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Date: Dec 17, 2019
For Immediate Release,
December 17, 2019
Council of the Town of Erin approved the 2020 Water Rate By-law at the December 17th, 2019 Regular Council Meeting. The Adoption of the new Water Rate By-law will decrease the average annual residential bill by seven percent (7%) in 2020, with a ten percent (10%) decrease to volume rates in 2020 and a three percent (3%) annual increase to the base charge. The average customer will receive an average annual savings of $68.56. The by-law outlines the new water rates, which comes into effect January 1st, 2020.
Council's decision was made following a 2019 Water Rate Study, presented by Watson and Associates Economists Ltd. (Watson). The Water Rate Study provided Council with an updated analysis of the Town's current capital and operating forecasts, as well as providing Council with three growth scenarios that the Town could potentially experience over the years 2020 to 2029. Upon receiving a presentation from Watson, and reviewing the options, Council made the decision to decrease the average annual residential bill by 7%.
Average Annual Water Residential Bill (Based on 190m3 Annual Volumes)
| Description | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|
| Monthly Base Rate | $15.39 | $15.85 | $16.33 | $16.82 | $17.32 | $17.84 |
| Constant Rate | $3.99 | $3.60 | $3.71 | $3.82 | $3.93 | $4.05 |
| Total Annual Bill | $942.78 | $874.22 |
$900.83 |
$927.60 | $954.56 | $983.59 |
| %Increase-Base Rate | 3% | 3% |
3% |
3% | 3% | 3% |
| %Increase-Volume Rate | -10% | 3% |
3% |
3% | 3% | 3% |
| %Increase-Total Annual Bill | -7% | 3% |
3% |
3% | 3% | 3% |
The age of the Town of Erin water system dates back to the mid 1950's and will require necessary upgrades to the water treatment facilities; water mains; and water machinery and equipment. The 2019 Water Rate Study also identified $38m in water capital infrastructure that will need to be replaces by existing customers. The new water rates will go towards supporting a financially sustainable water system, which will continue to fund existing infrastructure.
"The Town's Water Rates are conservatively set in comparison to our neighbouring municipalities and will continue to build up the Town's water reserves, while providing with cost-savings," said Mayor Alls.
Contact Us:
Communications & Special Projects Officer: Jessica Spina
519.855.4407 EXT. 239
Communications@erin.ca