The Town of Grimsby has recently completed a study to review costs and financing alternatives associated with managing the Town’s water distribution system. Results of the study are documented in the ‘Town of Grimsby Water Full Cost Assessment and Recovery (Part I and II), March 2010’ report.
The full cost assessment and recovery report was developed in accordance with the ‘Financial Plans’ regulation (O.Reg.453/07) to meet one of the conditions the Ministry of Environment’s (MOE) Municipal Drinking Water Licensing (MDWL) program. As a condition of the MDWL program, the Town of Grimsby is required to submit the plan to the provincial government, prior to July 1, 2010.
The full cost assessment and recovery report assesses:
- The total costs (present and future) associated with providing municipal drinking water supply trough the Grimsby Water Distribution System, including:
- Operating costs (i.e. costs for operating the Town water system and costs associated with treated water supplied by the Region of Niagara);
- Maintenance costs (i.e. annual maintenance costs for upkeep of the system);
- Capital replacement costs through a lifecycle analysis of long term pipe replacement needs.
- Financial options for maintaining a financially sustainable water system, including:
- Review of various alternatives for water rate structures;
- Recommended water rate structure for the Town of Grimsby.
The full cost assessment and recovery report recommends that:
The Town’s existing Capital and Five-Year Forecast Expenditure Program to replace aging cast iron watermain, continues with a slight increase to the annual Water Capital Contribution.
The Town’s current method of water billing continues as it was determined to be the best overall option evaluated through this study.
The Fixed Revenue (Flat Rate) component of water billing is increased annually over the next five years from 42% towards 70% and the Metered Rate is lowered to offset the Flat Rate increase.
The full cost assessment and recovery report was provided to the Town of Grimsby’s Public Works Committee on April 14, 2010 (refer to Report # DPW10-15) and subsequently approved by Town Council on April 19, 2010 by Resolution #C-10-71. The report was submitted to the Ministry of Municipal Affairs and Housing in June, 2010 to meet the Financial Plan requirement of the MOE’s MDWL program.
A copy of the Town of Grimsby Water Full Cost Assessment and Recovery (Part I and II) is available for public viewing at Town of Grimsby Town Hall (160 Livingston Avenue). A digital copy can be viewed by clicking here .