Staff Presentation - Sewer User Fee Options
Supporting slides for the presentation on proposed changes to sewer user fees.
Sewer User Fee Options
Committee of the Whole
September 15, 2020
Where are we?
[Diagram: Process flowchart showing the following steps:
- Decision to move CRD costs to user fees (Marked as complete)
- Agreement with CRD (Marked as complete)
- Determine rate structure
- Communicate to users
- Adopt bylaw
- Send bills]
Determine rate structure
| Element | Recommended | Current |
|---|---|---|
| Costs | 100% on volumetric rate | 15% from flat fee, 85% from volumetric rate |
| User classes | Institutional Non-residential Residential |
No user differentiation for volumetric or flat fees |
| Consumption | Full-year for Institutional Annualized winter for Non-residential and Residential |
Winter consumption for all users |
| Volumetric rate | Base for Residential Base for <= 1,000 m³ 110% Base for next 10,000 m³ 125% Base for remainder |
All consumption at a single m³ rate |
| Flat fee | Eliminate | Based on single-family equivalent (SFE) ie: restaurant – per 25 seats = 1.5 SFE |
| Minimum | $100 per account | No minimum |
Rate structure elements
[Diagram: Icons representing the following core elements of the proposed rate structure:
- Costs to be recovered
- User classes
- Consumption base
- Flat versus minimum charge
- Volumetric rate factors]
Costs to be recovered
| Service | Amount |
|---|---|
| View Royal sewer service | $850,000 |
| Capital Regional District sewer service | $1,400,000 |
| Total costs to be recovered | $2,250,000 |
Recommendation: 100% of the costs to be recovered should be recovered by a volumetric rate
User classes
Recommendation: Users should be identified by class
Consumption base
[Diagram: Table comparing the seasonal calculation for consumption base by class]
| Residential / Non-residential | Institutional | |
|---|---|---|
| Winter (Snowflake icon) | 40% | 45% |
| Summer (Sun icon) | 60% | 55% |
Recommendation: Consumption should be based on the full-year for institutional users and on annualized winter water consumption for all others
Flat versus minimum charge
| Flat | Minimum | |
|---|---|---|
| Complexity | Complicated | Simple |
| Verification | Not easily verifiable | Verifiable |
| Mid-year | Mid-year (prorated) | Mid-year (not prorated) |
Recommendation: The current flat fee per SFE should be replaced with a $100 minimum charge per account
Volumetric rate factors
[Chart: Progressive vs Proportional graph showing rate changes over volume tiers.]
[Chart: Detailed 3-tier progressive structure:
- 100% (Base) for the first 1,000 m³
- 110% of Base for the next 10,000 m³
- 125% of Base for the remainder (applicable to Institutional & Non-residential)
- Residential is fixed at the 100% Base rate.]
Recommendation: Volumetric rates should follow a 3-tier progressive structure for non-residential and institutional user classes
Implications
[Diagram: 3x3 assessment matrix showing the impact of the proposed changes based on property Assessment (Low, Avg, High) and water Consumption (Low, Avg, High). Results are indicated by smiling or frowning face icons:
- Low Consumption properties generally see positive or neutral impacts regardless of assessment value.
- High Consumption properties generally see negative impacts regardless of assessment value.]
Data Comparison
2019 (split between taxes/user fees)
| Class | % Total Consumption | % Total Contribution |
|---|---|---|
| Residential | 68% | 72% |
| Non-residential | 14% | 20% |
| Institutional | 18% | 8% |
Current rate structure
| Class | % Total Consumption | % Total Contribution |
|---|---|---|
| Residential | 70% | 70% |
| Non-residential | 13% | 13% |
| Institutional | 17% | 17% |
Recommended rate structure
| Class | % Total Consumption | % Total Contribution |
|---|---|---|
| Residential | 69% | 66% |
| Non-residential | 13% | 13% |
| Institutional | 18% | 21% |
Average bill for residence with 77 m³ winter water consumption: $336
Recommendation
Recommendation: THAT a bylaw be prepared to implement sewer user fees based on water consumption (year-round consumption for institutional users and annualized winter consumption for non-residential and residential users) and a three-tier progressive rate structure for institutional and non-residential users.
| Element | Recommended |
|---|---|
| Costs | 100% on volumetric rate |
| User classes | Institutional Non-residential Residential |
| Consumption | Full-year for Institutional Annualized winter for Non-residential and Residential |
| Volumetric rate | Base for Residential Base for <= 1,000 m³ 110% Base for next 10,000 m³ 125% Base for remainder |
| Flat fee | Eliminate |
| Minimum | $100 per account |
Next steps
[Diagram: Process flowchart highlighting the current stage: "Determine rate structure". Previous steps "Decision to move CRD costs to user fees" and "Agreement with CRD" are marked as complete with checkmarks.]
Questions?
Dawn Christenson, Director of Finance dchristenson@viewroyal.ca