Title
2022 Utility Rates with the Inclusion of the Hamlet of Wabamun
Proposed Motion
That Committee of the Whole receive the report on harmonizing Utility Rates with the inclusion of the Hamlet of Wabamun for information.
Body
Administration supports the proposed motion.
Purpose:
This report provides information on harmonizing the Hamlet of Wabamun water and wastewater Utility Rates into Parkland County Utility Rates.
Background:
Previous Council Actions
At the June 22, 2021 Parkland County Council Meeting on Bylaw 2021-20 - 2022 Fees and Charges, Parkland County Council approved 2022 rate increases for Parkland County water and wastewater systems. Administration was to bring forward information in the fall of 2021, on water and wastewater utility rates with the inclusion of the Hamlet of Wabamun’s water and wastewater systems.
Harmonizing the Village of Wabamun and Parkland County Utility Rates
With the dissolution of the Village of Wabamun at the end of 2020, Parkland County assumed responsibility for the Hamlet of Wabamun’s water and wastewater operations.
In 2021, analysis was performed on harmonizing Wabamun Utility Rates with Parkland County Utility Rates, with the acknowledgement that Wabamun Utility Rates are more expensive than Parkland County Utility Rates. Harmonizing the Wabamun utility rates would result in increased water rates for all Parkland County residential customers. To avoid an immediate increase to the utility rate Administration is proposing to utilize the Utility Restricted Surplus to transition the harmonization (increase) over a period of 10 years. This will result in the Wabamun utility rates decreasing to match the existing Parkland County utility rates.
Utilizing the restricted surplus will create a revenue shortfall that will be recaptured over the life cycle of the infrastructure and will not affect the operations and scheduled maintenance of our water and wastewater systems, nor will not affect our planned infrastructure replacements over the transition period.
Summary:
The Village of Wabamun Utility Rates and Parkland County Utility Rates will be harmonized in 2022, using the Utility Restricted Surplus to fund the revenue shortfall. Parkland County Utility Rates will not be immediately impacted by the harmonization, Wabamun Utility Rates will decrease and planned infrastructure replacements will not be impacted over the 10 year period.
Strategic Plan:
Harmonizing water and wastewater Utility Rates aligns with Parkland County’s long term strategic pillars of: Complete Communities - investing in, owning, and maintaining infrastructure that supports quality of life and business viability; and Responsible Leadership - budgeting and planning according to priorities that add value to the community.
Financial and Other Impacts:
Parkland County Utility Rates will not be impacted by the harmonization and Wabamun Utility Rates will decrease. The Utility Restricted Surplus will remain in good financial health, with the ability to fund planned infrastructure replacements over the 10 year period.