Item - 2023.EX10.4

The Executive Committee recommends that:  

1. City Council adopt:

a. effective January 1, 2024, an interim 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 below and in Appendix B to the report (November 17, 2023) from the Chief Financial Officer and Treasurer and the General Manager, Toronto Water;

b. effective January 1, 2024, an interim 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 (November 17, 2023) from the Chief Financial Officer and Treasurer and the General Manager, Toronto Water; and

c. effective January 1, 2024, the water and wastewater interim service fees, as set out in Appendix C to the report (November 17, 2023) 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, 2024, the interim water rebate for eligible low-income seniors and low-income disabled persons be set at a rate of $1.3553 per cubic metre, representing a 30 percent reduction from the Block 1 rate (paid on or before the due date).

3. City Council amend 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 City Council's decision and City Council 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.

This report recommends the adoption by City Council of 2024 interim water and wastewater consumption rates and service fees as set out in this report. The adoption of these interim rates and fees is requested in advance of the 2024 Tax and Rate Supported Operating and Capital Budgets in order to establish these rates and fees and provide City staff with the necessary authority to implement the interim new rates and service fees effective January 1, 2024, consistent with financial modeling and the rate increase requirements presented during the 2023 Budget Process. These interim rates may be amended by City Council when the 2024 Rate supported Operating and Capital Budgets are approved, which is expected in Q1 of 2024.

The 2023 Water and Wastewater Consumption Rates and Service Fees, approved by City Council, concurrently with the 2023 Operating Budget and 2023-2032 Capital Budget and Plan ("10 Year Plan"), were based on a 10 year financial model predicated on a 3% annual increase in water and wastewater consumption rates, and an annual inflationary increase in water and wastewater service fees, for each year of the 10 Year Plan commencing in 2023 and ending in 2032.

Accordingly, this report recommends, effective January 1, 2024, an interim 3% water and wastewater consumption rate increase and inflationary and cost recovery increases for certain existing water and wastewater service fees, reflecting the cost of providing these services.

The report also provides additional information on water consumption, as well as further details on recommended interim 2024 water and wastewater consumption rates and service fees.