Item - 2024.EX19.9

The Executive Committee recommends that:

1. City Council adopt:

a. effective January 1, 2025, an interim 3.75 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 A to the report (November 26, 2024) from the Chief Financial Officer and Treasurer, and the General Manager, Toronto Water;

b. effective January 1, 2025, an interim increase of 3.75 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 A to the report (November 26, 2024) from the Chief Financial Officer and Treasurer, and the General Manager, Toronto Water; and

c. effective January 1, 2025, the water and wastewater interim service fees, as set out in Appendix B to the report (November 26, 2024) 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, 2025, the interim water rebate for eligible low-income seniors and low-income disabled persons be set at a rate of $1.4062 per cubic metre, representing a 30 percent reduction from the Block 1 rate (paid on or before the due date).

3. With regards to the City’s transition from the Ministry of the Environment, Conservation and Parks Transfer of Review Program to the Ministry of the Environment, Conservation and Parks’ new Consolidated Linear Infrastructure Environmental Compliance Approval application process for municipal wastewater collection and stormwater management systems (collectively, the “CLI ECAs”), City Council:

a. adopt effective on the Issue Date for CLI ECA Number: 010-W601, being the Consolidated Linear Infrastructure Environmental Compliance Approval for the City's Sanitary Sewage Collection System and for CLI ECA Number: 010-S701, being the Consolidated Linear Infrastructure Environmental Compliance Approval for the City's Stormwater Management System, Chapter 441, Fees and Charges, Appendix D, Schedule 3, Wastewater Services be amended to include the proposed new wastewater service fees for the Consolidated Linear Infrastructure Environmental Compliance Approvals as set out in Appendix C attached to the report (November 26, 2024) from the Chief Financial Officer and Treasurer, and the General Manager, Toronto Water, which shall be adjusted annually for inflation (“CLI ECA Fees”);

b. adopt effective on such date as mutually agreed to by the Ministry of the Environment, Conservation and Parks and the General Manager, Toronto Water, Chapter 441, Fees and Charges, Appendix D, Schedule 3, Wastewater Services be amended to delete in their entirety items 21, 22 and 23, related to the City’s fees under the Transfer of Review Program, as set out in Appendix B to the report (November 26, 2024) from the Chief Financial Officer and Treasurer, and the General Manager, Toronto Water;

c. authorize the General Manager, Toronto Water to refund any Consolidated Linear Infrastructure Environmental Compliance Approval Fee in full, subject to the following conditions:

i. an application under the Consolidated Linear Infrastructure Environmental Compliance Approval is cancelled or withdrawn by an applicant in writing to the City within five business days of the date of receipt of the application by the City;

ii. the fee was paid by the applicant and received by the City; and

iii. a refund request is made by the applicant in writing; and

d. authorize the General Manager, Toronto Water to negotiate, enter into and execute a mutual termination agreement with the Ministry of the Environment, Conservation and Parks, or such other document(s) as may be required, to terminate the City’s participation in the Transfer of Review Program and, specifically, to terminate the City’s agreement with the Province, as represented by the Ministry of the Environment, Conservation and Parks, dated October 3, 2018, and to address any issues related to the City’s transition from the Transfer of Review Program to the Consolidated Linear Infrastructure Environmental Compliance Approvals, on such terms and conditions as are acceptable to the General Manager, Toronto Water, and in a form acceptable to the City Solicitor.

4. City Council authorize that the necessary amendments be made 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.

5. 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 2025 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 2025 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 them effective January 1, 2025. The recommended interim rates are established to meet Toronto Water operating and budget requirements which will be considered through the 2025 Operating and Capital Budget process ("2025 Budget Process"). These rates may be amended by City Council when the 2025 Rate supported Operating and Capital Budgets are adopted, which is expected in the first quarter of 2025.

Accordingly, this report recommends, effective January 1, 2025, an interim 3.75 percent 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.

This report also recommends the establishment of proposed new fees to recover the City's costs related to the administration and review of applications in respect of pre-authorized wastewater and stormwater infrastructure alterations under the Ministry of the Environment, Conservation and Parks ("MECP") new Consolidated Linear Infrastructure Environmental Compliance Approval application process for municipal wastewater collection and stormwater management systems (“CLI ECAs”).  It is further recommended that these new fees be effective on the issue date by the MECP of the CLI ECAs to the City (anticipated later in 2025), and that the City’s current TOR Program fees be deleted effective on such date as mutually agreed to by the MECP and the General Manager, Toronto Water as part of the City’s transition from the TOR Program to the CLI ECAs. 

This report also provides additional information on water consumption, as well as further details on the recommended interim 2025 water and wastewater consumption rates and service fees.