The town will be likely be tapping its residents for more cash on their water bills over the next decade.
During their committee of the whole meeting on Oct. 7, Collingwood councillors got a look at the new water and wastewater rates, and as of now, councillors are considering a 5.5 per cent increase to water rates annually over the next 10 years, and a 3.5 per cent annual increase to wastewater charges over the same time period, starting in 2025.
According to the report, the need for the increase is to ensure full cost recovery for operations, maintain the town’s current reserve funds, fund capital projects, and for water infrastructure rehabilitation.
“We have to pass it. It’s a 10-year plan. I understand the need to get it passed soon because we have other things to come in 2025,” said Deputy Mayor Tim Fryer during the meeting. “I am concerned about the overall increase.”
According to Hemson’s report, annual rate increases when combined for water and wastewater for households consuming 200 cubic metres annually would be approximately 4.3 per cent per year, for a total bill of $1,133 in 2025. By 2029, the same total bill would be about $1,342.
While the new rates are expected to be in effect until 2034, the study recommends a review every three to five years to adjust for growth and cost changes.
The Town of Collingwood provides water services to approximately 12,000 metered connections and wastewater services through an infrastructure network valued at $400 million. This system includes the Raymond A. Barker Water Treatment Plant, storage tanks, reservoirs, booster stations, pipelines, a wastewater treatment facility, and seven pumping stations.
In 2025, water and wastewater user rate revenues are forecasted at $6.1 million and $8.3 million, respectively. By 2034, these figures are projected to increase to $10.9 million for water and $12.9 million for wastewater, reflecting rising costs due to infrastructure rehabilitation and operational demands.
As the town’s water treatment plant expansion is paid for primarily through development charges, the town’s new water rates are not impacted by the expansion.
The town completed the water and wastewater rate study, led by Hemson Consulting starting last year. According to preliminary information presented to council in July, as of Jan. 1, 2024, Collingwood currently has the second lowest water and wastewater rates out of 21 different comparator municipalities across Ontario, with only Wasaga Beach coming in lower.
Ramara and Meaford are listed as the municipalities out of the 21 selections with the highest rates.
Five of the municipalities are listed as having approved at least four per cent increases per year to their rates post-pandemic: Wasaga Beach, New Tecumseth, Penetanguishene, Muskoka and Ramara.
This change, if given final approval, will move Collingwood more to the middle of the pack of the comparators.
At the end of discussion, council voted unanimously in favour of approving the new water and wastewater rates for 2025 only, with each year’s rates planned to come before council formally as part of the annual fees review. Mayor Yvonne Hamlin and Coun. Brandon Houston were absent.
Any decisions made during committee of the whole need to be ratified at the next council meeting before going into effect.
Fryer put forward an amendment asking for a comparison if the town were to increase water rates by 4.5 per cent and wastewater by 2.5 per cent instead and how much reserve funding/debt would be needed if that were the case, which was also passed unanimously and will be presented before council makes their final decision on the rates at their next meeting on Oct. 21.
To access Hemson’s full report, click here.
