Title
Water and Wastewater Utility Rate Model
Proposed Motion
That Council direct Administration to incorporate the Hemson Consulting Ltd. harmonized the utility rate structure (Option 1) in the 2017 fees and charges bylaw.
Body
Administration Recommendation
Administration supports the proposed motion.
Purpose
To determine if a harmonized utility rate model should be used to establish utility rates and tariffs for all utilities.
Summary
Parkland County has operated each utility system on an individual (stand-alone) basis. This has has resulted in utility system inequities across the County. To assess these inequities Administration initiated a review of existing rate structures for each system. Hemson Consulting Ltd. was retained and asked to develop a harmonized utility model rate model that could be used to calculate a system wide utility rate annually. Hemson Consulting proposed a utility rate model that encompasses all the utility expenditures associated with infrastructure replacement, operations, maintenance, capital and debt servicing costs.
The benefit of incorporating a harmonized utility rate model includes greater flexibility, long term fiscal benefits and the future sustainability of Parkland County's infrastructure.
Strategic Plan/Policy/Legal/Staff Implications
Strategic Priority 3: Healthy Communities - Parkland County communities create strong supportive cultures through design excellence and proximity to amenities, services and recreational opportunities.
* Strategic Goal 3.5: Residents have access to programs, services and infrastructure that contribute to their well-being and quality of life.
* Support delivery by providing safe drinking water and wastewater collection services.
Financial Impact:
Cost: 2017 Budget
Source of Funding: Utility Rates