Orangeville Council was given the results of a 2010 water and wastewater rate study Monday night that has projected an 8.2 per cent increase from last year’s rates.

In 2010, the recommended wastewater and water rates are to be $1.47 and $1.23 per cubic metre, respectively, compared to $1.35 and $1.13 in 2009.

The base charge, which covers the fixed costs of water treatment, is a combination of both wastewater and water base rates. In 2010, the base rate increases to $11.60 per month, up from $11.04 in 2009.

It also appears Orangeville residents are answering the call to conserve. Average cubic metre water consumption dropped from 270 in 2008 to 231 last year.

Based on these figures, it is projected that the average homeowner in Orangeville using the same amount of water will pay $762.90 this year compared with $705.30 in 2009.

Should the proposed 2010 hike be approved, the total increase would be 27.9 per cent in the last three years.

While this is far more than the current rate of inflation, it needs to be taken into consideration that the province has mandated that municipal water systems be fiscally self-sufficient and not funded through municipal tax dollars.

Much of the reasoning behind these regulations can be traced back to the lethal contamination of Walkerton’s water supply in 2001 and the inquiry that followed. Of the recommendations made to avoid any recurrence of the event that saw seven residents die, one was that municipal water supplies and wastewater treatment systems be self-sustaining enterprises.

This was to ensure qualified people were in charge of the systems and facilities, and also to make sure funds for water and wastewater treatment would not be diverted to more politically attractive projects such as an arts or recreation facility.

Doug Jones, the town’s manager of environmental

and development services,

acknowledges that the rate

increases are high in relation

to, for example, property tax

increases, but maintains

that keeping rate hikes low

would only mean huge

increases in the future. The user-rate cost of the BENEFIT “Orangeville is taking a sustainable approach,”

he said in an interview

Wednesday. “You can

Orangeville

keep the increases low,

519.941.3900 but the money eventually

has to come up

from somewhere.

“Our intent is to eventually get to the point where rates will be more in line with inflation.”

Major capital projects under way in Orangeville are shortterm upgrades and expansion to the water pollution control plant, which are budgeted at $22.7 million. A biosolids handling facility at the plant is budgeted at $7.85 million. short-term upgrades will be offset by $2.4 million in grants and slightly less that $2 million in development charges. There was $5.04 million borrowed earlier to cover part of $14 million in upgrading costs at town wells, however, and that debt will have to be covered through user rates.

The plant expansion will see $10.7 million of its $11.7 million cost covered by development charges. On the other hand, $6.46 million of the biosolids facility cost will be carried by user rates.

A key factor in accomplishing self-sustainability is raising the necessary funds, and an appropriate way to address costs of future infrastructure needs is to implement a lifecycle costing system.

With this system, Orangeville takes into account all costs incurred during the projected life of the town’s water treatment system, including investment costs, operating costs, maintenance costs, and other costs involved in protecting the water source from potential contamination.