This is the exact embedded text of the captured official document.
Snapshot b7973e6e7a11 · verified 2026-10-18 ·
original document ·
archived snapshot ·
unofficial consolidation, the official version is held by the municipal clerk.
Room 400 - 330 Portage Avenue
Winnipeg, MB R3C 0C4
www.pubmanitoba.ca
330, avenue Portage, pièce 400
Winnipeg (Manitoba) Canada R3C 0C4
www.pubmanitoba.ca
Order No. 43/22
TOWN OF LAC DU BONNET
TOWN OF LAC DU BONNET WATER AND WASTEWATER UTILITY
REVISED WATER AND WASTEWATER RATES
April 25, 2022
Revised January 3, 2023
BEFORE: Shawn McCutcheon, Panel Chair
Irene Hamilton, Q.C., Panel Member
Order No. 43/22
April 25, 2022
Page 2 of 29
Table of Contents
1.0
Executive Summary ............................................................................................ 4
2.0
Background ......................................................................................................... 5
Water Supply/Distribution ..................................................................................... 6
Wastewater Collection and Treatment .................................................................. 6
3.0
Board Methodology ............................................................................................. 7
Review Process .................................................................................................... 7
Contingency Allowance and Utility Reserves ........................................................ 7
Working Capital .................................................................................................... 8
Operating Deficits ................................................................................................. 8
Cost Allocation Methodology ................................................................................ 8
Unaccounted for Water ......................................................................................... 8
4.0
Application ........................................................................................................... 9
System Development Charge ............................................................................. 12
Contingency Allowance and Utility Reserves ...................................................... 15
Working Capital .................................................................................................. 16
Operating Deficits ............................................................................................... 16
Cost Allocation Methodology .............................................................................. 16
Unaccounted for Water ....................................................................................... 16
Order No. 43/22
April 25, 2022
Page 3 of 29
5.0
Board Findings .................................................................................................. 17
6.0
IT IS THEREFORE ORDERED THAT: ............................................................... 21
Order No. 43/22
April 25, 2022
Page 4 of 29
1.0
Executive Summary
By this Order, the Manitoba Public Utilities Board (Board or PUB) grants approval of the
Town of Lac du Bonnet (Town) Water and Wastewater Utility's (Utility) application for
revised water and wastewater rates.
The Board grants approval to revise the Town's methodology in charging the Rural
Municipality of Lac du Bonnet (RM) for wastewater customers located in the Tanco
Development (Tanco).
The revised rates are below:
Jul 1, 2022
Jan 1, 2023 Jan 1, 2024
Quarterly Service Charge
20.75
$
21.25
$
21.80
$
Water ($/cubic meter)
2.75
$
2.80
$
2.85
$
Wastewater ($/cubic meter)
1.25
$
1.30
$
1.30
$
Minimum Quarterly Charge*
76.75
$
78.65
$
79.90
$
Bulk Water ($/cubic meter)
4.10
$
4.15
$
4.20
$
*based on 14 cubic meters
Details of other rates can be found in Schedule A.
The reasons for the Board's decisions are under Board Findings.
Order No. 43/22
April 25, 2022
Page 5 of 29
2.0
Background
The Town serves 528 metered water and wastewater customers within Town limits and
10 metered water and wastewater customers outside its boundaries.
The Town provides lagoon service to the Rural Municipality of Lac du Bonnet (RM)
serving 20 members of a water co-operative known as Tanco Crescent Water Coop Ltd.
(Tanco). The RM has historically been billed annually for a single quarterly service charge
for each connection and a charge for lagoon service based on 53 cubic meters of use per
connection, per quarter. The individual residents' water service is not metered.
The Town has a 10" water line that is capped currently and was installed for future
expansion. A minimum bill for a 10" meter was included in the Town's request to review
and vary Board Order No. 7/16, and was approved in Board Order No. 36/16. The Town
advised in its rate study that no 10" meter is installed.
The Town has a 6" water line and a meter pit with a 6" meter installed, located at the
boundary line of the Town and the RM. This installation was to serve several new
customers in the RM. The Town advised in its rate study this expanded use has not yet
materialized.
There has previously been one customer attached to the 6" line. The customer was the
Glen Howard Inn (GHI) and the connection was served by a 1½" line and meter. GHI
closed operations several years ago, however the Town advised the Board in November
2021 that GHI had new owners receiving water and wastewater services.
The Town also serves one fire hydrant served by the 6" line and this hydrant is located in
the RM. The Town pays currently the fire hydrant charge to the Utility, and has requested
approval to bill the RM the approved fire hydrant charge.
The Town also requested approval to bill Manitoba Hydro for a fire hydrant rental, but did
not provide any further information about the location or why Manitoba Hydro is
responsible for the fire hydrant change.
Order No. 43/22
April 25, 2022
Page 6 of 29
Water Supply/Distribution
The Town sources its water from the Winnipeg River. The water treatment plant has
unused capacity and is in good condition.
The Town has replaced 75% of its old cast iron water mains and plans to replace the
remainder at a cost of $1,750,000. The Town intends to pay for half this cost from its fund
surplus and the balance from federal/provincial grants. The Town advises there are no
plans to raise any new debt to be recovered by taxes.
In 2019, the Town spent $1,200,000 for line replacements of which half was funded
through internal funds and the balance from grants. The same year the Town spent
$295,000 replacing meters; 30% of this project was funded by a grant, and the balance
from internal funds.
The Town sells a considerable amount of bulk water and in 2018; it earned $140,039 from
bulk water fees.
The Town is meeting Drinking Water Standards. Operators are all duly certified to operate
the water facility and training is provided as necessary.
An engineering assessment of the water system is required every 5 years unless
extended by Water Stewardship. The Town advised that the last assessment was in 2019.
Wastewater Collection and Treatment
The Town's lagoon is 25 years old and while it was at first believed the lagoon might have
hydraulic capacity issues subsequent investigation and repairs resolved an overloading
issue. A discharge restriction was detected and once repaired the overloading was
resolved. A lagoon capacity assessment is no longer required.
Lagoon discharges are made into the Winnipeg River.
Order No. 43/22
April 25, 2022
Page 7 of 29
The wastewater lines are in reasonable condition and the Town is considering a
wastewater line insertion process to extend the useful life of the lines. The lines are
regularly scoped and flushed. The Town is considering a wastewater line insertion
process to extend the useful life of the lines.
Upgrades have been made to both the lift stations including the installation of back-up
generators.
The Town is compliant with its Environmental License. Prior to the lagoon discharge
repairs, all emergency releases had the necessary approvals.
Operator training is budgeted to the extent required.
3.0
Board Methodology
Review Process
When reviewing an application, the Board has at its disposal two approaches, a paper
review process or a public hearing. After the publication of the Notice of Application, the
Board considers the application and responses, if any, and determines which method of
review is most appropriate. Whenever reasonable, the Board can review the application
using a paper review process, which saves the cost of a public hearing.
Where there is an urgent need for initial or revised rates and the Board determines it to
be in the best interest of all parties, the Board may establish interim ex parte rates.
Contingency Allowance and Utility Reserves
The Board's Water and Wastewater Rate Application Guidelines recommend an annual
contingency allowance equal to 10% of the variable operating costs.
Order No. 43/22
April 25, 2022
Page 8 of 29
Working Capital
Board Order No. 93/09 established utilities should maintain a minimum working capital
surplus, in an amount equal to 20% of annual expenses. The working capital surplus is
the Utility fund balance, excluding any capital-related items plus Utility reserves.
Operating Deficits
By law, Manitoba utilities are not allowed to incur deficits. In the event that a deficit does
occur, the Utility is required by The Municipal Act to obtain Board approval for both the
deficit and recovery methodology. The Board is therefore bound to approve reasonable
rates based on reasonable expense projections.
Cost Allocation Methodology
The Board requires all municipalities to review the costs shared between the general
operations of the municipality and the Utility, and to allocate appropriate and reasonable
costs to the Utility, based on a policy known as a Cost Allocation Methodology. This
policy must be submitted to the Board for approval and cannot be changed without
approval by the Board. The Board's requirements regarding cost allocation
methodologies can be found in Board Order No. 93/09.
Unaccounted for Water
Water losses may be caused by such events as distribution line losses, service leaks,
water used for fire fighting or line flushing, and under-registration of water meters. The
Board Guidelines require utilities to compare the volume of water produced or purchased
against the volume of water sold, to determine the percentage of unaccounted for water.
Unaccounted for water volumes of approximately 10% are considered industry standard.
The Board expects any utility experiencing a greater volume of unaccounted for water to
provide an explanation and plan to address the water losses.
Order No. 43/22
April 25, 2022
Page 9 of 29
4.0
Application
On September 29, 2020 the Board received an electronic copy of the rate study from the
Town prepared by the Town's consultant. The submission referenced By-law No. 14/20,
read for the first time January 8, 2020; however a copy of the by-law was not included.
The Town had previously submitted By-law No. 14/20 with an earlier rate application, but
the proposed rates in the September 2020 rate study and By-law No. 14/20 did not match.
On October 13, 2020, the Board contacted the Town to request an amended By-law No.
14/20 supporting the proposed rates identified in the rate study. The Board asked that
the Town provide a copy in Word and a certified copy of the amended by-law. A revised
copy was received October 15, 2020 in PDF format, followed the next day by a version in
Word.
The Town did not advise there were any changes between the PDF and Word versions,
and the discrepancies between these two versions were not detected until April 2022.
The discrepancy is in the wording used in Clause 3.0 iii and iv, which are new additions
to the Utility's by-law and involve the "Capital Charge" for new connections. Further
details on this are found below.
A third version was submitted November 9, 2020, with a note advising the Board of the
proposed change to By-law 14/20, which would amend Clause 4.0 to include a provision
to bill Manitoba Hydro for one (1) hydrant rental. No additional information was provided
regarding this hydrant or why the Town was requesting to bill Manitoba Hydro the annual
rental charge.
All three versions of the By-law had received first reading January 8, 2020, and had not
yet received second reading.
Order No. 43/22
April 25, 2022
Page 10 of 29
The Town's application included a request to revise the method in which the RM is billed
for Tanco wastewater connections. The rate study provided the following information
regarding the billing arrangement between the Town and the RM:
"The Rural Municipality of Lac du Bonnet shall pay, to cover service provided to
residences on the properties in the Tanco subdivision:
i) The Utility rates that are set.
ii) Any additional surcharge sufficient to cover all taxes for the sewage lagoon which it
would be required to pay if such residences were in Town."
The Town's application states it believes the estimated quarterly usage of 53m3 is low.
While the Town does not supply water to the residents, Tanco residents are receiving a
metered piped water service measured through a single meter. Through a Freedom of
Information request, the Town has obtained these meter readings. It is based on this
information the Town believes the use of the lagoon exceeds 53m3 and has requested
the meter readings be provided to the Town and used to bill the RM in the future.
The Town stated it had previously sought to obtain the meter reading from both the RM
and Tanco, without success. The Board asked the Town how it intended to obtain the
meter readings for future billing purposes, and the Town advised if unable to obtain the
readings from the RM or Tanco, it would continue to request an annual reading from
Manitoba Conservation, and use that reading to bill the RM for services provided to
Tanco.
The Town's By-law No. 14/20 also repeals By-law No. 147/13, which includes interim
rates for 2014, 2015 and 2016 approved in Board Order No. 17/14, approved as final in
Board Order No. 7/16. Board Order No. 7/16 also granted approval of revised rates for
March 1, 2017, 2018 and 2019. The Town requested a review and vary of Board Order
No. 7/16 in February 2016 asking to change the effective dates to January 1 instead of
March 1, to remove the pail fill rate and add rates for 6" and 10" connections, as well as
a request to change the methodology for charging the RM for Tanco connections. All
Order No. 43/22
April 25, 2022
Page 11 of 29
requests were approved, with the exception of the Tanco request, which was denied. The
Board recommended the Town consult with Tanco ratepayers and revise the existing
agreement prior to seeking Board approval.
Board Order No. 36/16 was issued as a result of the Town's request to review and vary
Board Order No. 7/16 and included revised rates for April 1, 2016, January 1, 2017, 2018
and 2019. The Town's 2020 rate study and the Notice of Application approved by the
Town both identified the Utility's current rates as those approved in Board Order No.
36/16.
The Board sent a letter October 15, 2021 with a list of questions stemming from the review
of the Town's rate application, including a request for a copy of any current or amending
by-laws in use by the Town. On November 17, 2021 the Town sent a copy of By-law
147/13, which did not include the current rates identified in the Town's rate study and the
Notice of Application. The Board sent a follow up inquiry in April 2022, and was advised
by the Town that the only By-law in use is 147-13, and further, "There was never a Rate
Study or By-Law done for 2016-2019 as the new rates for 2016-2019 were determined
by PUB without the Town of Lac du Bonnet's request or input that we know of."
It is unclear if the Town is charging the rates approved in Board Order No. 36/16 to be
implemented January 1, 2019 without a by-law, or if the Town is charging the rates set
out in By-law 147/13, which are not the rates approved by the Board.
Order No. 43/22
April 25, 2022
Page 12 of 29
Schedule A to By-law No. 14/20 also included revisions to other fees charged and terms
and conditions of service. These changes were consistent among the three versions of
the by-law submitted by the Town. The changes to fees (except Clauses 3.0 iii and iv,
which are reviewed below) were as follows:
Clause
Description
By-law
14/20
By-law
147/13
3.0 vii) Fee for water "turn on" or "turn off"
50.00
$
-
$
3.0 ix)
Service charge before water is turned on
50.00
$
25.00
$
4.0
Annual fire hydrant charge
200.00
$
106.00
$
8.0 iv)
Fees for the disconnection, removal or reconnection of water meter
50.00
$
25.00
$
8.0 v)
Tampering with meter seal, meter reinstatement fee
50.00
$
25.00
$
11.0 ii) Failure to arrange and provide access to meter
100.00
$
50.00
$
Revisions to terms and conditions were:
1. Clause 2.0, which sets out Minimum Quarterly Charges, eliminated the clauses
for Water Only Customers and Sewer Only Customers.
2. Clause 3.0 vii, which revised the process for billing a consumer applying for a turn
on or turn off service during the quarter from a proportionate billing to billing the
full amount of the minimum quarterly charge.
3. Clause 8.0 iii, which amended the adjustment period from four months to three.
System Development Charge
By-law No. 14/20 included the addition of a Capital Charge. These charges are found in
Clause 3.0 iii and iv of By-law No. 14/20, and are the same amount as the System
Development Charges for out-of-boundary connections approved by the Board in Board
Order No. 62/17.
It is unclear if the Town is charging the SDC approved in Board Order No. 62/17 to be
implemented January 1, 2016 without a by-law, if the Town is not charging an SDC or if
no new out-of-boundary connections have been made since January 1, 2016.
Order No. 43/22
April 25, 2022
Page 13 of 29
The versions of By-law No. 14/20 received October 16 and November 9, 2020 proposed
the following for Clause 3.0:
iii) Each customer or developer installing a new water connection to the mainline shall be
assessed a Capital Charge in the amount of $2,500.00. The assessed amount shall be paid as a
lump sum fee.
iv) Each customer or developer installing a new wastewater connection to the mainline shall be
assessed a Capital Charge in the amount of $1,500.00. The assessed amount shall be paid as a
lump sum fee.
The version of By-law 14/20 received October 15, 2020 proposed the charges be
multiplied by the group capacity ratio size, rather than a single charge regardless of the
size of the meter. Since this version was the first received by the Board, and subsequent
versions did not include this language, the Board considers the version received on
November 9, 2020 to be the final version to be used in its decision.
The Town's rate study provided a history of the Board's approval of a System
Development Charge (SDC) to out-of-boundary customers in Board Order No. 62/17,
which was issued June 13, 2017. On August 14, 2017 the Town requested a review and
vary of Board Order No. 62/17, on the grounds the Board had erred in law.
The Board reviewed the Town's application to review and vary Order No. 62/17, and
issued Board Order No. 141/18 denying the Town's request.
The 2020 rate study stated (in part):
As noted earlier there now is a strong emphasis on not using taxes to fund capital projects
in the future as the Town plans to pay future capital costs by grants and by the use of
internal funds. This would have the affect of capital costs no longer being recovered in
taxes. Therefore, it will be only through consumption that future capital will be paid and
accordingly, new customers and/or developers will not have contributed to the capital cost
through taxes.
Order No. 43/22
April 25, 2022
Page 14 of 29
The rate study goes on to provide information relating to the three outstanding debentures
and the amount a vacant lot owner would have contributed over the life of these
debentures, stated to be $682.25.
In relation to determining the appropriate contribution for an SDC, the rate study stated:
The second issue relates to whether a landowner should be asked to pay a multiple of
the SDC if the landowner builds a multiple use facility, industrial facility or a multiple
residential property on the property. Since the SDC is intended to reflect the use of the
capacity of a system paid for by others it would seem appropriate to charge the landowner
based on the group capacity ratio of the meter installed to service the development. In
fact, this appears to be the direction the PUB was providing when it stated as follows:
"If the Town uses REUs in calculating the value of the SDC, then that is how the charge
should be applied to new customers. If a multi family dwelling is added with a two inch
connection, it should be paying the equivalent of 25 REUs."
Appendix 1 Clause 2.0 shows the Group Capacity Ratios (GPRs) of various meter sizes,
which could be used to determine the multiple of the SDC to be charged. A 5/8"
residential meter has a GPR of 1 and a 2" meter has a GPR of 25 times. While the GPR
does reflect the potential capacity to be used by a customer, a contribution of 25 times
the approved SDC will be significant. In Order No 62/17 the PUB notes that the then Town
Council was concerned with this approach presumably because the large SDC may deter
development.
There is an ability of the Town through General Funds to subsidize such SDCs by making
a transfer from General Funds to the Utility Fund by the amount of the subsidy. If the new
customer is an industrial customer, for example, that brings other benefits to the Town
then the transfer may be appropriate but the Transfer keeps the Utility whole as the Utility
customers alone ought not be the only residents contributing the incentive for the
development.
The Town will be considering these two (2) issues in making its application to the PUB.
Order No. 43/22
April 25, 2022
Page 15 of 29
No further evidence or explanation was provided in the application. The Town did not
submit any further description or information about the proposed subsidy from General
Funds.
The Board issued a Public Notice of Application on January 18, 2021 affording customers
the opportunity to comment to both the Board and the Town with respect to the proposed
rate changes. The Board received six responses to the Notice, all of which were from
members of the Tanco Crescent Water Cooperative.
The responses expressed concern about the metered water volume being used as the
basis for the wastewater volume being charged, given that not all water is returned to the
wastewater system.
Contingency Allowance and Utility Reserves
The Town has included in its projections a contingency allowance of 10% of net rate
requirements, less amortization expenses and interest. This equates to $9,760 for water
and $515 for wastewater.
There is an annual transfer of $12,250 from water rates and $75,000 from wastewater
rates to the Utility Reserve proposed.
Order No. 43/22
April 25, 2022
Page 16 of 29
Working Capital
As per the 2019 audited financial statements, the working capital surplus at December
31, 2019 was:
2019
Accumulated Fund Surplus
$5,774,897
Deduct tangible capital assets
$6,458,448
Add long term debt
$1,663,614
Add utility reserves
$628,804
Equals Working Capital Surplus
$1,608,867
Total utility expenses
$526,118
20% of total utility expenses (target)
$105,224
Operating Deficits
The Town has advised the Utility has not experienced any operating deficits in the past
five years.
Cost Allocation Methodology
The Board approved the Utility's current Cost Allocation Methodology (CAM) in Board
Order No. 105/13. The Town did not propose any changes to the existing CAM.
Unaccounted for Water
The Utility indicated the average unaccounted for water for the five year period ending
2019 was 8.9%.
Order No. 43/22
April 25, 2022
Page 17 of 29
5.0
Board Findings
Having considered the Town's filing and reviewed the responses to the Notice of
Application, the Board has chosen a paper review process.
The Board has reviewed the proposed revisions to other fees charged and terms and
conditions of service in By-law No. 14/20, and finds them to be reasonable, with the
exception of those relating to the System Development or Capital Charge.
The By-law sought to define three customers responsible for annual fire hydrant rental
charges; the Town itself, the RM of Lac du Bonnet and Manitoba Hydro. Typically, fire
hydrant rental charges are the responsibility of the municipality that owns the Utility. The
Board is not aware of any other utility in this position. The Board will vary Clause 4.0 to
grant approval of the annual charge for the fire hydrant charge, without designating who
is responsible for payment of the annual charge. The Board will direct the Town to provide
evidence of consultation with, and Notice to, both the RM and Manitoba Hydro regarding
the proposed charging of a hydrant fee, including the Town's rationale for the charge.
This evidence must be filed with the Board prior to implementation of the charge to the
RM or Manitoba Hydro.
The Board has reviewed the Town's proposal to charge the RM for customers in the
Tanco Development based on water volumes. The practice of using water volumes as
the basis for wastewater volumes being charged is common to all metered utilities,
including the customers of the Utility located in the Town itself. The Board is not aware
of any utility in Manitoba metering wastewater and recognizes using the water inflows is
the best practice. The Board finds the Town's proposed revisions to better align with the
user-pay principle, and will grant approval to the Town to charge the RM of Lac du Bonnet
for wastewater usage based on the water meter readings for the Tanco Crescent Water
Co-op Ltd. Since the Town bills the RM annually, the effective date of this change will be
January 1, 2022.
Order No. 43/22
April 25, 2022
Page 18 of 29
The wastewater charge is to reflect the actual water meter reading, and there is no
established minimum quarterly volume associated with this billing. The Board
recommends the RM and/or the Tanco Water Co-op cooperate with the Town to provide
timely meter readings, in order to keep the Town's administration costs associated with
Tanco as economical as possible.
The Board notes that on page one of By-law 14/20 mentions "...each customer connected
to the wastewater system but not connected to the water system..." however, the only
wastewater-only customers identified are the Tanco customers. If this section of page
one of the By-law refers to Tanco customers, it should be revised to reflect the Board's
decisions in this Order, otherwise it should be stricken from the By-law, before third and
final reading.
In addition, Clause 1.0 b) should be amended from "...the number of residents..." to
"...the number of connections...", as reflected in Schedule A to this Order.
The Board has reviewed the Town's submission in support of revising the System
Development Charge to apply to new connections located within the Town. The Town's
application suggested the possibility of the General Fund subsidizing these charges, but
does not provide details of such an arrangement.
The Board considered the Town's proposal to adjust the System Development Charge to
exclude the contributions for the current value over the life of the debentures valued at
$682.25. This valuation only includes the three outstanding water debentures, and makes
no adjustment for contributions to capital associated with wastewater at all.
In page 10 of Board Order No. 62/17 the Board found:
"The Town submitted that its intention is to charge the same SDC to both in and out of
boundary customers; therefore the Board does not find that this adjustment is reasonable
for all users and does not align with the goal of the system buy-in method. The Board
finds that the Town taxpayers are not subject to the SDC, as they have already
contributed to the existing equity and will continue to contribute through their taxes."
Order No. 43/22
April 25, 2022
Page 19 of 29
The Board does not find the Town has provided any compelling evidence to revise the
finding from Board Order No. 62/17. The Board will edit the by-law to include the System
Development Charge approved in Board Order No. 62/17 into Clause 5.0, which applies
to out-of-boundary connections only.
The Town's attempts to establish an SDC (also referred to in previous submissions as
connection fees, one time capital charge fee, etc) are complex and date back to 2011.
The history of the issue is detailed in Board Orders No. 46/13, 80/15, 62/17 and 141/18.
The Board has reviewed the application and revenue projections presented by the Town
and grants approval of the revised rates.
The Town's submission included offsetting amounts for capital contributions from the Gas
Tax Reserve and made reference to the "amortization of grants" allowed by the Board, as
established in Board Order 93/09.
In page 10 of Board Order No. 93/09, "...for rate setting purposes the Board will require
that amortization expense be offset in the reflection of rates by the amortization of related
capital grants." The distinction of the grants being amortized being defined as capital
grants is important and intentional. The amortization adjustment is only permitted for
capital grants, which are designated and must be used for specific capital projects. The
Board allowed the deferral of capital grants, because there is an expectation the money
from a capital grant will be spent on a mutually known and agreed to project, rather than
funds with no conditions attached to them.
Gas Tax Reserves are not capital grants, and may not be amortized in the same way for
rate setting purposes. Future submissions from the Town should not include any
offsetting amortization except that stemming from capital grants, as intended in Board
Order No. 93/09. The Public Utilities Board Note to the Consolidated Financial
Statements should provide verification to support the Town's submission regarding capital
grant amortization.
Order No. 43/22
April 25, 2022
Page 20 of 29
The Board strongly encourages the Town to work closely with its auditor(s) to ensure the
Public Utilities Board Note to the Consolidated Financial Statements is complete and
accurate. If this note is omitted, incomplete, or incorrect, it limits the Board's ability to
assess the Utility's financial position, and the Town's ability to set appropriate rates to
sustain the Utility and its operations.
The Town's failure to amend its utility by-law to include the revised rates approved in
Board Order No. 36/16 and the SDC approved in Board Order No. 62/17 is of concern to
the Board. All items found in the empowerment section of an Order, under the heading,
"IT IS THEREFORE ORDERED THAT:" are Board ordered directives. Directives are not
recommendations, or discretionary and all directives must either be complied with or
appealed as outlined below. Pursuant to The Public Utilities Board Act, the Board can
apply penalties for noncompliance.
The Board will order the Town to amend its utility rate by-law to reflect the decisions in
this Order. Considering the Board's rules allow 30 days for applications to review its
decisions, the Board will direct the Town to submit the by-law, in draft form, to the Board
to review it for completeness on or before May 31, 2022 but prior to third and final reading.
According to the Manitoba Municipal Officials Directory 2022, Town Council meets the
2nd and 4th Thursday of every month, therefore the Board will expedite the review and
commit to approving the draft by-law one week from receipt (June 6, 2022 or sooner), to
allow for Council to give it third reading at the June 9, 2022 meeting.
Once the by-law has had third and final reading, the Town must submit a certified copy
to the Board, on or before June 13, 2022.
The Board directs the Town to review its water and wastewater rates for adequacy and
file a report with the Board, as well as an application for revised rates if required, by no
later than June 30, 2025.
The Board reminds the Town regular reviews are important for a financially sound utility
and encourages the Town to review Board Order No. 86/17 for future rate applications.
Order No. 43/22
April 25, 2022
Page 21 of 29
The Order outlines the Simplified Rate Application Process for municipally owned public
utilities. If, after its rate review, the Town finds it meets the designated criteria for a
simplified rate application, it should apply for future rates using the Simplified Rate
Application Process.
6.0
IT IS THEREFORE ORDERED THAT:
1. The water and wastewater rates for the Town of Lac du Bonnet Water and
Wastewater Utility, BE AND ARE HEREBY APPROVED in accordance with the
attached Schedule A, effective July 1, 2022, January 1, 2023 and 2024.
2. The Town of Lac du Bonnet provide to the Public Utilities Board evidence of
consultation with, and Notice to, both the Rural Municipality of Lac du Bonnet and
Manitoba Hydro, regarding the annual hydrant charge, including the Town of Lac
du Bonnet's rationale for the charge. This is to be filed with the Public Utilities
Board prior to implementation of the charge.
3. The Town of Lac du Bonnet's application to bill the Rural Municipality of Lac du
Bonnet for residents of the Tanco Development based on water meter readings for
the Tanco Crescent Water Cooperative, BE AND IS HEREBY APPROVED in
accordance with the attached Schedule A, effective January 1, 2022.
4. The Town of Lac du Bonnet amend its Utility rate By-law to reflect the decisions in
this Order, and submit a draft copy to the Board on or before May 31, 2022.
5. The Town of Lac du Bonnet's application to charge the System Development
Charge to residents within the boundaries of the Town of Lac du Bonnet BE AND
IS HEREBY DENIED.
6. The Town of Lac du Bonnet review its Utility rates for adequacy and file a report
with the Public Utilities Board, as well as an application for revised rates (if
applicable), on or before June 30, 2025.
Order No. 43/22
April 25, 2022
Page 22 of 29
Fees payable upon this Order - $500.00
Board decisions may be appealed in accordance with the provisions of Section 58 of The
Public Utilities Board Act, or reviewed in accordance with Section 36 of the Board's Rules
of Practice and Procedure. The Board's Rules may be viewed on the Board's website at
www.pubmanitoba.ca.
THE PUBLIC UTILITIES BOARD
"Shawn McCutcheon"
Panel Chair
"Jennifer Dubois, CPA, CMA"
Assistant Associate Secretary
Certified a true copy of Order No. 43/22
issued by The Public Utilities Board
Assistant Associate Secretary
Order No. 43/22
April 25, 2022
Page 23 of 29
SCHEDULE "A"
TO BOARD ORDER NO
TOWN OF LAC DU BONNET
WATER AND WASTEWATER RATES
BY-LAW NO.14/20
(effective __________________ P.U.B. Order No.___/_
July 1, 2022
1.0 SCHEDULE OF QUARTERLY RATES
A schedule of rates per cubic meter (m3) per quarter
Commodity Rates
Water
Wastewater
Water &
Wastewater
Domestic per m3
$2.75
$1.25
$4.00
Truck fill per m3
$4.10
2.0 MINIMUM QUARTERLY CHARGES
Notwithstanding the Commodity Rates set forth in paragraph 1.0 hereof, all customers will pay
the applicable minimum charges set out below, which will include water allowances indicated:
a) Water & Wastewater Customers
Meter Size
Group
Capacity
Water
Included,
Customer
Service
Commodity Charges
Total
Quarterly
Ratio
m3
Charge
Water
Wastewater
Minimum
Water and Wastewater Customers
5/8"
1
14
$20.75
$38.50
$17.50
$76.75
3/4"
2
28
$20.75
$77.00
$35.00
$132.75
1"
4
56
$20.75
$154.00
$70.00
$244.75
1 1/2"
10
140
$20.75
$385.00
$175.00
$580.75
2"
6"
10"
25
170
610
350
2380
8540
$20.75
$20.75
$20.75
$962.50
$6,545.00
$23,485.00
$437.50
$2,975.00
$10,675.00
$1,420.75
$9,540.75
$34,180.75
b) Tanco Only Customers
The annual wastewater charge shall be based on annual meter readings (multiplied by the sewer
rate) plus an annual service charge equal to a multiple of a single quarterly service charge based
on the number of connections on the Tanco system (20).
Order No. 43/22
April 25, 2022
Page 24 of 29
January 1, 2023
1.0 SCHEDULE OF QUARTERLY RATES
A schedule of rates per cubic meter (m3) per quarter
Commodity Rates
Water
Wastewater
Water &
Wastewater
Domestic per m3
$2.80
$1.30
$4.10
Truck fill per m3
$4.15
2.0 MINIMUM QUARTERLY CHARGES
Notwithstanding the Commodity Rates set forth in paragraph 1.0 hereof, all customers will pay
the applicable minimum charges set out below, which will include water allowances indicated:
a) Water & Wastewater Customers
Meter Size
Group
Capacity
Water
Included,
Customer
Service
Commodity Charges
Total
Quarterly
Ratio
m3
Charge
Water
Wastewater
Minimum
Water and Wastewater Customers
5/8"
1
14
$21.25
$39.20
$18.20
$78.65
3/4"
2
28
$21.25
$78.40
$36.40
$136.05
1"
4
56
$21.25
$156.80
$72.80
$250.85
1 1/2"
10
140
$21.25
$392.00
$182.00
$595.25
2"
6"
10"
25
170
610
350
2380
8540
$21.25
$21.25
$21.25
$980.00
$6,664.00
$23,912.00
$455.00
$3,094.00
$11,102.00
$1,456.25
$9,779.25
$35,035.25
b) Tanco Only Customers
The annual wastewater charge shall be based on annual meter readings (multiplied by the sewer
rate) plus an annual service charge equal to a multiple of a single quarterly service charge based
on the number of connections on the Tanco system (20).
January 1, 2024
1.0 SCHEDULE OF QUARTERLY RATES
A schedule of rates per cubic meter (m3) per quarter
Commodity Rates
Water
Wastewater
Water &
Wastewater
Domestic per m3
$2.85
$1.30
$4.15
Truck fill per m3
$4.20
Order No. 43/22
April 25, 2022
Page 25 of 29
2.0 MINIMUM QUARTERLY CHARGES
Notwithstanding the Commodity Rates set forth in paragraph 1.0 hereof, all customers will pay
the applicable minimum charges set out below, which will include water allowances indicated:
a) Water & Wastewater Customers
Meter Size
Group
Capacity
Water
Included,
Customer
Service
Commodity Charges
Total
Quarterly
Ratio
m3
Charge
Water
Wastewater
Minimum
Water and Wastewater Customers
5/8"
1
14
$21.80
$39.90
$18.20
$79.90
3/4"
2
28
$21.80
$79.80
$36.40
$138.00
1"
4
56
$21.80
$159.60
$72.80
$254.20
1 1/2"
10
140
$21.80
$399.00
$182.00
$602.80
2"
6"
10"
25
170
610
350
2380
8540
$21.80
$21.80
$21.80
$997.50
$6,783.00
$24,339.00
$455.00
$3,094.00
$11,102.00
$1,474.30
$9,898.80
$35,462.80
b) Tanco Only Customers
The annual wastewater charge shall be based on annual meter readings (multiplied by the sewer
rate) plus an annual service charge equal to a multiple of a single quarterly service charge based
on the number of connections on the Tanco system (20).
Order No. 43/22
April 25, 2022
Page 26 of 29
3.0 WATER AND WASTEWATER CONNECTIONS
i) Each customer or developer installing a new water connection to the mainline shall be
assessed a water connection inspection fee in the amount of $750.00. The assessed amount shall
be paid as a lump sum fee at time of application.
ii) Each customer or developer installing a new wastewater connection to the mainline shall be
assessed a wastewater connection inspection fee in the amount of $350.00. The assessed amount
shall be paid as a lump sum fee at time of application.
iii) Each customer or developer installing a new water service connection to the water mainline
shall be responsible for installing and connecting the water service line to the water main and to
pay all charges. Conditions on Town property to be returned to original state as before water line
installations.
iv) Each customer or developer installing a new wastewater service connection to the wastewater
mainline shall be responsible for installing and connecting the wastewater service line to the
wastewater main and to pay all charges. Conditions on Town property to be returned to original
state as before wastewater line installations.
v) Each customer applying for water "turn on" or "turn off" of service ($50.00) during any
quarter, shall pay the full amount of the minimum quarterly charge during the "turn off", unless
the customer is physically disconnected. In all cases any excess water used will be charged at the
rates set forth under Commodity Rates.
vi) All costs for new connections and maintenance thereafter shall be paid by the customer or
developer and such connections are to be approved by the Council of the Town of Lac du Bonnet.
vii) A service charge of Fifty ($50.00) Dollars shall be paid before any water is turned on, shall
be the responsibility of the owner.
4.0 HYDRANT RENTALS
The annual charge for hydrant rentals shall be two hundred ($200.00) Dollars.
5.0 RATES TO CUSTOMERS LOCATED OUTSIDE THE LIMITS OF THE TOWN OF
LAC DU BONNET
a) Customers located outside the Town of Lac du Bonnet shall pay;
i) The appropriate rate as set out in paragraph 1.0 and 2.0 hereof, based on the units
allotted to the services;
ii) All costs of constructing and maintaining all connection pipes and other items required
to allow service to be used;
iii) And, in addition; from the date of connection, a surcharge to cover all current
and future tax amounts for utility purposes, which they would be required to pay if
located in the Town.
iv) Each customer or developer installing a new water connection to the mainline shall be
assessed a Capital Charge in the amount of $2,500.00. The assessed amount shall be paid as
a lump sum fee.
v) Each customer or developer installing a new wastewater connection to the mainline shall
be assessed a Capital Charge in the amount of $1,500.00. The assessed amount shall be paid
as a lump sum fee.
Order No. 43/22
April 25, 2022
Page 27 of 29
b) The Rural Municipality of Lac du Bonnet shall pay, to cover service provided to residences
on the properties in the Tanco subdivision
i)
The Utility rates set forth in paragraph 1.0 and 2.0 hereof;
ii)
Any additional surcharge sufficient to cover all taxes for the sewage lagoon
which it would be required to pay if such residences were located in the Town.
c) That the above levies are due and payable September 30th of the year in which they are
levied.
6.0 BILLING AND PAYMENTS
i) All accounts shall be billed after the end of each quarter. Bills will be due and payable as
per due date as stated on the bills presented. A late payment penalty will apply as per due date as
stated on the bills presented. A penalty of one and one quarter percent per month of the bills shall
be charged if not paid by the due date. The late payment charge will compound quarterly and will
appear on the customer's next quarterly bill if unpaid.
Unpaid Accounts May be Added to Taxes on Land.
ii) Pursuant to section 252 of the Municipal Act. L.R.M.1996, c. 58, the amount of all
outstanding charges, including penalties, for water and wastewater service are a lien and charge
upon that land, and shall be collected in the same manner in which ordinary taxes on the land are
collectable, and with like remedies.
iii) If any account is not paid within three (3) months after the due date, the service may be
disconnected without further notice. Any service so disconnected shall not be reconnected until
all arrears, penalties and a reconnection fee of fifty ($50.00) Dollars has been paid.
7.0 COMPLAINTS AND ADJUSTMENTS
If a customer believes that his/her meter reading is in error, he/she may present his/her claim in
writing to the Town's Office before the bill becomes delinquent, 30 days from the billing date.
Such claim, if made after the bill has come delinquent, shall not be effective in preventing
discontinuance of service. The customer may pay such bill under protest and said payment shall
not prejudice his/her claim.
8.0 METERS
i) That all water connections be metered. The meter is to be supplied by and is to remain the
property of the Utility. The cost of the meter shall be paid by the customer.
Meter Repairs
ii) Where a Town of Lac du Bonnet water meter is damaged as a result of negligence of a user,
such user shall pay the cost of repairing the damaged meter and the said amount will immediately
become a debt due and owing to the Town of Lac du Bonnet within ten (10) days of the demand
of same, the water service of the said user may be disconnected. A fee of fifty ($50.00) Dollars
shall be charged for a re-connection of the service disconnected under this paragraph.
Meter Testing
iii) Any customer who desires and requests that his/her water meter be tested for accuracy, shall
deposit a sum of Fifty ($50.00) Dollars with the Town of Lac du Bonnet and if the meter when
Order No. 43/22
April 25, 2022
Page 28 of 29
tested shall be found to register in excess of the allowable limits, the deposit shall be refunded and
the customer's account adjusted for the preceding three month's use.
Meter Fees
iv) Fees for the disconnection, removal or reconnection of water meters shall be Fifty ($50.00)
Dollars.
Meter Tampering
v) Any customer who tampers with the meter seal is to pay a meter reinstatement fee of Fifty
($50.00) Dollars to have the meter resealed. The quarterly billings for the year prior to resealing
of the meter will have the volumes readjusted according to the two quarters after the resealing of
the meter if the volumes are greater than 10% lower than the two quarters after resealing of the
meter then the difference in volume for each of the previous four quarters will be adjusted to reflect
the increase and will be invoiced to the customer. Any customer who tampers with the meter
subsequent to the first tampering will pay a fine of One Hundred and Fifty ($150.00) Dollars for
each occurrence.
Meter Circumventing
vi) Any customer who circumvents the water meter by installing a bypass line around the meter
or by a dual line from the water main so as to illegally draw water that has not been metered shall
pay a fine of $1,000.00 plus a charge for un-metered water consumed for each occurrence. The
customer will upon discovery by the Town immediately cease the use of the bypass line and
remove the bypass line within 24 hours of discovery. The Town has the right to terminate all water
services to the customer in the event of failure to eliminate the bypass and pay the fine and water
charges.
9.0 BULK SALES
That the following rates shall be charged for treated water received from the truck fill system:
2022 (effective July 1, 2022)
$4.10/m3
2023 (effective January 1, 2023)
$4.15/m3
2024 (effective January 1, 2024)
$4.20/m3
10.0 BILLINGS
All accounts for minimum quarterly charges for metered services as set forth in this Schedule of
Quarterly rates shall be billed at the end of each quarter together with any excess charges for
metered water and wastewater services supplied to them at the rates and terms set out in this
Schedule.
11.0 METER READINGS
Quarterly Meter Readings
i) The Town will read the customer meter quarterly for quarterly billing purposes.
Annual Meter Reading
ii) The customer will provide access to the Town meter reader to record the water meter reading
and to inspect the meter. In the event that the customer is not home or does not grant access, the
customer will be notified that they must arrange a time and date for an appointment with the water
Order No. 43/22
April 25, 2022
Page 29 of 29
utility to have the meter reading recorded and inspected within 30 days of the water utility notice.
Failure to arrange and provide access to the water utility within 30 days of the notice will result in
a $100.00 fine. After a period of 60 days from the water utility notice and a failure to arrange and
provide access to the water utility, the water service may be shut off. Fees for disconnection and
reconnection according to section 8.0 will apply.
12.0 On Site Private Wastewater Holding and Disposal Facilities and Private Well Water
Systems
i) On site private wastewater holding and disposal facilities are not allowed in the Town.
ii) On site private well water systems are not allowed in the Town.