Item - 2021.BU35.2

The Budget Committee recommends that:

Rates and Fees

1. City Council adopt:

a. effective January 1, 2022, a 3 percent rate increase to the combined water and wastewater consumption rates (paid on or before the due date) charged to metered consumers as shown in the table below and in Appendix B to the report (October 21, 2021) from the Chief Financial Officer and Treasurer and the General Manager, Toronto Water:

b. effective January 1, 2022, an increase of 3 percent to the water and wastewater consumption rates (paid on or before the due date) charged to flat rate consumers, as set out in Appendix B to the report (October 21, 2021) from the Chief Financial Officer and Treasurer and the General Manager, Toronto Water;

c. effective January 1, 2022 the water and wastewater service fees, as set out in Appendix C to the report (October 21, 2021) from the Chief Financial Officer and Treasurer and the General Manager, Toronto Water.

2. City Council adopt, with respect to assistance for low-income seniors and low-income disabled persons:

a. effective January 1, 2022, the water rebate for eligible low-income seniors and low-income disabled persons be set at a rate of $1.2776 per cubic metre, representing a 30 percent reduction from the Block 1 rate above (paid on or before the due date).

3. City Council authorize the necessary amendments to Municipal Code Chapter 441 - Fees and Charges, Municipal Code, Chapter 849 - Water and Sewage Services and Utility Bill, and any other necessary Municipal Code Chapters as may be required, to give effect to City Council's decision.

4. City Council authorize the City Solicitor to introduce any necessary Bills required to give effect to Council's decision and authorize the City Solicitor to make any necessary clarifications, refinements, including stylistic, format and organization, minor modifications, technical amendments or by-law amendments as may be identified by the City Solicitor, the Chief Financial Officer and Treasurer and the General Manager, Toronto Water.

Operating and Capital Budgets

5. City Council approve the 2022 Operating Budget for Toronto Water of $471.228 million gross, $1,447.021 million revenue and $975.793 million net for the following services:

6. City Council approve the 2022 staff complement for Toronto Water of 1,883.3 positions comprised of 130 capital position and 1,753.3 operating positions.

7. City Council approve 2022 Capital Budget for Toronto Water with cash flows and future year commitments totaling $8,001.172 million as detailed by project in Appendix 6a to the 2022 Staff Recommended Capital and Operating Budget Notes - Toronto Water.

8. City Council approve the 2023-2031 Capital Plan for Toronto Water totalling $7,081.173  million in project estimates as detailed by project in Appendix 6b to the 2022 Staff Recommended Capital and Operating Budget Notes - Toronto Water.

9. City Council request that all sub-projects with third party financing be approved conditionally, subject to the receipt of such financing in 2022 and if such funding is not forthcoming, their priority and funding be reassessed by City Council relative to other City-financed priorities and needs.

Service Levels

10. City Council approve the 2022 service levels for Toronto Water as outlined in Appendix 1 to the report (November 3, 2021) from the General Manager, Toronto Water titled "Recommended 2022 Service Levels – Toronto Water".

The Budget Committee: 

1. Requested the General Manager, Toronto Water, as part of the report back on the potential for a stormwater management fee requested by City Council for 2023, to also report on the necessary stormwater capacity to address the expected severe stormwater events resulting from climate change, in line with global best practices for modelling and managing stormwater.

This report presents the recommended 2022 water and wastewater consumption rates and service fees arising from the concurrent adoption by City Council of the 2022 Toronto Water Operating and Capital Budgets.

In accordance with the City Council 10 year capital plan approved in 2015, this report recommends a 3% water and wastewater consumption rate increase, effective January 1, 2022, and inflationary fee increases for certain existing water and wastewater service fees, reflecting cost recovery for these services. 

The recommended 2022 water and wastewater consumption rates and service fees will allow the Toronto Water Program to remain fully self-funded and financially stable, with both operating and capital needs being met without excessive year-over-year fluctuations in pricing over the long term.