To comply with new standards and to ensure a self-sustaining system in the future, Orangeville’s water and

wastewater (sewer) rates will increase next year. Orangeville Council has passed a bylaw to establish the water and wastewater rates for 2006 in an attempt to move towards full cost pricing as mandated by the province.

Orangeville Council had previously opted to phase in the cost increases over several years to minimize the impact on consumers. The adjustment for 2006 follows the update of a rate study by C.N. Watson and Associates Ltd. that shows forecast expenditures for water (up to the year 2012) have increased from $35 million in the 2004 study to approximately $41 million (due to increases in well upgrades, the Transmetro well connection, and the County Road 16 watermain). On the wastewater side, forecast expenditures have decreased from $23 million in the 2004 study to approximately $20 million.

The water charge in Orangeville will increase to 87 cents per cubic metre in 2006, from the current 74 cents per cubic metre. For the average household, using 250 cubic metres of water annually, that will mean a water bill of $280 (compared to $246 in 2004).

The wastewater charge will increase from 76 cents per cubic metre to 88 cents per cubic metre. For the average household, using 250 cubic metres of water annually, that will translate into a bill of $290 in 2006, compared to $251 in 2004.

The adjustments in cost still see Orangeville paying far less than many municipalities. In 2005, the average resident in Erin paid $516 for water and residents on water systems in East Garafraxa paid $1,420. The average wastewater user bill in Guelph was $316 in 2005 and $711 in Shelburne. Next door, in the Town of Mono, the water rate per cubic metre is rising to $1.95 in 2006, compared to Orangeville’s rate of 87 cents.

The study update outlines an indexing of rate increases up to 2012 at which time it’s anticipated the water rate for the average consumer would be $1.47 per cubic metre and the wastewater rate would be $1.63 per cubic metre. That is based on consumption under 50 cubic metres per month for units with a one-inch meter. After that level, the rate per cubic metre is higher, but most residential consumption is far below that limit.

The study outlines the operating and capital costs of the system and provides for lifecycle contributions, with the costs being more expensive for wastewater than water. The full cost of operating the water and wastewater services will continue to be paid from the rates that are charged, consistent with the Sustainable Water and Sewage Systems Act.

The Act requires municipalities to prepare a “full cost of service” report which includes an infrastructure management plan, and a “cost recovery plan” report. For Orangeville, costs include the upgrades to wells, the replacement of watermains and sewers and the upgrading and retrofitting of pieces of equipment, and the installation of a de-watering facility for the biosolids at the water pollution control plant.

Orangeville Hydro has been granted a three percent increase in their charge for reading the water meters and billing the customers the water and wastewater charges.