to build the waterworks reserves, general revenue, long term borrowing and applications for all available grants.

The capital investment strategy will ensure that safe drinking water can be provided to the residents and businesses in the community in the present and future.

Capital plans have been established to address the waterworks infrastructure deficiencies and replacements as identified and prioritized in the water assessment to ensure safe drinking water. The current waterworks capital plans are indicated according to the water assessment completed in 2004 as attached and planned sources of funding are as indicated above: reserves, general revenue, long-term borrowing and any available grant money.

In 2009 Council had water and sewer services installed in phase 3 of the newest subdivision being 10 lots. The cost of this development will be paid through long-term borrowing and recovered through the price of each lot sold. As this phase becomes full, Council will instigate the development of a future subdivision.

For future waterworks capital plans, projects will be prioritized based on what is needed to ensure safe drinking water.

Annual Financial Overview

Total 2009 waterworks revenues: $230,020.54

Total 2009 waterworks expenditures: $264,165.87

Total debt payments on waterworks infrastructure loans: $72,000.00

Comparison of waterworks revenues to expenditures plus debt payments, expressed as a ratio: 230,020.54 = .68 or 68%
264,165.87 + 72,000

For 2009, waterworks revenues covered 68 percent of the waterworks expenditures.

Amount of 2009 waterworks revenues transferred out of the utility, Zero.

Amount of 2009 supplementary funding to cover expenditures: $106,145.33 from the general revenue fund.

Reserves

Reserves available for waterworks capital infrastructure: $109,000.

Attachments

* Attached is the 2004 waterworks system assessment, as required under section 35 of The Water Regulations, 2002.

* Attached is a waterworks service agreement with SaskWater and the notification of rate increase as of May 1, 2007.