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To:
Council
From:
Les J Halucha, Treasurer
Date:
June 4, 2025
Subject:
2025 Water Rate Bylaw Amendment
BACKGROUND
At the May 27th, 2025 regular Council meeting, Sean-Michael Stephen of Watson & Associates
Economists Ltd. presented a financial plan for waterworks as part of a submission of maintaining
a municipal drinking water licence for the Town's water systems per the Safe Drinking Water
Act, 2002 (SDWA) and Ontario Regulation 453/07. This was due June 1st, 2025 and has been
submitted. The SDWA requires a plan forecast over a period of at least 6 years but must be
submitted every 5 years into the Ministry.
DISCUSSION
The previous financial plan was from 2020. The last full water rate study was completed in
January 2015 with water rates to 2024. Council passed a temporary bylaw November 26th,
2024 authorizing the water rates to increase by 2.7% effective January 1st, 2025.
The water rate study proposes an initial water rate increase of the monthly flat charge to $25
from $5.13 effective July 1st, 2025 with no increase to the per cubic metre water rate. The
proposed rates are to increase total annual water billing by 13.2% for the next 5 years starting
January 1st, 2026.
The water financial plan approved by Council for the water licence renewal is supported by the
calculated water rates proposed. Council is required to pass the attached amended water rate
bylaw in keeping with the 2025 Water Financial Plan submitted.
RECOMMENDATION
That Council pass the amending water rate bylaw.
Attachments:
REPORT
Town of Mono
New Business
Council Session 11-2025
2025 Water Rate Bylaw Amendment
Page 2 of 2
1. Watson & Associates Economists Ltd Water Rate Study & Presentation
2. 2025 Amending Water Rate Bylaw
Council Presentation
May 27, 2025
Town of Mono
2025 Water and Wastewater Rate Study
0
Introduction
- Watson & Associates Economists Ltd. (Watson) has been retained by the Town
to undertake a Water & Wastewater Rate Study and O.Reg. 453/07 Water
Financial Plan
- This presentation is review the findings of the Water Rate Study and Water
Financial Plan only
- Water Rate Study Objectives:
-
Forecast water service demands;
-
Prepare assessment of capital needs and funding sources;
-
Assess operating costs and revenues;
-
Undertake rate calculations and structure analysis;
-
Water Financial Plan Objectives
-
Prepare financial plan in accordance with O.Reg. 453/07 as part of the water
license renewal application submission requirements
2025 Water & Wastewater Rate Study & O.Reg. 453/07 Water Financial Plan
1
Study Process
2
Assessment of service
demands, water service
capital and operating costs,
and rate structure
alternatives
Review Draft
Findings with Staff
Presentation of
Recommendations to
Council
Project Startup meeting
Preparation of
Final Rate Study
and Financial
Plan
Implementation of
approved water
rates and
submission of
Water Financial
Plan to Province
December 2024
January to May 2025
May 2025
May 2025
May 27, 2025
Customer & Consumption Growth Forecast
3
Water Customer Forecast
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Existing
1,076
1,076
1,076
1,076
1,076
1,076
1,076
1,076
1,076
1,076
1,076
New - Growth
-
-
-
-
-
-
2
6
10
14
18
Total
1,076
1,076
1,076
1,076
1,076
1,076
1,078
1,082
1,086
1,090
1,094
-
18 new connections anticipated in later portion of forecast period
-
New customers assumed to consume 245m3 per year (Current average is 262m3 per
year)
-
Total annual water consumption to remain relatively constant at ~280,000 m3/year
(accounting for growth and conservation from existing households)
Capital Needs
-
2025-2035 capital needs total $18.5 million ($1.7 million per year)
- Includes $7.2 million for New Tower and $7.8 million for arsenic remediation
-
Average annual lifecycle costs to rehabilitate and replace infrastructure
over its lifecycle are $859,000
4
Facilities
18,707,666
392,861
Watermains
22,707,858
283,848
Meters
1,249,482
83,299
SCADA
1,516,877
99,136
Total
$44,181,884
$859,145
*CIRC - Canadian Infrastructure Report Card
Annual contribution target for rate study
based on Mid range end of CIRC reinvestment
Annual contribution target for rate study
based on straight line approach.
Description
Total
Replacement
Cost (2025$)
Target for
Rate Study
Comments/Notes
Capital Needs & Funding
5
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Forecast Capital Needs
New Composite Elevated Tower (CET) Water Tower
Arsenic Remediation
Other
Average Capital Needs
Average Annual Lifecycle Costs
Capital Needs & Funding
-
Capital Needs have been inflated by 4.4% per year for capital funding
purposes
-
Capital funding sources product of available rate revenue and reserves
associated with rate forecast
-
Debt forecast at 3.9% per year and 20-year term
6
Capital Financing
2025-2035
Provincial/Federal Grants
4,962,801
Non-Growth Related Debenture Requirements
9,802,423
OSTAR Reserve Fund
845,595
Water Reserve
6,149,381
Total Capital Financing
21,760,200
Reserve Forecast
7
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Opening Balance
1,602,166
883,776
213,327
-
-
-
-
-
-
-
-
Transfer from Operating
14,810
248,956
374,048
421,052
356,811
473,782
523,061
593,436
676,649
754,611
668,700
Transfer to Capital
733,200
919,405
587,375
421,052
356,811
473,782
523,061
593,436
676,649
754,611
110,000
Transfer to Operating
-
-
-
-
-
-
-
Closing Balance
883,776
213,327
-
-
-
-
-
-
-
-
558,700
Operating Budget Forecast
-
Operating costs forecast to increase at inflationary levels
- Salaries, contracts, professional fees - 2.5% per year
- Other - 3.3% per year
- Hydro & Heating - 5% per year
- Insurance - 10% per year
-
Operating costs to increase from $1.02 million per year to $1.41 million in
2035 (3.2% average annual increase)
8
Rate Setting Approach
9
Annual Lifecycle Cost
Annual Capital Spend
Rate Based Capital Funding
DRAW DOWN RESERVES
& ISSUE DEBT
Annual Lifecycle Cost
Annual Capital Spend
Rate Based Capital Funding
CONTRIBUTIONS TO
RESERVES
-
Billing revenue should be increased over forecast to fund operating costs
and long-term capital needs
Capital and Operating Funding Plan
10
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Operating Expenditures
Transfers to Reserves
Debt Payments
Operating plus Lifecycle Funding Target
-
Gross annual operating costs
to increase by $1.7 million
(10.3% per year)
-
78% ($1.3 million) of
increase related to
increasing capital
expenditures for lifecycle
purposes
Rate Structure
-
Current rate structure maintained with an emphasis on increasing revenue from the
monthly base charge to improve revenue stability and recover fixed costs (capital) of
service
-
Rate increases imposed mid-year 2025 with emphasis on higher increases in near term
(2026 to 2030)
-
Volumetric rates increase based on water consumption levels (higher rates for higher
levels of consumption). It is proposed to lower the consumption levels in each
threshold to improve water conservation
11
Current
Revised
1-350
1-275
351-500
276-425
501-650
426-575
651-800
576-725
801-1,000
726-875
1,001 and over
876 & Over
Cubic Metres per Year
Rate Forecast
12
Base Charge
Jan-Jun
2025
July-Dec
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Metered Users
Monthly Base Charge
$5.13
$25.00
$28.86
$33.32
$38.46
$44.40
$51.26
$59.17
$68.31
$78.86
$91.04
$105.09
% Increase
15.4%
15.4%
15.4%
15.4%
15.4%
15.4%
15.4%
15.4%
15.4%
15.4%
Volume Charge (per Cubic Metre)
Cubic Metres per Year
1-275
$2.44
$2.44
$2.73
$3.06
$3.43
$3.84
$4.30
$4.41
$4.52
$4.64
$4.76
$4.88
276-425
$2.87
$2.87
$3.21
$3.60
$4.03
$4.52
$5.06
$5.19
$5.32
$5.46
$5.60
$5.74
426-575
$3.10
$3.10
$3.47
$3.89
$4.36
$4.88
$5.46
$5.60
$5.75
$5.90
$6.05
$6.21
576-725
$3.30
$3.30
$3.70
$4.14
$4.64
$5.19
$5.82
$5.97
$6.12
$6.28
$6.44
$6.61
726-875
$3.50
$3.50
$3.92
$4.39
$4.92
$5.51
$6.17
$6.33
$6.49
$6.66
$6.83
$7.01
876 & Over
$3.70
$3.70
$4.14
$4.64
$5.20
$5.82
$6.52
$6.69
$6.86
$7.04
$7.22
$7.41
% Increase
12.0%
12.0%
12.0%
12.0%
12.0%
2.6%
2.6%
2.6%
2.6%
2.6%
Unmetered Users
Flat Rate (monthly)
$123.00
$142.87
$160.87
$181.17
$204.06
$229.87
$258.98
$272.26
$286.89
$303.08
$321.04
$341.03
% Increase
12.6%
12.6%
12.6%
12.6%
12.7%
5.1%
5.4%
5.6%
5.9%
6.2%
Rate Impacts
13
-
Average annual water bills to increase by 10.6% per year ($156 per year)
- Approximately 40% of increase related to inflationary increases
Description
2025
Mid-2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Monthly Base Rate
$5.13
$25.00
$28.86
$33.32
$38.46
$44.40
$51.26
$59.17
$68.31
$78.86
$91.04
$105.09
Block 1 Rate
$2.44
$2.44
$2.73
$3.06
$3.43
$3.84
$4.30
$4.41
$4.52
$4.64
$4.76
$4.88
Annual Base Rate Bill
$62
$300
$346
$400
$462
$533
$615
$710
$820
$946
$1,092
$1,261
Volume
245
245
245
245
245
245
245
245
245
245
245
245
Annual Volume Bill
$598
$598
$670
$750
$840
$941
$1,054
$1,081
$1,109
$1,137
$1,167
$1,197
Total Annual Bill
$659
$898
$1,016
$1,150
$1,301
$1,473
$1,669
$1,791
$1,928
$2,083
$2,259
$2,458
% Increase - Base Rate
387.3%
15.4%
15.4%
15.4%
15.4%
15.4%
15.4%
15.4%
15.4%
15.4%
15.4%
% Increase - Volume Rate
0.0%
12.0%
12.0%
12.0%
12.0%
12.0%
2.6%
2.6%
2.6%
2.6%
2.6%
% Increase - Total Annual Bill
36.2%
13.2%
13.2%
13.2%
13.2%
13.2%
7.3%
7.7%
8.0%
8.4%
8.8%
$ Increase - Total Annual Bill
$238
$118
$134
$152
$172
$195
$122
$138
$155
$175
$199
Annual Customer Water Bill - Based on 245 m³ of usage and ⅝" or ¾" meter
Customer Impacts
14
$-
$500
$1,000
$1,500
$2,000
Survey of Annual Residential Water Bill - 245 m³ of Annual Consumption on 5/8" Meter
Water
Recommendations
1. That Council provide for the recovery of all water costs through full cost recovery
rates
2. That Council approve the 2025 water rate increase and forecast
3. That Council maintain the Capital (lifecycle) Reserve Funds for water services
as discussed in the final report
4. That Council direct staff to review the Rate Study in five years to validate Study
results and make any necessary rate adjustments
15
Rate Study
Recommendations
1. The Town of Mono Financial Plan prepared by Watson & Associates
Economists Ltd. dated May 22, 2025 be approved;
2. Notice of availability of the Financial Plan be advertised;
3. The Financial Plan, the Council Resolution approving the Financial Plan, and the
Water & Wastewater Rate Study underpinning the Financial Plan be submitted
to the Ministry of Municipal Affairs and Housing. (O.Reg. 453/07, Section 3 (1)
6); and
4. The Council Resolution approving the Financial Plan be submitted to the
Ministry of the Environment, satisfying the requirements under the Safe Drinking
Water Act. (S.D.W.A. Section 32 (5) 2 ii))
16
O.Reg. 453/07 Water Financial Plan
Watson & Associates Economists Ltd.
905-272-3600
May 22, 2025
[email protected]
2025 Water Rate Study
Town of Mono
________________________
Final Report
Watson & Associates Economists Ltd.
Table of Contents
Page
1.
Introduction ...................................................................................................... 1-1
1.1
Background ............................................................................................. 1-1
1.2
Study Process ......................................................................................... 1-1
1.3
Regulatory Changes in Ontario ............................................................... 1-3
1.4
Sustainable Water and Sewage Systems Act ......................................... 1-3
1.5
Safe Drinking Water Act .......................................................................... 1-3
1.6
Financial Plans Regulation ..................................................................... 1-4
1.7
Water Opportunities Act .......................................................................... 1-6
1.8
Water Rate Calculation Methodology ..................................................... 1-8
2.
Forecast Growth and Service Demands ........................................................ 2-1
2.1
Current Service Demands ....................................................................... 2-1
2.2
Forecast Service Demands ..................................................................... 2-1
3.
Capital Infrastructure Needs ........................................................................... 3-1
3.1
Introduction ............................................................................................. 3-1
3.2
Overview of Lifecycle Costing ................................................................. 3-1
3.2.1
Definition .................................................................................... 3-1
3.2.2
Financing Costs ......................................................................... 3-2
3.2.3
Costing Methods ........................................................................ 3-5
3.3
Asset Inventory ....................................................................................... 3-7
3.4
Capital Forecast ...................................................................................... 3-7
4.
Capital Cost Financing Options ..................................................................... 4-1
4.1
Summary of Capital Cost Financing Alternatives .................................... 4-1
4.2
Development Charges Act, 1997 ............................................................ 4-2
4.3
Municipal Act .......................................................................................... 4-2
4.4
Grant Funding Availability ....................................................................... 4-4
4.5
Existing Reserves/Reserve Funds .......................................................... 4-4
4.6
Debenture Financing .............................................................................. 4-4
4.7
Recommended Approach ....................................................................... 4-5
Table of Contents (Cont'd)
Page
Watson & Associates Economists Ltd.
5.
Operating Expenditure Forecast .................................................................... 5-1
5.1
Operating Expenditures .......................................................................... 5-1
5.1.1
Water Services ........................................................................... 5-1
5.2
Operating Revenues ............................................................................... 5-1
6.
Forecast Water Rates ...................................................................................... 6-1
6.1
Introduction ............................................................................................. 6-1
6.2
Water Rates ............................................................................................ 6-1
6.3
Water Rates Annual Impacts .................................................................. 6-1
7.
Recommendations .......................................................................................... 7-1
Appendix A Water Services ..................................................................................... A-1
Appendix B Ontario Regulation 453/07 Water Financial Plan .............................. B-1
Watson & Associates Economists Ltd.
List of Acronyms and Abbreviations
Acronym
Full Description of Acronym
D.C.
Development Charges
MECP
Ministry of the Environment, Conservation and Parks
MMAH
Ministry of Municipal Affairs and Housing
OCIF
Ontario Community Infrastructure Fund
O. Reg.
Ontario Regulation
PSAB
Public Sector Accounting Board
S.D.W.A.
Safe Drinking Water Act
T.C.A.
Tangible Capital Assets
W.O.A.
Water Opportunities Act
Report
Watson & Associates Economists Ltd.
Chapter 1
Introduction
Watson & Associates Economists Ltd.
PAGE 1-1
1. Introduction
1.1 Background
The Town of Mono (Town) provides municipal water services through two drinking water
distribution systems, Cardinal Woods and Island Lake. As of 2024, the Cardinal Woods
and Island Lake systems service 452 and 624 water customers, respectively.
Across both of the Town's water systems, the bill rates imposed are uniform. The
structure employed by the Town for metered customers is compromised of a monthly
base charges and an increasing block structure where the $ per m3 charge increases as
monthly consumption increases. There is also a flat rate charge of $123 per month for
all non-metered customers.
Table 1-1 displays the Town's water rates in 2025.
Table 1-1
2025 Water Rates
1.2 Study Process
Watson & Associates Economists Ltd. (Watson) was retained by the Town to undertake
a comprehensive Water and Wastewater Rate Study (Rate Study) with the wastewater
rate study portion to be prepared at a later date. This Rate Study has been prepared to
Monthly Base Charge
$5.13
Cubic Metres per Year
Charge per Cubic Metre
1-350
$2.44
351-500
$2.87
501-650
$3.10
651-800
$3.30
801-1,000
$3.50
1,001 and over
$3.70
Flat Rate (monthly)
$123.00
Unmetered Users
Town of Mono
2025 - Water Billing Rates
Volume Charge (per m3)
Base Charge
Watson & Associates Economists Ltd.
PAGE 1-2
assess the water rates in the Town over the period from 2025-2034. Watson has also
been retained to prepare a Water Financial Plan which will form part of the Town's
drinking water license renewal application. The O.Reg. 453/07 water financial plan has
been prepared based on the findings of the Rate Study and is attached as Appendix B
to this report. The objectives of the study and the steps involved in carrying out this
assignment are summarized below:
- Update water service demand assumptions based on analysis of historical
consumption and recent trends;
- Estimate future consumption levels by applying revised demand assumptions to
forecast growth based on anticipated growth historical growth in the serviced
areas of the Town in recent years and forecast growth in the Town's ongoing
Development Charges (D.C.) Background Study;
- Identify all current and future water and wastewater system capital needs to
assess the immediate and longer-term implications;
- Build a capital program that blends lifecycle needs arising from the Town's Asset
Management Plan and asset inventory with the annual capital spending required
over the forecast period;
- Identify potential methods of cost recovery from the capital needs listing. These
recovery methods may include other statutory authorities (e.g. Development
Charges Act, 1997 (D.C.A.), Municipal Act, etc.) as an offset to recovery through
the water rates;
- Forecast annual operating costs and rate-based funding requirements;
- Provide an impact assessment on the rate payers; and
- Develop a long-term water rate forecast and present findings to staff and Council
for their consideration;
In approaching this study, the following analysis is provided herein:
Chapter 1 - Introduction
Chapter 2 - Forecast Growth and Service Demands
Chapter 3 - Capital Infrastructure Needs
Chapter 4 - Capital Cost Financing Options
Chapter 5 - Operating Expenditure Forecast
Watson & Associates Economists Ltd.
PAGE 1-3
Chapter 6 - Forecast Water Rates
Chapter 7 - Recommendations
1.3 Regulatory Changes in Ontario
Resulting from the water crisis in Walkerton, significant regulatory changes have been
made in Ontario. These changes arose as a result of the Walkerton Commission and
the 93 recommendations made by the Walkerton Inquiry Part II report. Areas of
recommendation included:
- watershed management and source protection;
- quality management;
- preventative maintenance;
- research and development;
- new performance standards;
- sustainable asset management; and
- lifecycle costing.
The following sections describe significant applicable regulatory areas.
1.4 Sustainable Water and Sewage Systems Act
The Sustainable Water and Sewage Systems Act was passed on December 13, 2002.
The intent of the Act was to introduce the requirement for municipalities to undertake an
assessment of the "full cost" of providing their water and the wastewater services. In
total, there were 40 areas within the Act to which the Minister may make regulations,
however regulations were never issued. On December 31, 2012, the Sustainable Water
and Sewage Systems Act was repealed.
1.5 Safe Drinking Water Act
The Safe Drinking Water Act was passed in December 2002. The Safe Drinking Water
Act provides for 50 of the 93 Walkerton Part II recommendations. It focuses on the
administrative and operational aspects of the provision of water.
Watson & Associates Economists Ltd.
PAGE 1-4
The purposes of the Safe Drinking Water Act are to "recognize that the people of
Ontario are entitled to expect their drinking water to be safe and to provide for the
protection of human health and the prevention of drinking water health hazards through
the control and regulation of drinking water systems and drinking water testing. 2002, c.
32, s. 1."
The following is a brief summary of the key elements included in the Safe Drinking
Water Act:
- Mandatory licensing and accreditation of testing laboratories;
- New standards for treatment, distribution quality and testing;
- Mandatory operator training and certification;
- Mandatory licensing of municipal water providers;
- Stronger enforcement and compliance provisions; and
- "Standard of care" requirements for municipalities.
This legislation impacts the costs of operating a water system with the need for higher
skilled operators including increased training costs, increased reporting protocols and
requirements, continuing enhancements to quality standards and the costs to license
each water system.
1.6 Financial Plans Regulation
On August 16, 2007, the Ministry of Environment introduced O.Reg. 453/07 which
requires the preparation of financial plans for water systems (and municipalities are
encouraged to prepare plans for wastewater systems). The Ministry of Environment
has also provided a Financial Plan Guideline to assist municipalities with preparing the
plans. A brief summary of the key elements of the regulation is provided below:
- The financial plan will represent one of the key elements to obtain a Drinking
Water License.
- The plan is to be completed, approved by Council Resolution, and submitted to
the Ministry of Municipal Affairs and Housing as part of the application for
receiving approval of a water license.
- The financial plans shall be for a period of at least six years but longer planning
horizons are encouraged.
Watson & Associates Economists Ltd.
PAGE 1-5
- As the regulation is under the Safe Drinking Water Act, the preparation of the
plan is mandatory for water services and encouraged for wastewater services.
- The plan is considered a living document (i.e. can be updated if there are
significant changes to budgets) but will need to be undertaken at a minimum
every five years.
- The plans generally require the forecasting of capital, operating and reserve fund
positions, and providing detailed capital inventories. In addition, Public Sector
Accounting Board full accrual information on the system must be provided for
each year of the forecast (i.e. total non-financial assets, tangible capital asset
acquisitions, tangible capital asset construction, betterments, write-downs,
disposals, total liabilities, net debt, etc.).
- The financial plans must be made available to the public (at no charge) upon
request and be available on the Town's website. The availability of this
information must also be advertised.
In general, the financial principles of this regulation follow the intent of the Sustainable
Water and Sewage Systems Act, 2002 to move municipalities towards financial
sustainability for water services. However, many of the prescriptive requirements have
been removed (e.g. preparation of two separate documents for provincial approval,
auditor opinions, engineer certifications, etc.).
A guideline ("Towards Financially Sustainable Drinking-Water and Wastewater
Systems") has been developed to assist municipalities in understanding the Province's
direction and provides a detailed discussion on possible approaches to sustainability.
The Province's Principles of Financially Sustainable Water and Wastewater Services
are provided below:
Principle #1:
Ongoing public engagement and transparency can build support for, and
confidence in, financial plans and the system(s) to which they relate.
Principle #2:
An integrated approach to planning among water, wastewater, and storm
water systems is desirable given the inherent relationship among these
services.
Principle #3:
Revenues collected for the provision of water and wastewater services
should ultimately be used to meet the needs of those services.
Watson & Associates Economists Ltd.
PAGE 1-6
Principle #4:
Lifecycle planning with mid-course corrections is preferable to planning
over the short-term, or not planning at all.
Principle #5:
An asset management plan is a key input to the development of a
financial plan.
Principle #6:
A sustainable level of revenue allows for reliable service that meets or
exceeds environmental protection standards, while providing sufficient
resources for future rehabilitation and replacement needs.
Principle #7:
Ensuring users pay for the services they are provided leads to equitable
outcomes and can improve conservation. In general, metering and the
use of rates can help ensure users pay for services received.
Principle #8:
Financial Plans are "living" documents that require continuous
improvement. Comparing the accuracy of financial projections with
actual results can lead to improved planning in the future.
Principle #9: Financial plans benefit from the close collaboration of various groups,
including engineers, accountants, auditors, utility staff, and municipal council.
1.7 Water Opportunities Act
The Water Opportunities Act received Royal Assent on November 29, 2010. The Act
provides for the following elements:
- Foster innovative water, wastewater and stormwater technologies, services and
practices in the private and public sectors;
- Prepare water conservation plans to achieve water conservation targets
established by the regulations; and
- Prepare sustainability plans for municipal water services, municipal wastewater
services and municipal stormwater services.
With regard to the sustainability plans:
- The Bill extends from the water financial plan and requires a more detailed
review of the water financial plan and requires a full plan for wastewater and
stormwater services; and
Watson & Associates Economists Ltd.
PAGE 1-7
- Regulations (when issued) will provide performance targets for each service -
these targets may vary based on the jurisdiction of the regulated entity or the
class of entity.
The Financial Plan shall include:
- An asset management plan for the physical infrastructure;
- Financial Plan;
- For water, a water conservation plan;
- Assessment of risks that may interfere with the future delivery of the municipal
service, including, if required by the regulations, the risks posed by climate
change and a plan to deal with those risks; and
- Strategies for maintaining and improving the municipal service, including
strategies to ensure the municipal service can satisfy future demand, consider
technologies, services and practices that promote the efficient use of water and
reduce negative impacts on Ontario's water resources, and increase co-
operation with other municipal service providers.
Performance indicators will be established by service:
- May relate to the financing, operation or maintenance of a municipal service or to
any other matter in respect of which information may be required to be included
in a plan; and
- May be different for different municipal service providers or for municipal services
in different areas of the Province.
Regulations will prescribe:
- Timing;
- Contents of the plans;
- Identifying what portions of the plan will require certification;
- Public consultation process; and
- Limitations, updates, refinements, etc.
Watson & Associates Economists Ltd.
PAGE 1-8
1.8 Water Rate Calculation Methodology
Figure 1-1 illustrates the general methodology used in determining the full cost recovery
water rate forecast.
Figure 1-1
Water Rate Calculation Methodology
The methodology employed generally consists of 5 major elements.
1. Customer Demands and Consumption Forecast
As noted in section 1.1, the Town employs rate structures consisting of a monthly
base charge, and consumptive rates.
This first step in the analysis is important as it produces the current base revenue
by source for service charges and assumptions for forecasting purposes. The
customer profile forecast is modeled based on the annual growth identified in the
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PAGE 1-9
Town's 2024 D.C. Background Study. Furthermore, this level of growth is
consistent with historical growth in the Town's over the past four years (2020 to
2024).
The water consumption forecast is prepared by applying average annual
consumption estimates to future development. The forecast may adjust the base
consumption levels for anticipated water conservation based on historical trends
and industry witnessed practices. Consumption estimates are based on average
consumption levels by customer type drawn from municipal billing records over
multiple years. The non-residential consumption estimates are generally
adjusted to net out large consuming water customers that may skew anticipated
consumption levels of future growth.
2. Capital Needs Forecast
The capital needs forecast is developed to measure program/service level
adjustments, lifecycle requirements and growth-related needs. The Town
provided outstanding funding requirements to be funded from future water rates
as well as the average annual capital needs that are anticipated over the 10-year
forecast period. Capital expenditures are forecast with inflationary adjustments
based on capital costs indices.
3. Capital Funding Plan
The capital funding plan considers the potential funding sources available to
address the capital needs forecast. The sources of capital funding include rate-
based support, reserves/reserve funds, grants, and debt for program/service
level improvements. The use of rate-based funding is measured against the
revenue projections and affordability impacts. The reserve/reserve fund sources
are measured against the sustainability of these funds, relative to lifecycle
demands, revenue projections and affordability impacts. Debt financing is
typically considered for significant capital expenditures, where funding is required
beyond long-term lifecycle needs or to facilitate rate transition policies. Debt
financing is measured against the Town's debt policies and annual repayment
limits to ensure a practical and sustainable funding mix.
Watson & Associates Economists Ltd.
PAGE 1-10
4. Operating Budget Forecast
The operating budget forecast considers adjustments to the Town's base budget
reflecting program/service level changes, operating fund impacts associated with
infrastructure, and financing for capital needs. The operating expenditures are
forecast with inflationary adjustments and growth in service demand, based on
fixed and variable cost characteristics. The operating budget forecast ties the
capital funding plan and reserve/reserve fund continuity forecast to the rate-
based revenue projections. This ensures sufficient funding for both the ongoing
annual operation and maintenance of water services, as well as the capital cost
requirements to ensure service sustainability. Operating revenues are projected
to identify the rate components net of anticipated operating revenues, such as
hydrant rentals, fees and penalties, and other miscellaneous revenues.
5. Rate Forecast and Structure
The rate forecast and structure component of the analysis considers various rate
structures to recover the forecast rate-based revenue from the projected customer
demands. At this stage in the analysis the full costs of service are measured against
the customer growth and consumption demands to determine full cost recovery rates.
The analysis may consider alternative structures for minimum bill and consumptive
components of the rates, consistent with municipal policies/strategies, industry practice
and customer affordability. Providing context to the rate forecast, the results are
quantified to measure the impacts on a range of customer types and in relation to other
municipalities
Watson & Associates Economists Ltd.
Chapter 2
Forecast Growth and Service
Demands
Watson & Associates Economists Ltd.
PAGE 2-1
2. Forecast Growth and Service Demands
2.1 Current Service Demands
In preparing the demands forecast for water services, information on the number of
customer and water consumption volumes was obtained from the Town for the period of
2020-2024. As of 2024, the total number of metered water customers serviced by the
Town was 1,076. Table 2-1 provides a breakdown of the customer count by system.
Table 2-1
Metered Customers by System
Water consumption across the Town in 2024 is estimated at 283,000 m3 across the
1,076 metered customers. It is noteworthy that the consumption in 2024 was the lowest
of the 2020-2024 period.
2.2 Forecast Service Demands
In order to forecast service demand over the period of 2026-2035 the expected
development over the period had to be estimated. In determining the growth forecast
estimates, minor new connections to the water system are anticipated. There is no
growth expected to occur within the Town over the first half of the forecast period (2026-
2030), after which is it estimated that there will be an additional four water users added
to the customer base annually. This results in expected growth of 18 over the period
2026-2035. Table 2-2 provides the detailed growth forecast for the period.
Annual water demands per customer have decreased from 291 m3 per customer in
2020 to 262 m3 per customer in 2024. For the purposes of this study we have
estimated average water consumption per new water connection to be 245 m3.
Furthermore it is anticipated that average water consumption levels for existing
connections will continue to decline with water conservation efforts and that average
System
Water
Cardinal Woods
452
Island Lake
624
Total
1,076
Watson & Associates Economists Ltd.
PAGE 2-2
annual water consumption will decrease to 255 m3 per year after accounting for
conservation and growth in connections.
The forecast growth along with average consumption assumptions project total water
consumption in 2035 to be 278,900 m3.
Watson & Associates Economists Ltd.
PAGE 2-1
Table 2-2
Water Customer Forecast
Table 2-3
Water Consumption Forecast
Water Customer Forecast
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Existing
1,076
1,076
1,076
1,076
1,076
1,076
1,076
1,076
1,076
1,076
1,076
New - Growth
-
-
-
-
-
-
2
6
10
14
18
Total
1,076
1,076
1,076
1,076
1,076
1,076
1,078
1,082
1,086
1,090
1,094
Water Volume Forecast (m³)
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Existing
283,194
283,194
283,194
283,194
283,194
283,194
283,194
283,194
283,194
283,194
283,194
Adjustment for Conservation
(1,191)
(1,925)
(2,662)
(3,401)
(4,142)
(4,885)
(5,630)
(6,378)
(7,128)
(7,880)
(8,634)
New
-
-
-
-
-
-
490
1,470
2,450
3,430
4,410
Total
282,003
281,269
280,532
279,793
279,052
278,309
278,054
278,286
278,516
278,744
278,970
Watson & Associates Economists Ltd.
Chapter 3
Capital Infrastructure Needs
Watson & Associates Economists Ltd.
PAGE 3-1
3. Capital Infrastructure Needs
3.1 Introduction
Capital infrastructure needs address program/service level adjustments, lifecycle
requirements and growth-related needs. The following subsections address the
approaches to lifecycle costing and the forecast capital needs over the 2025 to 2035
period.
3.2 Overview of Lifecycle Costing
3.2.1 Definition
For many years, lifecycle costing has been used in the field of maintenance engineering
and to evaluate the advantages of using alternative materials in construction or
production design. The method has gained wider acceptance and use in the areas of
industrial decision-making and the management of physical assets.
By definition, lifecycle costs are all the costs which are incurred during the lifecycle of a
physical asset, from the time its acquisition is first considered, to the time it is taken out
of service for disposal or redeployment. The stages which the asset goes through in its
lifecycle are specification, design, manufacture (or build), installation, commissioning,
operation, maintenance and disposal. Figure 3-1 depicts these stages in a schematic
form.
Watson & Associates Economists Ltd.
PAGE 3-2
Figure 3-1
Lifecyle Costing
3.2.2 Financing Costs
This section will focus on financing mechanisms in place to fund the costs incurred
throughout the assets life.
In a municipal context, services are provided to benefit tax/rate payers. Acquisition of
assets is normally timed in relation to direct needs within the community. At times,
economies of scale or technical efficiencies will lead to oversizing an asset to
accommodate future growth within the municipality. Over the past few decades, new
financing techniques such as development charges and Municipal Act capital charges
have been employed based on the underlying principle of having tax/rate payers who
benefit directly from the service paying for that service. Operating costs which reflect
the cost of the service for that year are charged directly to all existing tax/rate payers
who have received the benefit. Operating costs are normally charged through the tax
base or user rates.
Capital expenditures are recouped through several methods, the most common being
operating budget contributions, development charges, reserves, developer contributions
and debentures.
Watson & Associates Economists Ltd.
PAGE 3-3
New construction related to growth could produce development charges, capital
charges, and developer contributions (e.g. works internal to a subdivision which are the
responsibility of the developer to construct) to fund a significant portion of projects,
where new assets are being acquired to allow growth within the municipality to continue.
As well, debentures could be used to fund such works, with the debt charge carrying
costs recouped from taxpayers in the future.
However, capital construction to replace existing infrastructure is largely not growth-
related and will therefore not yield development charges or developer contributions to
assist in financing these works. Hence, a municipality will be dependent upon
debentures, reserves and contributions from the operating budget to fund these works.
Figure 3-2 depicts the costs of an asset from its initial conception through to
replacement and then continues to follow the associated costs through to the next
replacement.
Watson & Associates Economists Ltd.
PAGE 3-4
Figure 3-2
Financing Lifecycle Costs
As referred to earlier, growth-related financing methods such as development charges
and developer contributions could be utilized to finance the growth-related component
of the new asset. These revenues are collected (indirectly) from the new homeowner
who benefits directly from the installation of this asset. Other financing methods may be
used as well to finance the non-growth-related component of this project; reserves
which have been collected from past tax/rate payers, operating budget contributions
which are collected from existing tax/rate payers, connection charges and debenturing
which will be carried by future tax/rate payers. Ongoing costs for monitoring, operating
and maintaining the asset will be charged annually to the existing tax/rate payer.
When the asset requires replacement, the sources of financing will be limited to
reserves, debentures and contributions from the operating budget. At this point, the
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PAGE 3-5
question is raised; "If the cost of replacement is to be assessed against the tax/rate
payer who benefits from the replacement of the asset, should the past tax/rate payer
pay for this cost or should future rate payers assume this cost?" If the position is taken
that the past user has used up the asset, hence they should pay for the cost of
replacement, then a charge should be assessed annually, through the life of the asset
to have funds available to replace it when the time comes. If the position is taken that
the future tax/rate payer should assume this cost, then debenturing and, possibly, a
contribution from the operating budget should be used to fund this work.
Charging for the cost of using up of an asset is the fundamental concept behind
amortization methods utilized by the private sector. This concept allows for expending
the asset as it is used up in the production process. The tracking of these costs forms
part of the product's selling price and hence end users are charged for the asset's
amortization. The same concept can be applied in a municipal setting to charge
existing users for the asset's use and set those funds aside in a reserve to finance the
cost of replacing the asset in the future.
3.2.3 Costing Methods
There are two fundamental methods of calculating the cost of the usage of an asset and
for the provision of the revenue required when the time comes to retire and replace it.
The first method is the Amortization Method. This method recognizes the reduction in
the value of the asset through wear and tear, and aging. There are two commonly used
forms of amortization: the straight-line method and the sinking fund method.
The straight-line method is calculated by taking the original cost of the asset,
subtracting its estimated salvage value (estimated value of the asset at the time it is
disposed of) and dividing this by the estimated number of years of useful life. The
reducing balance method is calculated by utilizing a fixed percentage rate and this rate
is applied annually to the undepreciated balance of the asset value.
Watson & Associates Economists Ltd.
PAGE 3-6
Figure 3-3
Straight-line Amortization Methodology
The second method of lifecycle costing is the sinking fund method. This method first
estimates the future value of the asset at the time of replacement. This is done by
inflating the original cost of the asset at an assumed annual inflation rate. A calculation
is then performed to determine annual contributions (equal or otherwise) which, when
invested, will grow with interest to equal the future replacement cost.
Figure 3-4
Sinking Fund Amortization Methodology
Watson & Associates Economists Ltd.
PAGE 3-7
A combination of the sinking fund and straight-line amortization method has been used
herein for lifecycle costing, where the straight line approach has been used for Meters
and SCADA equipment and the sinking fund method has been approximated using the
mid-range of the Canada Infrastructure Report Card reinvestment rate for water facilities
and mains. These calculations
3.3 Asset Inventory
Lifecycle contribution amounts for the infrastructure have been calculated to determine
the level of capital investment to be included in the full cost assessment and rate
forecast. Table 3-1 summarizes the current asset replacement value and long-term
annual lifecycle replacement needs, in 2025 dollars. Total annual lifecycle costs are
estimated to be $860,000 for water assets..
Table 3-1
Summary of Water Infrastructure (2025$)
3.4 Capital Forecast
10-year capital forecasts have been developed for the water system to address the
funding required to complete 10-year capital forecast for the Cardinal Woods and Island
Lake systems and general needs and studies. Over the 10-year forecast, these needs
total $17.6 million in 2025$ valuations of which the most significant share is related to
the New Composite Elevated Water Tower ($7.2 million) and the Arsenic Remediation
($7.6 million).
Facilities
18,707,666
392,861
Watermains
22,707,858
283,848
Meters
1,249,482
83,299
SCADA
1,516,877
99,136
Total
$44,181,884
$859,145
*CIRC - Canadian Infrastructure Report Card
Annual contribution target for rate study
based on Mid range end of CIRC reinvestment
Annual contribution target for rate study
based on straight line approach.
Description
Total
Replacement
Cost (2025$)
Target for
Rate Study
Comments/Notes
Watson & Associates Economists Ltd.
PAGE 3-1
Table 3-2
Water Services
Capital Forecast - Uninflated ($2025)
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Capital Expenditures
Cardinal Woods:
PRV Replace
-
-
-
-
-
-
-
-
-
-
-
CW HLPs
-
-
-
-
-
-
-
-
-
-
-
CW UV Well1 (2026) and MW4 (2032)
240,000
-
120,000
-
-
-
-
120,000
-
-
-
CW Woods Monitoring Wells
131,500
-
-
-
17,000
-
4,500
-
-
110,000
-
CW Reservoirs (Rehab)
150,000
-
-
-
150,000
-
-
-
-
-
-
CW Bypass and Distrubtion Flow Meter Replacement and Valving Upgrades
-
-
-
-
-
-
-
-
-
-
-
CW Chlorine Analyser
15,000
-
-
-
-
-
-
-
15,000
-
-
Equipment (backup generator set)
151,000
-
-
-
-
-
-
-
76,000
75,000
-
Dosing Pumps (3 at Cardinal Woods pumphouse)
15,000
-
15,000
-
-
-
-
-
-
-
-
New Composite Elevated Tower (CET) Water Tower
7,200,000
800,000
800,000
800,000
800,000
800,000
800,000
800,000
800,000
800,000
-
Remote Operated Vehicle (ROV) Reservior Inspection
-
-
-
-
-
-
-
-
-
-
-
CW Reservoir Drain, Clean, Engineering Inspection
25,000
-
-
-
-
25,000
-
-
-
-
-
CW Sample Station
-
-
-
-
-
-
-
-
-
-
-
Island Lake:
-
-
-
-
-
-
-
-
-
-
-
Coles Water Tower (Interior Liner)
50,000
50,000
-
-
-
-
-
-
-
-
-
Coles Water Tower (Paint Exterior)
100,000
100,000
-
-
-
-
-
-
-
-
-
Dosing Pumps (One at Coles pumphouse)
5,000
-
5,000
-
-
-
-
-
-
-
-
Remote Operated Vehicle (ROV) Tower Inspection
-
-
-
-
-
-
-
-
-
-
-
Coles Tower Drain, Clean, Engineering Inspection
25,000
-
-
-
-
-
25,000
-
-
-
-
General:
-
-
-
-
-
-
-
-
-
-
-
SCADA (both systems)
756,000
-
-
378,000
-
-
-
-
378,000
-
-
SCADA Licences
96,000
-
-
96,000
-
-
-
-
-
-
-
Production Wells & Pumps (Rehab Report)
350,000
30,000
25,000
30,000
30,000
60,000
35,000
35,000
35,000
35,000
35,000
Water Meters
612,000
19,000
39,000
70,000
145,000
86,000
115,000
94,000
24,000
9,000
11,000
Arsenic Remediation
7,600,000
2,300,000
2,300,000
3,000,000
-
-
-
-
-
-
-
Studies:
-
-
-
-
-
-
-
-
-
-
-
Water Rate Study
38,000
-
-
-
-
19,000
-
-
-
-
19,000
Water Financial Plan (Ontario Regulation 453/07)
12,400
-
-
-
-
6,200
-
-
-
-
6,200
Total Capital Expenditures
17,571,900
3,299,000
3,304,000
4,374,000
1,142,000
996,200
979,500
1,049,000
1,328,000
1,029,000
71,200
Description
Total
Forecast
Watson & Associates Economists Ltd.
Chapter 4
Capital Cost Financing
Options
Watson & Associates Economists Ltd.
PAGE 4-1
4. Capital Cost Financing Options
4.1 Summary of Capital Cost Financing Alternatives
Historically, the powers that municipalities have had to raise alternative revenues to
taxation to fund capital services have been restrictive. Over the past number of years,
legislative reforms have been introduced. Some of these have expanded municipal
powers (e.g. Bill 130 providing for natural person powers for fees and charges bylaws);
while others appear to restrict them (Bill 98 in 1997 providing amendments to the
D.C.A.).
The most recent Municipal Act came into force on January 1, 2003, with significant
amendments in 2006 through the Municipal Statute Law Amendment Act. Part XII of
the Act and Ontario Reg. 584/06, govern a Municipality's ability to impose fees and
charges. This Act provides municipalities with broadly defined powers and provides the
ability to impose fees for both operating and capital purposes. Under s.484 of the
Municipal Act, 2001, the Local Improvement Act was repealed with the in-force date of
the Municipal Act (January 1, 2003). The municipal powers granted under the Local
Improvement Act now fall under the jurisdiction of the Municipal Act.
The methods of capital cost recovery available to municipalities are provided as follows:
Recovery Methods
Section
Reference
- D.C.A., 1997
4.2
- Municipal Act
o Fees and Charge
o Local Improvements
4.3
- Grant Funding
4.4
- Reserves/Reserve Funds
4.5
- Debenture Financing
4.6
Watson & Associates Economists Ltd.
PAGE 4-2
4.2 Development Charges Act, 1997
The D.C.A. received royal assent on December 8, 1997, replacing the previous act,
which had been in-force since November 23, 1989.
The Province's stated intentions were to "create new construction jobs and make home
ownership more affordable" by reducing the charges and to "make municipal Council
decisions more accountable and more cost effective." The basis for this Act is to allow
municipalities to recover the growth-related capital cost of infrastructure necessary to
accommodate new growth within the municipality. The D.C.A. provides for limitations
and ceilings on services that can be included in the charges.
D.C.s imposed in the Town do not include costs for water services. As such, D.C.s
have not been included as a source of capital financing in the financial plan.
4.3 Municipal Act
Part XII of the Municipal Act provides municipalities with broad powers to impose fees
and charges via passage of a by-law. These powers, as presented in s. 391 (1), include
imposing fees or charges:
- "for services or activities provided or done by or on behalf of it;
- for costs payable by it for services or activities provided or done by or on behalf
of any other municipality or local board; and
- for the use of its property including property under its control."
Restrictions are provided to ensure that the form of the charge is not akin to a poll tax.
Any charges not paid under this authority may be added to the tax roll and collected in a
like manner. The fees and charges imposed under this part are not appealable to the
Ontario Municipal Board.
s. 391 (2) of the Municipal Act permits municipalities to impose charges to recover
capital costs, by by-law, from owners or occupants of land who receive an immediate
benefit or a benefit at some later point in time. For a by-law imposed under this section
of the Act:
Watson & Associates Economists Ltd.
PAGE 4-3
- A variety of different means could be used to establish the rate, and recovery of
the costs could be imposed by a number of methods at the discretion of Council
(i.e. lot size, frontage, number of benefiting properties, etc.);
- Rates could be imposed in respect to costs of major capital works, even though
an immediate benefit is not enjoyed;
- Non-abutting owners could be charged;
- Recovery could be authorized against existing works, where new infrastructure
was added to such works, "notwithstanding that the capital costs of existing
works has in whole or in part been paid";
- Charges on individual parcels could be deferred;
- Exemptions could be established; and
- Ontario Municipal Board approval is not required.
Under the previous Local Improvement Act:
- A variety of different types of works could be undertaken, such as watermain,
storm and sanitary sewer projects, supply of electrical light or power, bridge
construction, sidewalks, road widening and paving;
- Council could pass a by-law for undertaking such work on petition of a majority of
benefiting taxpayers, on a 2/3 vote of Council and on sanitary grounds, based on
the recommendation of the Minister of Health. The by-law was required to go to
the Ontario Municipal Board, which might hold hearings and alter the by-law,
particularly if there were objections;
- The entire cost of a work was assessed only upon the lots abutting directly on the
work, according to the extent of their respective frontages, using an equal special
rate per meter of frontage; and
- As noted, this Act was repealed as of April 1, 2003; however, Ontario Reg.
119/03 was enacted on April 19, 2003 which restores many of the previous Local
Improvement Act provisions; however, the authority is now provided under the
Municipal Act.
Additional revenues from connection charges under the Municipal Act have not been
included in this assessment.
Watson & Associates Economists Ltd.
PAGE 4-4
4.4 Grant Funding Availability
In august 2012, the Province of Ontario initiated the Municipal Infrastructure Investment
Initiative. In supporting the efforts of communities to restore and revitalize their public
infrastructure, this initiative provides one-time provincial funding to improve asset
management planning in small municipalities and local service boards. In addition,
funding will be made available for municipal infrastructure projects under this initiative.
Any municipality or local service board seeking capital funding in the future must
demonstrate how its proposed project fits within a detailed asset management plan. To
assist in defining the components of an asset management plan, the Province produced
a document entitled, "Building Together: Guide for Municipal Asset Management
Plans." This guide documents the components, information and analysis that are
required to be included in the Town's asset management plan under this initiative.
The Town will be receiving $5.0 million in grant funding towards the Arsenic
Remediation costs over the 2025 to 2028 period.
4.5 Existing Reserves/Reserve Funds
The Town has established reserves and reserve funds for water capital costs. The
established water reserves have been used in the capital funding forecast for rate-
based needs.
The total opening balance of water reserves in 2025 was $2.4 million. Table 4-1
provides a summary of the opening balances of the Town's water related reserves.
Table 4-1
Reserve Summary
4.6 Debenture Financing
Although it is not a direct method of minimizing the overall cost to the ratepayer,
dentures are used by municipalities to assist in cash flowing large capital expenditures
Reserve
Dec. 31 2024
Water
Waterworks Reserve
1,602,166
OSTAR Upgrades Reserve
845,595
Watson & Associates Economists Ltd.
PAGE 4-5
The Ministry of Municipal Affairs regulates the level of debt incurred by Ontario
municipalities, through its powers established under the Municipal Act. Ontario Reg.
403/02 provides the current rules respecting municipal debt and financial obligations.
Through the rules established under these regulations, a municipality's debt capacity is
capped at a level where no more than 25% of the municipality's own source revenue
may be allotted for servicing the debt (i.e. annual debt charges).
The capital financing plan anticipates the issuance of $9.8 million in the forecast period.
Based on the 2023 Financial Information Return for the Town, the annual debt
repayment limit (i.e., annual debt financing costs allowed within the 25% of own source
revenue cap) is $2.8 million. By 2035, the annual financing costs associated with the
$9.8 million new debt is $713,000 (based on 3.9% annual interest and a 20-year term).
As such these financing costs are well within the Town's available debt capacity.
4.7 Recommended Approach
In undertaking the Rate Study, consideration must be given to the Town's Debt
Management Policy, the sufficiency of reserves, and the affordability of recommended
rate increases while setting full cost recovery water rates.
The following table summarizes the recommended capital funding sources supporting
the capital needs forecast, for consideration by the Town of Mono.
Table 4-2
2025-2035 Water Capital Funding Program (Inflated $)
Table 4-3 provides for the full capital expenditure and funding program by year. These
capital funding plans are provided in inflated dollars.
Based on the capital funding plan identified in Table 4-3 and the 2025 water reserve
balance in Section 4.5, the water reserve continuity schedule is presented in Table 4-4.
By 2035, the reserve balance will be $558,700.
Capital Financing
2025-2035
Provincial/Federal Grants
4,962,801
Non-Growth Related Debenture Requirements
9,802,423
OSTAR Reserve Fund
845,595
Water Reserve
6,149,381
Total Capital Financing
21,760,200
Watson & Associates Economists Ltd.
PAGE 4-1
Table 4-3
Water Services
Capital Budget Forecast - Inflated $
Budget
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Capital Expenditures
Cardinal Woods:
PRV Replace
15,000
-
-
-
-
-
-
-
-
-
-
-
CW HLPs
300,000
-
-
-
-
-
-
-
-
-
-
-
CW UV Well1 (2026) and MW4 (2032)
-
294,000
-
131,000
-
-
-
-
163,000
-
-
-
CW Woods Monitoring Wells
-
189,000
-
-
-
20,000
-
6,000
-
-
163,000
-
CW Reservoirs (Rehab)
-
178,000
-
-
-
178,000
-
-
-
-
-
-
CW Bypass and Distrubtion Flow Meter Replacement and Valv
100,000
-
-
-
-
-
-
-
-
-
-
-
CW Chlorine Analyser
15,000
21,000
-
-
-
-
-
-
-
21,000
-
-
Equipment (backup generator set)
37,000
219,000
-
-
-
-
-
-
-
108,000
111,000
-
Dosing Pumps (3 at Cardinal Woods pumphouse)
-
16,000
-
16,000
-
-
-
-
-
-
-
-
New Composite Elevated Tower (CET) Water Tower
-
9,000,000
835,000
872,000
911,000
952,000
994,000
1,038,000
1,084,000
1,132,000
1,182,000
-
Remote Operated Vehicle (ROV) Reservior Inspection
5,000
-
-
-
-
-
-
-
-
-
-
-
CW Reservoir Drain, Clean, Engineering Inspection
-
31,000
-
-
-
-
31,000
-
-
-
-
-
CW Sample Station
11,000
-
-
-
-
-
-
-
-
-
-
-
Island Lake:
Coles Water Tower (Interior Liner)
-
52,000
52,000
-
-
-
-
-
-
-
-
-
Coles Water Tower (Paint Exterior)
-
104,000
104,000
-
-
-
-
-
-
-
-
-
Dosing Pumps (One at Coles pumphouse)
-
5,000
-
5,000
-
-
-
-
-
-
-
-
Remote Operated Vehicle (ROV) Tower Inspection
5,000
-
-
-
-
-
-
-
-
-
-
-
Coles Tower Drain, Clean, Engineering Inspection
-
32,000
-
-
-
-
-
32,000
-
-
-
-
General:
SCADA (both systems)
120,000
966,000
-
-
431,000
-
-
-
-
535,000
-
-
SCADA Licences
-
109,000
-
-
109,000
-
-
-
-
-
-
-
Production Wells & Pumps (Rehab Report)
90,000
451,000
31,000
27,000
34,000
36,000
75,000
45,000
47,000
50,000
52,000
54,000
Water Meters
10,000
762,000
20,000
43,000
80,000
172,000
107,000
149,000
127,000
34,000
13,000
17,000
Arsenic Remediation
200,000
8,327,000
2,402,000
2,508,000
3,417,000
-
-
-
-
-
-
-
Studies:
Water Rate Study
19,000
53,000
-
-
-
-
24,000
-
-
-
-
29,000
Water Financial Plan (Ontario Regulation 453/07)
6,200
18,000
-
-
-
-
8,000
-
-
-
-
10,000
0
-
-
-
-
-
-
-
-
-
-
-
-
Total Capital Expenditures
933,200
20,827,000
3,444,000
3,602,000
4,982,000
1,358,000
1,239,000
1,270,000
1,421,000
1,880,000
1,521,000
110,000
Capital Financing
Provincial/Federal Grants
200,000
4,762,801
1,679,000
1,679,000
1,404,801
-
-
-
-
-
-
-
Development Charges Reserve Fund
-
-
-
-
-
-
-
-
-
-
-
-
Non-Growth Related Debenture Requirements
-
11,361,461
-
1,444,470
3,286,553
1,197,181
1,041,024
1,003,158
1,058,812
1,403,077
927,184
-
Growth Related Debenture Requirements
-
-
-
-
-
-
-
-
-
-
-
-
Operating Contributions
-
-
-
-
-
-
-
-
-
-
-
-
Lifecycle Reserve Fund
-
845,595
845,595
-
-
-
-
-
-
-
-
-
Water Reserve
733,200
3,857,143
919,405
478,530
290,646
160,819
197,976
266,842
362,188
476,923
593,816
110,000
Total Capital Financing
933,200
20,827,000
3,444,000
3,602,000
4,982,000
1,358,000
1,239,000
1,270,000
1,421,000
1,880,000
1,521,000
110,000
Description
Total
Forecast
Watson & Associates Economists Ltd.
PAGE 4-2
Table 4-4
Water Reserve Continuity - Inflated $
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Opening Balance
1,602,166
883,776
213,327
-
-
-
-
-
-
-
-
Transfer from Operating
14,810
248,956
374,048
421,052
356,811
473,782
523,061
593,436
676,649
754,611
668,700
Transfer to Capital
733,200
919,405
587,375
421,052
356,811
473,782
523,061
593,436
676,649
754,611
110,000
Transfer to Operating
-
-
-
-
-
-
-
Closing Balance
883,776
213,327
-
-
-
-
-
-
-
-
558,700
Watson & Associates Economists Ltd.
Chapter 5
Operating Expenditure
Forecast
Watson & Associates Economists Ltd.
PAGE 5-1
5. Operating Expenditure Forecast
5.1 Operating Expenditures
In this report the forecasted operating budget figures for water services are based on
the Town's 2025 operating budget. The expenditures for each component of the
operating budget have been reviewed with staff to establish inflationary adjustments.
Through these discussions annual inflationary estimates were applied to each costing
group, these inflation estimates range from 2.5% for salary, wages, and benefits to 10%
for insurance costs.
Capital related annual expenditures in the forecast include annual debt repayments and
contributions to reserves and reserve funds to support the capital forecast and future
needs. While operating aspects identified above generally increase with inflation over
the period, the capital-related aspects tend to increase more specifically with the
increase in capital funding requirements.
As a result of the inflationary and capital-related expenditure increases, the operating
expenditures are anticipated to increase over the forecast period.
5.1.1 Water Services
Operating expenditures (net of transfers to reserves and debt financing costs) are
forecast to increase from $1.0 million in 2025 to $1.4 million in 2035. Debt repayment
costs are expected to increase to $713,000 in 2035 and transfers to reserves are
planned to increase from $15,000 to $668,700 by 2025 to meet the long-term average
annual lifecycle costs.
Overall, gross operating expenditures for water services are expected to increase from
$1.0 million in 2025 to $2.8 million in 235 (i.e., 10% average annual increase).
5.2 Operating Revenues
Water rate revenue from the Town's monthly service charges and volumetric rates (i.e.
$/m3 of water consumption), along with miscellaneous revenue and the repayment of
the Hwy 9 debt make up the operating revenues that are anticipated over the forecast
period. Hwy 9 debt repayments are forecast to end in 2034 after which the base charge
Watson & Associates Economists Ltd.
PAGE 5-2
and volumetric charge revenue makes up almost the entirety of the operating revenues
for the water system (i.e.,>99% of revenues)
Tables 5-1 provides the water operating budget forecast (2025-2035) which is
presented in inflated dollars.
Watson & Associates Economists Ltd.
PAGE 5-1
Table 5-1
Water Services
Operating Budget Forecast - Inflated $
Budget
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Expenditures
Operating Costs
Salaries P/T - Admin
89,300
91,500
93,800
96,100
98,500
101,000
103,500
106,100
108,800
111,500
114,300
Benefits P/T - Admin
35,717
36,600
37,500
38,400
39,400
40,400
41,400
42,400
43,500
44,600
45,700
Mileage
660
1,000
1,030
1,060
1,100
1,140
1,180
1,220
1,260
1,300
1,340
Well Hydro & Heating
101,860
107,000
112,400
118,000
123,900
130,100
136,600
143,400
150,600
158,100
166,000
Computer Operations
37,400
38,600
39,900
41,200
42,600
44,000
45,500
47,000
48,600
50,200
51,900
SCADA Operations
120,000
123,000
126,100
129,300
132,500
135,800
139,200
142,700
146,300
150,000
153,800
Material & Supplies
6,000
6,200
6,400
6,600
6,800
7,000
7,200
7,400
7,600
7,900
8,200
Legal
15,000
15,500
16,000
16,500
17,000
17,600
18,200
18,800
19,400
20,000
20,700
Prof. fees/consulting (1)
325,000
333,100
341,400
349,900
358,600
367,600
376,800
386,200
395,900
405,800
415,900
Training
1,000
3,500
3,600
3,700
3,800
3,900
4,000
4,100
4,200
4,300
4,400
Fire safety service
-
-
-
-
-
-
-
-
-
-
-
Telephone/Communications
3,900
4,000
4,100
4,200
4,300
4,400
4,500
4,600
4,800
5,000
5,200
Insurance
35,000
38,500
42,400
46,600
51,300
56,400
62,000
68,200
75,000
82,500
90,800
Other Services (Contract - Orangeville)
250,000
256,300
262,700
269,300
276,000
282,900
290,000
297,300
304,700
312,300
320,100
Lawn Maintenance
7,000
7,200
7,400
7,600
7,900
8,200
8,500
8,800
9,100
9,400
9,700
Sub Total Operating
1,027,837
1,062,000
1,094,730
1,128,460
1,163,700
1,200,440
1,238,580
1,278,220
1,319,760
1,362,900
1,408,040
Capital-Related
New Non-Growth Related Debt (Principal)
-
-
45,414
154,491
194,528
228,095
262,342
300,660
353,242
393,006
New Non-Growth Related Debt (Interest)
-
-
51,822
172,519
205,371
227,513
247,645
269,575
304,600
320,630
Transfer to Capital
-
-
-
-
-
-
-
-
-
-
-
Transfer to Capital Reserve
14,810
248,956
374,048
421,052
356,811
473,782
523,061
593,436
676,649
754,611
668,700
Sub Total Capital Related
14,810
248,956
374,048
518,288
683,821
873,681
978,669
1,103,423
1,246,884
1,412,453
1,382,336
Total Expenditures
1,042,647
1,310,956
1,468,778
1,646,748
1,847,521
2,074,121
2,217,249
2,381,643
2,566,644
2,775,353
2,790,376
Revenues
Base Charge
194,519
372,646
430,190
496,619
573,306
661,836
765,455
886,935
1,027,679
1,190,742
1,379,659
Other Revenue
1,000
1,030
1,060
1,100
1,140
1,180
1,220
1,260
1,300
1,340
1,380
Hwy 9 Loan Repayment
135,660
142,443
149,565
157,043
164,896
173,140
181,797
190,887
200,432
210,453
-
Contributions from Development Charges Reserve Fund
-
-
-
-
-
-
-
-
-
-
-
Contributions from Reserves / Reserve Funds
-
-
-
-
-
-
-
-
-
-
-
Total Operating Revenue
331,179
516,119
580,815
654,763
739,342
836,156
948,473
1,079,082
1,229,411
1,402,535
1,381,039
Water Billing Recovery - Operating
711,467
794,837
887,963
991,986
1,108,179
1,237,965
1,268,776
1,302,561
1,337,233
1,372,818
1,409,337
Forecast
Watson & Associates Economists Ltd.
Chapter 6
Forecast Water Rates
Watson & Associates Economists Ltd.
PAGE 6-1
6. Forecast Water Rates
6.1 Introduction
To summarize the analysis undertaken thus far, Chapter 3 reviewed capital
infrastructure needs within the water system and responds to the lifecycle needs of the
Town. Chapter 4 provided a review of capital financing options of which internal
sources (i.e. reserve fund transfers) will be the predominant basis for financing future
capital needs. Chapter 5 established the 10-year operating forecast of expenditures for
the Town of Mono's water systems. The following calculations will be based on the net
operating expenditures provided in Chapter 5, divided by the customers and volumes
forecast provided in Chapter 2.
The Town's current water rate structure is compromised of a monthly base charge and
an increasing block rate volumetric charge where the $ per m3 charge increases as the
customer's consumption surpasses set thresholds. For customers where a meter
reading is not allowed, the Town imposes a monthly flat rate charge.
The forecast water rates are discussed in Section 6.2, with further analysis of the
customer billing impacts in Section 6.3.
6.2 Water Rates
It is recommended that the current rate structure imposed by the Town for water
services remain in place with the exception that the increasing block rate thresholds be
revised. Based on Town direction, the billing blocks have been updated as presented in
Table 6-1.
Table 6-1
Cubic Metres per Year by Billing Block
Current
Revised
1-350
1-275
351-500
276-425
501-650
426-575
651-800
576-725
801-1,000
726-875
1,001 and over
876 & Over
Cubic Metres per Year
Watson & Associates Economists Ltd.
PAGE 6-2
It is recommended that the Town adjust the rates in July 2025, after which rate
increases would occur on January 1 of subsequent years and be of similar magnitude
each year. In July, it is recommended that the Town increase their monthly base
charge from $5.13 to $25 (387% increase), to increase revenue stability and recognize
the fixed costs of service provided. The flat rate for non-metered customers would also
be increased from $123 to $143 (16% increase). Starting January 1, 2026 the Town
would increase their monthly base charge by 15% per year, the volumetric charges for
all rate blocks by 7%, and the non-metered flat rate by 9%.
Table 6-1 displays the forecasted water rates for over the forecast period.
Watson & Associates Economists Ltd.
PAGE 6-1
Table 6-1
Water Services
Forecasted Rates
Base Charge
Jan-Jun
2025
July-Dec
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Metered Users
Monthly Base Charge
$5.13
$25.00
$28.86
$33.32
$38.46
$44.40
$51.26
$59.17
$68.31
$78.86
$91.04
$105.09
Volume Charge (per Cubic Metre)
Cubic Metres per Year
1-275
$2.44
$2.44
$2.73
$3.06
$3.43
$3.84
$4.30
$4.41
$4.52
$4.64
$4.76
$4.88
276-425
$2.87
$2.87
$3.21
$3.60
$4.03
$4.52
$5.06
$5.19
$5.32
$5.46
$5.60
$5.74
426-575
$3.10
$3.10
$3.47
$3.89
$4.36
$4.88
$5.46
$5.60
$5.75
$5.90
$6.05
$6.21
576-725
$3.30
$3.30
$3.70
$4.14
$4.64
$5.19
$5.82
$5.97
$6.12
$6.28
$6.44
$6.61
726-875
$3.50
$3.50
$3.92
$4.39
$4.92
$5.51
$6.17
$6.33
$6.49
$6.66
$6.83
$7.01
876 & Over
$3.70
$3.70
$4.14
$4.64
$5.20
$5.82
$6.52
$6.69
$6.86
$7.04
$7.22
$7.41
Unmetered Users
Flat Rate (monthly)
$123.00
$142.87
$160.87
$181.17
$204.06
$229.87
$258.98
$272.26
$286.89
$303.08
$321.04
$341.03
Watson & Associates Economists Ltd.
PAGE 6-1
6.3 Water Rates Annual Impacts
Table 6-3 summarizes the annual impact of these rate increases on the typical
residential water customer. Table 6-3 assumes average annual water consumption of
245 m3. A typical customer with these demand patterns would have an annual water bill
of $659 in 2025.
The July adjustment of rates would result in annual water bills increasing by 36.2% or
$20 per month. Beginning in 2026 the average annual increase in water bills is 13.2%
(or $154 per year) between 2026 and 2030. From 2031 to 2034 the average annual bill
would increase by 8.1% or $158 per year. The annual percentage rate increases are
greater over the first 5 years of the forecast period to accelerate water rate revenues
and mitigate additional debt financing required for major capital projects.
Watson & Associates Economists Ltd.
PAGE 6-1
Table 6-3
Water Services
Annual Customer Water Bill - Based on 245 m3 of Usage
Description
2025
Mid-2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Monthly Base Rate
$5.13
$25.00
$28.86
$33.32
$38.46
$44.40
$51.26
$59.17
$68.31
$78.86
$91.04
$105.09
Block 1 Rate
$2.44
$2.44
$2.73
$3.06
$3.43
$3.84
$4.30
$4.41
$4.52
$4.64
$4.76
$4.88
Annual Base Rate Bill
$62
$300
$346
$400
$462
$533
$615
$710
$820
$946
$1,092
$1,261
Volume
245
245
245
245
245
245
245
245
245
245
245
245
Annual Volume Bill
$598
$598
$670
$750
$840
$941
$1,054
$1,081
$1,109
$1,137
$1,167
$1,197
Total Annual Bill
$659
$898
$1,016
$1,150
$1,301
$1,473
$1,669
$1,791
$1,928
$2,083
$2,259
$2,458
% Increase - Base Rate
387.3%
15.4%
15.4%
15.4%
15.4%
15.4%
15.4%
15.4%
15.4%
15.4%
15.4%
% Increase - Volume Rate
0.0%
12.0%
12.0%
12.0%
12.0%
12.0%
2.6%
2.6%
2.6%
2.6%
2.6%
% Increase - Total Annual Bill
36.2%
13.2%
13.2%
13.2%
13.2%
13.2%
7.3%
7.7%
8.0%
8.4%
8.8%
$ Increase - Total Annual Bill
$238
$118
$134
$152
$172
$195
$122
$138
$155
$175
$199
Watson & Associates Economists Ltd.
Chapter 7
Recommendations
Watson & Associates Economists Ltd.
PAGE 7-1
7. Recommendations
Based upon the above analysis, the following recommendations are put forth for
Council's consideration
1. That Council approve the Financial Plan contained in this Rate Study and
included as Appendix B
2. That Council provide for the recovery of all water system costs through full cost
recovery rates;
3. That Council maintain the reserves and reserve funds for water services as
discussed in section 4.5; and
4. That Council direct staff to review Rate Study in five years to validate Study
results and make any necessary rate adjustments.
Appendices
Watson & Associates Economists Ltd.
PAGE A-1
Appendix A
Water Services
Table A-1
Town of Mono
Water Service
Capital Budget Forecast
Inflated $
Budget
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Capital Expenditures
Cardinal Woods:
PRV Replace
15,000
-
-
-
-
-
-
-
-
-
-
-
CW HLPs
300,000
-
-
-
-
-
-
-
-
-
-
-
CW UV Well1 (2026) and MW4 (2032)
-
294,000
-
131,000
-
-
-
-
163,000
-
-
-
CW Woods Monitoring Wells
-
189,000
-
-
-
20,000
-
6,000
-
-
163,000
-
CW Reservoirs (Rehab)
-
178,000
-
-
-
178,000
-
-
-
-
-
-
CW Bypass and Distrubtion Flow Meter Replacement and
Valving Upgrades
100,000
-
-
-
-
-
-
-
-
-
-
-
CW Chlorine Analyser
15,000
21,000
-
-
-
-
-
-
-
21,000
-
-
Equipment (backup generator set)
37,000
219,000
-
-
-
-
-
-
-
108,000
111,000
-
Dosing Pumps (3 at Cardinal Woods pumphouse)
-
16,000
-
16,000
-
-
-
-
-
-
-
-
New Composite Elevated Tower (CET) Water Tower
-
9,000,000
835,000
872,000
911,000
952,000
994,000
1,038,000
1,084,000
1,132,000
1,182,000
-
Remote Operated Vehicle (ROV) Reservior Inspection
5,000
-
-
-
-
-
-
-
-
-
-
-
CW Reservoir Drain, Clean, Engineering Inspection
-
31,000
-
-
-
-
31,000
-
-
-
-
-
CW Sample Station
11,000
-
-
-
-
-
-
-
-
-
-
-
Island Lake:
Coles Water Tower (Interior Liner)
-
52,000
52,000
-
-
-
-
-
-
-
-
-
Coles Water Tower (Paint Exterior)
-
104,000
104,000
-
-
-
-
-
-
-
-
-
Dosing Pumps (One at Coles pumphouse)
-
5,000
-
5,000
-
-
-
-
-
-
-
-
Remote Operated Vehicle (ROV) Tower Inspection
5,000
-
-
-
-
-
-
-
-
-
-
-
Coles Tower Drain, Clean, Engineering Inspection
-
32,000
-
-
-
-
-
32,000
-
-
-
-
General:
SCADA (both systems)
120,000
966,000
-
-
431,000
-
-
-
-
535,000
-
-
SCADA Licences
-
109,000
-
-
109,000
-
-
-
-
-
-
-
Production Wells & Pumps (Rehab Report)
90,000
451,000
31,000
27,000
34,000
36,000
75,000
45,000
47,000
50,000
52,000
54,000
Water Meters
10,000
762,000
20,000
43,000
80,000
172,000
107,000
149,000
127,000
34,000
13,000
17,000
Arsenic Remediation
200,000
8,327,000
2,402,000
2,508,000
3,417,000
-
-
-
-
-
-
-
Studies:
Water Rate Study
19,000
53,000
-
-
-
-
24,000
-
-
-
-
29,000
Water Financial Plan (Ontario Regulation 453/07)
6,200
18,000
-
-
-
-
8,000
-
-
-
-
10,000
Total Capital Expenditures
933,200
20,827,000
3,444,000
3,602,000
4,982,000
1,358,000
1,239,000
1,270,000
1,421,000
1,880,000
1,521,000
110,000
Capital Financing
Provincial/Federal Grants
200,000
4,762,801
1,679,000
1,679,000
1,404,801
-
-
-
-
-
-
-
Development Charges Reserve Fund
-
-
-
-
-
-
-
-
-
-
-
-
Non-Growth Related Debenture Requirements
-
9,802,423
-
1,335,625
3,156,147
1,001,189
765,218
746,939
827,564
1,203,351
766,389
-
Growth Related Debenture Requirements
-
-
-
-
-
-
-
-
-
-
-
-
Operating Contributions
-
-
-
-
-
-
-
-
-
-
-
-
Lifecycle Reserve Fund
-
845,595
845,595
-
-
-
-
-
-
-
-
-
Water Reserve
733,200
5,416,181
919,405
587,375
421,052
356,811
473,782
523,061
593,436
676,649
754,611
110,000
Total Capital Financing
933,200
20,827,000
3,444,000
3,602,000
4,982,000
1,358,000
1,239,000
1,270,000
1,421,000
1,880,000
1,521,000
110,000
Description
Total
Forecast
Watson & Associates Economists Ltd.
Table A-2
Town of Mono
Water Service
Schedule of Non-Growth Related Debenture Repayments
Inflated $
Debenture
Principal
Year
(Inflated)
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2026
-
-
-
-
-
-
-
-
-
-
2027
1,335,625
97,236
97,236
97,236
97,236
97,236
97,236
97,236
97,236
2028
3,156,147
229,774
229,774
229,774
229,774
229,774
229,774
229,774
2029
1,001,189
72,889
72,889
72,889
72,889
72,889
72,889
2030
765,218
55,709
55,709
55,709
55,709
55,709
2031
746,939
54,379
54,379
54,379
54,379
2032
827,564
60,248
60,248
60,248
2033
1,203,351
87,606
87,606
2034
766,389
55,795
2035
-
Total Annual Debt Charges
-
9,802,423
-
-
97,236
327,010
399,899
455,608
509,987
570,235
657,841
713,636
2025
Forecast
Watson & Associates Economists Ltd.
Table A-3
Town of Mono
Water Service
Waterworks Reserves/ Reserve Funds Continuity
Inflated $
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Opening Balance
1,602,166
883,776
213,327
-
-
-
-
-
-
-
-
Transfer from Operating
14,810
248,956
374,048
421,052
356,811
473,782
523,061
593,436
676,649
754,611
668,700
Transfer to Capital
733,200
919,405
587,375
421,052
356,811
473,782
523,061
593,436
676,649
754,611
110,000
Transfer to Operating
-
-
-
-
-
-
-
Closing Balance
883,776
213,327
-
-
-
-
-
-
-
-
558,700
Interest
Table A-4
Town of Mono
Water Service
OSTAR Reserve Fund Continuity
Inflated $
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Opening Balance
845,595
845,595
-
-
-
-
-
-
-
-
-
Transfer from Operating
-
-
-
-
-
-
-
-
-
-
-
Transfer to Capital
-
845,595
-
-
-
-
-
-
-
-
-
Transfer to Operating
-
-
-
-
-
-
-
-
-
-
-
Closing Balance
845,595
-
-
-
-
-
-
-
-
-
-
Interest
Watson & Associates Economists Ltd.
Table A-5
Town of Mono
Water Services
Operating Budget Forecast
Inflated $
Budget
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Expenditures
Operating Costs
Salaries P/T - Admin
89,300
91,500
93,800
96,100
98,500
101,000
103,500
106,100
108,800
111,500
114,300
Benefits P/T - Admin
35,717
36,600
37,500
38,400
39,400
40,400
41,400
42,400
43,500
44,600
45,700
Mileage
660
1,000
1,030
1,060
1,100
1,140
1,180
1,220
1,260
1,300
1,340
Well Hydro & Heating
101,860
107,000
112,400
118,000
123,900
130,100
136,600
143,400
150,600
158,100
166,000
Computer Operations
37,400
38,600
39,900
41,200
42,600
44,000
45,500
47,000
48,600
50,200
51,900
SCADA Operations
120,000
123,000
126,100
129,300
132,500
135,800
139,200
142,700
146,300
150,000
153,800
Material & Supplies
6,000
6,200
6,400
6,600
6,800
7,000
7,200
7,400
7,600
7,900
8,200
Legal
15,000
15,500
16,000
16,500
17,000
17,600
18,200
18,800
19,400
20,000
20,700
Prof. fees/consulting (1)
325,000
333,100
341,400
349,900
358,600
367,600
376,800
386,200
395,900
405,800
415,900
Training
1,000
3,500
3,600
3,700
3,800
3,900
4,000
4,100
4,200
4,300
4,400
Fire safety service
-
-
-
-
-
-
-
-
-
-
-
Telephone/Communications
3,900
4,000
4,100
4,200
4,300
4,400
4,500
4,600
4,800
5,000
5,200
Insurance
35,000
38,500
42,400
46,600
51,300
56,400
62,000
68,200
75,000
82,500
90,800
Other Services (Contract - Orangeville)
250,000
256,300
262,700
269,300
276,000
282,900
290,000
297,300
304,700
312,300
320,100
Lawn Maintenance
7,000
7,200
7,400
7,600
7,900
8,200
8,500
8,800
9,100
9,400
9,700
Sub Total Operating
1,027,837
1,062,000
1,094,730
1,128,460
1,163,700
1,200,440
1,238,580
1,278,220
1,319,760
1,362,900
1,408,040
Capital-Related
New Non-Growth Related Debt (Principal)
-
-
45,414
154,491
194,528
228,095
262,342
300,660
353,242
393,006
New Non-Growth Related Debt (Interest)
-
-
51,822
172,519
205,371
227,513
247,645
269,575
304,600
320,630
Transfer to Capital
-
-
-
-
-
-
-
-
-
-
-
Transfer to Capital Reserve
14,810
248,956
374,048
421,052
356,811
473,782
523,061
593,436
676,649
754,611
668,700
Sub Total Capital Related
14,810
248,956
374,048
518,288
683,821
873,681
978,669
1,103,423
1,246,884
1,412,453
1,382,336
Total Expenditures
1,042,647
1,310,956
1,468,778
1,646,748
1,847,521
2,074,121
2,217,249
2,381,643
2,566,644
2,775,353
2,790,376
Revenues
Base Charge
194,519
372,646
430,190
496,619
573,306
661,836
765,455
886,935
1,027,679
1,190,742
1,379,659
Other Revenue
1,000
1,030
1,060
1,100
1,140
1,180
1,220
1,260
1,300
1,340
1,380
Hwy 9 Loan Repayment
135,660
142,443
149,565
157,043
164,896
173,140
181,797
190,887
200,432
210,453
-
Contributions from Development Charges Reserve Fund
-
-
-
-
-
-
-
-
-
-
-
Contributions from Reserves / Reserve Funds
-
-
-
-
-
-
-
-
-
-
-
Total Operating Revenue
331,179
516,119
580,815
654,763
739,342
836,156
948,473
1,079,082
1,229,411
1,402,535
1,381,039
Water Billing Recovery - Operating
711,467
794,837
887,963
991,986
1,108,179
1,237,965
1,268,776
1,302,561
1,337,233
1,372,818
1,409,337
Lifecycle Reserve Contribution ($)
Water Billing Recovery - Total
711,467
794,837
887,963
991,986
1,108,179
1,237,965
1,268,776
1,302,561
1,337,233
1,372,818
1,409,337
Forecast
Watson & Associates Economists Ltd.
Watson & Associates Economists Ltd.
PAGE B-1
Appendix B
Ontario Regulation 453/07
Water Financial Plan
Watson & Associates Economists Ltd.
905-272-3600
[email protected]
May 22, 2025
Water Ontario Regulation 453/07
Financial Plan
Town of Mono
________________________
Financial Plan #107-301A
Watson & Associates Economists Ltd.
Table of Contents
Page
1.
Introduction ...................................................................................................... 1-1
1.1
Study Purpose ........................................................................................ 1-1
1.2
Background ............................................................................................. 1-1
1.2.1
Financial Plan Defined ............................................................... 1-2
1.2.2
Financial Plan Requirements - Existing System ........................ 1-2
1.2.3
Financial Plan Requirements - General .................................... 1-3
1.2.4
Public Sector Accounting Board (P.S.A.B.) Requirements ........ 1-4
2.
Sustainable Financial Planning ...................................................................... 1-1
2.1
Introduction ............................................................................................. 1-1
2.2
Water Opportunities Act, 2010 ................................................................ 1-2
2.3
Infrastructure for Jobs and Prosperity Act (I.J.P.A.), 2015 ...................... 1-3
2.4
Water Forecast ....................................................................................... 1-4
3.
Approach .......................................................................................................... 3-1
3.1
Overview ................................................................................................. 3-1
3.2
Conversion Process ................................................................................ 3-1
3.2.1
Calculate Tangible Capital Asset Balances................................ 3-1
3.2.2
Convert Statement of Operations ............................................... 3-2
3.2.3
Convert Statement of Financial Position .................................... 3-4
3.2.4
Convert Statement of Cash Flow and Net Financial
Assets/Debt ................................................................................ 3-4
3.2.5
Verification and Note Preparation .............................................. 3-6
4.
Financial Plan .................................................................................................. 4-1
4.1
Introduction ............................................................................................. 4-1
4.2
Water Financial Plan ............................................................................... 4-1
4.2.1
Statement of Financial Position (Table 4-1) ............................... 4-1
4.2.2
Statement of Operations (Table 4-2) .......................................... 4-2
4.2.3
Statement of Change in Net Financial Assets/Debt (Table
4-3) ............................................................................................ 4-3
Table of Contents (Cont'd)
Page
Watson & Associates Economists Ltd.
4.2.4
Statement of Cash Flow (Table 4-4) .......................................... 4-3
5.
Process for Financial Plan Approval and Submission to the Province ...... 5-1
6.
Recommendations .......................................................................................... 6-1
Appendix A 2025 Budget and Forecast ................................................................... A-1
Watson & Associates Economists Ltd.
List of Acronyms and Abbreviations
Acronym
Full Description of Acronym
MECP
Ministry of the Environment, Conservation and Parks
MMAH
Ministry of Municipal Affairs and Housing
O. Reg.
Ontario Regulation
P.S.A.B.
Public Sector Accounting Board
S.D.W.A.
Safe Drinking Water Act, 2002
W.O.A.
Water Opportunities Act, 2010
Report
Watson & Associates Economists Ltd.
Chapter 1
Introduction
Watson & Associates Economists Ltd.
PAGE 1-1
1. Introduction
1.1 Study Purpose
The Town of Mono (Town) retained Watson & Associates Economists Ltd. (Watson) to
prepare a Water Financial Plan as part of the five submission requirements for the
purposes of obtaining a municipal drinking water licence as per the Safe Drinking Water
Act, 2002. In general, a financial plan requires an in-depth analysis of capital and
operating needs, a review of current and future demand versus supply, and
consideration of available funding sources. This detailed financial planning and
forecasting regarding the Town's water system has been based on the Town's Budget
and Forecast, along with asset management data.
The objective of the report provided herein is to convert the findings of the 2025 to 2035
approved Budget and Forecast, as provided in the 2025 Water and Wastewater Rate
Study (2025 Rate Study), into the prescribed reporting requirements for a financial plan
as defined by Ontario Regulation (O. Reg.) 453/07. The capital and operating
expenditures and revenues forecast have been provided for the 2025 budget year and
over a 10-year forecast period 2026 to 2035 for the purposes of the financial plan. The
financial plan has been developed for the period starting in 2025, as the financial plan
must begin in the year of licence expiry in accordance with O. Reg. 453/07. This
Financial Plan will then form part of the submission for the Town's application to renew
its Municipal Drinking Water Licence.
1.2 Background
The Safe Drinking Water Act, 2002 (S.D.W.A.) was passed in December 2002 in order
to address some of the recommendations made by the Walkerton Inquiry Part II report.
One of the main requirements of the Act is the mandatory licensing of municipal water
providers. Section 31 (1) specifically states,
"No person shall,
a) establish a new municipal drinking water system or replace or carry out an
alteration to a municipal drinking water system except under the authority of and
in accordance with an approval under this Part or a drinking water works permit;
or
Watson & Associates Economists Ltd.
PAGE 1-2
b) use or operate a municipal drinking water system that was established before or
after this section comes into force except under the authority of and in
accordance with an approval under this Part or municipal drinking water licence."
In order to become licensed, a municipality must satisfy five key requirements as per
section 44 (1):
1. Obtain a drinking water works permit.
2. Acceptance of the operational plan for the system based on the Drinking Water
Quality Management Standard.
3. Accreditation of the Operating Authority.
4. Prepare and provide a financial plan.
5. Obtain permit to take water.
The preparation of a financial plan is a key requirement for licensing and as such, must
be undertaken by all water providers.
1.2.1 Financial Plan Defined
Subsection 30 of the Act provides the following definition of financial plans:
"financial plans" means financial plans that satisfy the requirements
prescribed by the Minister. 2017, c. 2, Sched. 11, s. 6 (3)
As of time of writing, the Sustainable Water and Sewage Systems Act, 2002 has been
repealed (see Section 2.2 of this report) however, the standards that it directs underpin
the specific requirements of s.30 as they are outlined in O. Reg. 453/07, and which will
be examined in detail below.
1.2.2 Financial Plan Requirements - Existing System
O. Reg. 453/07 also provides details with regard to s.30 (1) part b of the S.D.W.A. for
existing water systems. The requirements for existing systems are summarized as
follows:
- Financial plans must be approved by Council resolution (or governing body);
Watson & Associates Economists Ltd.
PAGE 1-3
- Financial plans must include a statement that the financial impacts have been
considered and apply for a minimum six-year period, commencing in the year of
licence expiry (i.e., 2025 for the Town);
- Financial plans must include detail regarding proposed or projected financial
operations itemized by total revenues, total expenses, annual surplus/deficit, and
accumulated surplus/deficit (i.e. the components of a "Statement of Operations"
as per the Public Section Accounting Board (P.S.A.B.)) for each year in which the
financial plans apply;
- Financial plans must present financial position itemized by total financial assets,
total liabilities, net debt, non-financial assets, and tangible capital assets (i.e. the
components of a "Statement of Financial Position" as per P.S.A.B.) for each year
in which the financial plans apply;
- Gross cash receipts/payments itemized by operating transactions, capital
transactions, investing transactions and financial transactions (i.e. the
components of a "Statement of Cash Flow" as per P.S.A.B.) for each year in
which the financial plans apply;
- Financial plans applicable to two or more solely owned drinking water systems
can be prepared as if they are for one drinking water system;
- Financial plans are to be made available to the public upon request and at no
charge;
- If a website is maintained, financial plans are to be made available to the public
through publication on the Internet at no charge;
- Notice of the availability of the financial plans is to be given to the public; and
- Financial plan is to be submitted to the Ministry of Municipal Affairs and Housing.
1.2.3 Financial Plan Requirements - General
Given that the requirement for a financial plan is legislated under the Act, a financial
plan is mandatory for water systems. The financial plan shall be for a forecast period of
at least six years but longer planning horizons are encouraged. The 2025 to 2035
budget and forecast included in this financial plan exceeds the legislative requirement.
The financial plan is to be completed and approved by resolution of Council or the
governing body in accordance with subsection 3 (1) 1 of O. Reg. 453/07. Confirmation
of approval of the financial plan must be submitted at the time of municipal drinking
water licence renewal (i.e., six months prior to licence expiry).
Watson & Associates Economists Ltd.
PAGE 1-4
A copy of the financial plan must be submitted to the Ministry of Municipal Affairs and
Housing (MMAH). The financial plan does not need to be submitted to the Ministry of
the Environment, Conservation, and Parks (MECP); however, the MECP may request it
in the course of review of the licence renewal. Financial plans may be amended and
additional information beyond what is prescribed can be included if deemed necessary.
The financial plan must contain on the front page, the appropriate financial plan number
as set out in Schedule A of the Municipal Drinking Water Licence.
1.2.4 Public Sector Accounting Board (P.S.A.B.) Requirements
The components of the financial plans indicated by the regulation are consistent with
the requirements for financial statement presentation as set out in section PS1201 of
the Canadian Institute of Chartered Accountants Public Sector Accounting Handbook:
"Financial statements should include a Statement of Financial Position, a
Statement of Operations, a Statement of Change in Net Debt, and a
Statement of Cash Flow."
The format required is to conform to the requirements of PS1201 and PS3150. The
financial statements are to be reported on a full accrual accounting basis. The accrual
accounting method recognizes revenues and expenses in the same period as the
activities that give rise to them regardless of when they are actually paid . Since an
exchange of cash is not necessary to report a financial transaction, the accrual method
is meant to provide a more accurate picture of financial position.
The accounting treatment of tangible capital assets is prescribed under section PS3150.
Tangible capital assets are to be capitalized to ensure an inventory of the assets owned
is recorded and to account for their ability to provide future benefits.
The Statement of Cash Flow and the Statement of Change in Net Financial Assets/Debt
are required statements. The Statement of Change in Net Financial Assets/Debt
reports on whether enough revenue was generated in a period to cover the expenses in
the period and whether sufficient resources have been generated to support current and
future activities. The Statement of Cash Flow reports on how activities were financed
for a given period providing a measure of the changes in cash for that period.
Watson & Associates Economists Ltd.
Chapter 2
Sustainable Financial Planning
Watson & Associates Economists Ltd.
PAGE 1-1
2. Sustainable Financial Planning
2.1 Introduction
In general, sustainability refers to the ability to maintain a certain position over time.
While the S.D.W.A. requires a declaration of the financial plan's sustainability, it does
not give a clear definition of what would be considered sustainable. Instead, the MECP
released a guideline ("Towards Financially Sustainable Drinking-Water and Wastewater
Systems") that provides possible approaches to achieving sustainability. The
Province's Principles of Financially Sustainable Water Services are provided below:
Principle #1: Ongoing public engagement and transparency can build support for, and
confidence in, financial plans and the system to which they relate.
Principle #2: An integrated approach to planning among water, wastewater, and storm
water systems is desirable given the inherent relationship among these
services.
Principle #3: Revenues collected for the provision of water services should ultimately
be used to meet the needs of those services.
Principle #4: Life-cycle planning with mid-course corrections is preferable to planning
over the short-term or not planning at all.
Principle #5: An asset management plan is a key input to the development of a financial
plan.
Principle #6: A sustainable level of revenue allows for reliable service that meets or
exceeds environmental protection standards, while providing sufficient
resources for future rehabilitation and replacement needs.
Principle #7: Ensuring users pay for the services they are provided leads to equitable
outcomes and can improve conservation. In general, metering and the
use of rates can help ensure users pay for services received.
Principle #8: Financial plans are "living" documents that require continuous
improvement. Comparing the accuracy of financial projections with actual
results can lead to improved planning in the future.
Watson & Associates Economists Ltd.
PAGE 1-2
Principle #9: Financial plans benefit from the close collaboration of various groups,
including engineers, accountants, auditors, utility staff, and municipal
council.
2.2 Water Opportunities Act, 2010
Since the passage of the Safe Drinking Water Act, 2002, changes and refinements to
the legislation have been introduced, including the Water Opportunities Act, 2010
(W.O.A). The W.O.A. was introduced into legislation on May 18, 2010, and received
Royal Assent on November 29, 2010.
The purposes of the W.O.A. are to foster innovative water, wastewater and stormwater
technologies, services, and practices; create opportunities for economic development
and clean-technology jobs; and conserve and sustain water resources. To achieve this,
the W.O.A. provides for the creation of performance targets (financial, operational and
maintenance related), which will vary by service type and location, and the required
submission of conservation and sustainability plans for water, wastewater, and
stormwater.
The sustainability plan in the W.O.A. expands on interim legislation for financial plans
included in O. Reg. 453/07, to include the following:
- an asset management plan for the physical infrastructure;
- financial plan;
- water conservation plan (for water service only);
- a risk assessment;
- a strategy for maintaining and improving the services; and
- additional information considered advisable.
Where a Board has jurisdiction over a service, the plan (and any plan amendments)
must be approved by the municipality in which the municipal service is provided before
submission to the Minister. The Minister may also direct preparation of joint or partially
joint plans.
Regulations (still forthcoming) will prescribe details regarding any time periods or time
limits, contents of the plans, identifying which portions of the plan will require
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PAGE 1-3
certification, the public consultation process (if required), limitations updates and
refinements.
2.3 Infrastructure for Jobs and Prosperity Act (I.J.P.A.), 2015
On June 4, 2015, the Province passed the Infrastructure for Jobs and Prosperity Act,
2015 (I.J.P.A.) which, over time, will require municipalities to undertake and implement
asset management plans for all the infrastructure they own. On December 27, 2017,
the Province of Ontario released O. Reg. 588/17 under I.J.P.A. which has three phases
that municipalities must meet. The timelines associated with the three phases were
later extended by O. Reg. 193/21 which was filed on March 15, 2021.
Every municipality in Ontario will have to prepare a strategic asset management policy
by July 1, 2019. Municipalities will be required to review their strategic asset
management policies at least every five years and make updates, as necessary. The
subsequent phases are as follows:
- Phase 1 - Asset Management Plan (by July 1, 2022):
o For core assets - Municipalities must have the following:
- Inventory of assets;
- Current levels of service, including some prescribed measures; and
- Lifecycle management strategies and associated costs to maintain
current levels of service.
- Phase 2 - Asset Management Plan (by July 1, 2024):
o Same steps as Phase 1 but for all assets.
- Phase 3 - Asset Management Plan (by July 1, 2025):
o Builds on Phase 1 and 2 by adding:
- Proposed levels of service; and
- Financial strategy that supports achieving proposed levels of service.
In relation to water (which is considered a core asset), municipalities needed to have an
asset management plan that addressed the related infrastructure by July 1, 2022
(Phase 1). O. Reg. 588/17 specifies that the municipality's asset management plan
must include the following for each asset category:
- the current levels of service being provided;
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PAGE 1-4
o determined in accordance with the following qualitative descriptions and
technical metrics and based on data from at most the two calendar years
prior to the year in which all information required under this section is
included in the asset management plan.
- the current performance of each asset category;
- a summary of the assets in the category;
- the replacement cost of the assets in the category;
- the average age of the assets in the category, determined by assessing the
average age of the components of the assets;
- the information available on the condition of the assets in the category;
- a description of the municipality's approach to assessing the condition of the
assets in the category, based on recognized and generally accepted good
engineering practices where appropriate; and
- the lifecycle activities that need to be undertaken to maintain the current levels of
service.
The Town completed an Asset Management Plan (A.M.P.) in 2024. The A.M.P.
included a review of the Town's water infrastructure. The Town will need to consider
the impacts of funding the lifecycle requirements identified in the A.M.P. during the
annual budget and forecast periods.
2.4 Water Forecast
The Town has already completed their financial planning through its 2025 Rate Study.
The purpose of this study was to address the "full cost recovery" principles identified in
the legislation noted above and provide for sufficient water rate funding to ensure
sustainable financial planning. As noted in the introduction, the forecast period
considered in the 2025 Rate Study extends to 2035.
As a result of employing this process, the 2025 Rate Study 2025 capital budget and ten-
year forecast (2026 to 2035) provides the basis for a sound financial plan for the Town's
water system by assessing:
- A detailed assessment of current and future capital needs including an analysis
of potential funding sources;
- An analysis of operating costs in order to determine how they will be impacted by
evolving infrastructure needs;
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PAGE 1-5
- A review and recommendation on rates that ensure revenues are equitable and
sufficient to meet system needs; and
- A public process that involved consultation with the main stakeholders including
the Town's staff, Council, the general public (specifically the users of the system)
and others with the aim of gaining input and collaboration on the sustainability of
the water systems.
The details of the financial plan arising from the 2025 Rate Study are contained in
Appendix A.
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Chapter 3
Approach
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PAGE 3-1
3. Approach
3.1 Overview
The Town's 2025 Rate Study, along with additional detailed information provided by
Town Staff, has been used as a starting point to prepare the Financial Plan for the
municipal water system. The water forecast is prepared on a modified cash basis;
therefore, a conversion is required in order to present a full accrual financial plan for the
purposes of this report. The conversion process used will help to establish the structure
of the financial plan along with the opening balances that will underpin the forecast.
This chapter outlines the conversion process utilized and summarizes the adjustments
made to prepare the Financial Plan for the municipal water system.
3.2 Conversion Process
The conversion from the existing modified cash basis financial plan to the full accrual
reporting format required under O. Reg. 453/07 can be summarized in the following
steps:
1. Calculate Tangible Capital Asset Balances
2. Convert Statement of Operations
3. Convert Statement of Financial Position
4. Convert Statement of Cash Flow and Net Assets/Debt
5. Verification and Note Preparation
3.2.1 Calculate Tangible Capital Asset Balances
In calculating tangible capital asset balances, existing and future purchased, developed,
and/or contributed assets will need to be considered. For existing water and assets, an
inventory has already been compiled and summarized by the Town as part of their
annual P.S.A.B. 3150 compliance processes. As required, for P.S.A.B. 3150 reporting
purposes, the asset inventory listing included historical cost (which is the original cost to
purchase, develop, or construct each asset) along with an estimated useful life for each
asset and any anticipated salvage value is recorded. The following calculations are
made to determine net book value:
- Accumulated amortization up to the year prior to the first forecast year.
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PAGE 3-2
- Amortization expense on existing assets for each year of the forecast period.
- Acquisition of new assets for each year of the forecast period.
- Disposals and related gains or losses for each year of the forecast period.
Future water capital needs have also been determined and summarized by Municipal
staff. However, these estimates only represent future assets that the Town anticipates
purchasing or constructing. At present, the Town does not anticipate any assets will be
contributed by developers and other parties (at no or partial cost to the Town). If, over
the forecast period, additional capital needs arise or contributed assets are anticipated,
the financial plan may need to be adjusted to properly account for these transactions.
Once the sequence and total asset acquisition has been determined for the forecast
period, annual amortization of these assets for each year is calculated in a similar
manner as that used for existing assets.
Once the historical cost, accumulated amortization, and amortization expenses are
calculated as described above, the total net book value of the tangible capital assets
can be determined and recorded on the Statement of Financial Position.
3.2.2 Convert Statement of Operations
A wide range of adjustments will be considered, dependent on the size and complexity
of the system, in order to convert from the cash to full accrual basis. For example, debt
repayment costs relating to the principal payment portion only need to be removed
under the accrual basis, as they no longer qualify as an expense for reporting purposes.
Principal payments are reported as a decrease in debt liability on the Statement of
Financial Position. Transfers to and from reserves are removed as these transactions
are represented by changes in cash and accumulated surplus. Finally, expenses
relating to tangible capital assets, such as amortization, write-offs, and (gain)/loss on
disposal of assets are reported on the Statement of Operations in order to capture the
allocation of the cost of these assets to operating activities over their useful lives and
therefore are added in under the accrual basis.
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PAGE 3-3
Table 3-1
Conversion Adjustments
Statement of Operations - Water
Budget
Full Accrual
Budget
2025
DR
CR
2025
Revenues
Revenues
Base Charge Revenue
194,519
194,519
Base Charge Revenue
Rate Based Revenue
711,467
711,467
Rate Based Revenue
Transfers from Reserves
-
-
Other Revenue
136,660
200,000
336,660
Other Revenue
Total Revenues
1,042,646
1,242,646
Total Revenues
Expenditures
Expenses
Operating
1,027,837
35,200
1,063,037
Operating Expenses
Capital
Transfers to Reserves
14,809
14,809
Transfers to Capital
-
-
236,061
236,061
Amortization
-
-
Loss on Disposal of Tangible Capital Assets
Total Expenditures
1,042,646
1,299,098
Total Expenses
Net Expenditures
-
(56,452)
Annual Surplus/(Deficit)
Increase (decrease) in amounts to be recovered
-
16,431,857
Accumulated Surplus/(Deficit), beginning of year
Change in Fund Balances
-
-
56,452
16,375,405
Accumulated Surplus/(Deficit), end of year
TOTAL ADJUSTMENTS
271,261
271,261
Note: The combined adjustments above should be balanced and net to $0 (i.e. Total DR = Total CR)
Modified Cash Basis
Adjustments
Accrual Basis
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PAGE 3-4
3.2.3 Convert Statement of Financial Position
Once the Statement of Operations has been converted and the net book value of
tangible capital assets has been recorded, balances for the remaining items on the
Statement of Financial Position are determined and recorded (see Table 3-2). The
opening/actual balances for the remaining accounts such as accounts receivable,
inventory, accounts payable, outstanding debt (principal only), are recorded and
classified according to the structure of the Statement of Financial Position as outlined in
PS1201.
It is acknowledged that some of the balances required on the Statement of Financial
Position will be consolidated across the Town and as such, will be difficult to isolate the
information that is relevant to water. An example of this is accounts receivable, which
may be administered centrally by the Finance Department. O. Reg. 453/07 allows for
the exclusion of these numbers if they are not known at the time of preparing the
financial plan. Please refer to the Financial Plan Notes in Chapter 4 for more details.
3.2.4 Convert Statement of Cash Flow and Net Financial Assets/Debt
The Statement of Cash Flow summarizes how the Town financed its activities or in
other words, how the costs of providing services were recovered. The statement is
derived using comparative Statement of Financial Position, the current Statement of
Operations and other available transaction data.
The Statement of Change in Net Financial Assets/Debt is a statement which reconciles
the difference between the surplus or deficit from current operations and the change in
net financial assets/debt for the year. This is significant, as net debt provides an
indication of future revenue requirements. In order to complete the Statement of Net
Financial Assets/Debt, information regarding any gains/losses on disposals of assets,
asset write-downs, acquisition/use of supplies inventory, and the acquisition use of
prepaid expenses is necessary, (if applicable). Although the Statement of Change in
Net Financial Assets/Debt is not required under O. Reg. 453/07, it has been included in
this report as a further indicator of financial viability.
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PAGE 3-5
Table 3-2
Conversion Adjustments
Statements of Financial Position - Water
Budget
Full Accrual
Budget
2025
DR
CR
2025
ASSETS
ASSETS
Financial Assets
Financial Assets
Cash
1,711,169
1,711,169
Cash
Accounts Receivable
124,732
124,732
Accounts Receivable
Total Financial Assets
1,835,901
1,835,901
Total Financial Assets
Non-Financial Assets
Prepaid Expenses
-
-
Total Non-Financial Assets
-
LIABILITIES
Liabilities
Accounts Payable & Accrued Liabilities
106,530
106,530
Accounts Payable & Accrued Liabilities
Total Liabilities
106,530
106,530
Total Liabilities
Net Assets/(Debt)
1,729,371
1,729,371
Net Financial Assets/(Debt)
Non-Financial Assets
14,681,234
35,200
14,646,034
Tangible Capital Assets
-
-
Prepaid Expenses
14,646,034
Total Non-Financial Assets
Municipal Position
Water Reserves
1,729,371
1,729,371
-
Total Municipal Position
1,729,371
16,375,405
16,375,405
Accumulated Surplus/(Deficit), end of year
TOTAL ADJUSTMENTS
16,410,605
16,410,605
Note: The combined adjustments above should be balanced and net to $0 (i.e. Total DR = Total CR)
Modified Cash Basis
Adjustments
Accrual Basis
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PAGE 3-6
3.2.5 Verification and Note Preparation
The final step in the conversion process is to ensure that all the statements created by
the previous steps are in balance. The Statement of Financial Position summarizes the
resources and obligations of the Town at a set point in time. The Statement of
Operations summarizes how these resources and obligations changed over the
reporting period. To this end, the accumulated surplus/deficit reported on the Statement
of Financial Position should equal the accumulated surplus/deficit reported on the
Statement of Operations.
The Statement of Change in Net Financial Assets/Debt and the Statement of Financial
Position are also linked in terms of reporting on net financial assets/debt. On the
Statement of Financial Position, net financial assets/debt are equal to the difference
between financial assets and liabilities and should equal net financial assets/debt as
calculated, on the Statement of Net Financial Assets/Debt.
While not part of the financial plan, the accompanying notes are important to summarize
the assumptions and estimates made in preparing the financial plan. Some of the
significant assumptions that need to be addressed within the financial plan are as
follows:
a) Opening Cash Balances - Opening cash balances are necessary to complete
the Statement of Cash Flows and balance the Statement of Financial Position.
Preferably, opening cash balances should be derived from actual information
contained within the Town's ledgers. It may not, however, be possible to extract
this information from the ledgers for water alone; therefore, a reasonable proxy
will be needed. One approach is to assume that opening cash balances equal
ending reserve and reserve fund balances from the previous year adjusted for
accrual-based transactions reflected by accounts receivable/payable balances.
The following equation outlines this approach:
Ending Reserve/Reserve Fund Balance
Plus: Ending Accounts Payable Balance
Less: Ending Accounts Receivable Balance
Equals: Approximate Ending Cash Balance
b) Amortization Expense - The method and timing of amortization should be based
on the Town's amortization policy.
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PAGE 3-7
c) Accumulated Amortization - Will be based on the culmination of accumulated
amortization expenses throughout the life of each asset however derived, along
with information on construction/acquisition date and useful life obtained from the
2025 capital budget and forecast and adjusted for 2025 projected amortization.
d) Contributed Assets - As noted earlier, contributed assets could represent a
significant part of the Town's infrastructure acquisitions. As such, a reasonable
estimate of value and timing of acquisition/donation may be required in order to
adequately capture these assets. In the case where contributed assets are
deemed to be insignificant or unknown, an assumption of "no contributed assets
within the forecast period" will be made.
e) Accumulated Surplus - The magnitude of the surplus in this area may precipitate
the need for additional explanation especially in the first year of reporting. This
Accumulated Surplus captures the historical infrastructure investment which has
not been reported in the past but has accumulated to significant levels. It also
includes all water reserve and reserve fund balances.
f) Other Revenues - Will represent the recognition of revenues such as those from
miscellaneous water charges and other minor miscellaneous revenues.
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Chapter 4
Financial Plan
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PAGE 4-1
4. Financial Plan
4.1 Introduction
The following tables provide the complete financial plan for the Town's water system. A
brief description and analysis of each table is provided below. It is important to note
that the financial plan that follows is a forward look at the financial position of the Town's
water system. It is not an audited document1 and contains various estimates as
detailed in the "Notes to the Financial Plan" section below.
Similar tables and analysis for the Town's water financial plan are included in Appendix
A.
4.2 Water Financial Plan
4.2.1 Statement of Financial Position (Table 4-1)
The Statement of Financial Position provides information that describes the assets,
liabilities, and accumulated surplus of the Town's water system. The first important
indicator is net financial assets/(debt), which is defined as the difference between
financial assets and liabilities. This indicator provides an indication of the system's
"future revenue requirement." A net financial asset position is where financial assets
are greater than liabilities and implies that the system has the resources to finance
future operations. Conversely, a net debt position implies that the future revenues
generated by the system will be needed to finance past transactions, as well as future
operations. Table 4-1 indicates that in 2025, the Town's water system will be in a net
financial asset position of approximately $1.73 million. The Town's net financial asset
position is projected to decrease to a net debt position of approximately $7.31 million by
the end of the forecast period.
Another important indicator in the Statement of Financial Position is the tangible capital
asset balance. As noted earlier, providing this information is a requirement for
municipalities as part of PS3150 compliance and is significant from a financial planning
perspective for the following reasons:
1 O. Reg. 453/07 does not require an audited financial plan.
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PAGE 4-2
g) Tangible capital assets such as water mains and treatment plants are imperative
to water service delivery.
h) These assets represent significant economic resources in terms of their historical
and replacement costs. Therefore, ongoing capital asset management is
essential to managing significant replacements and repairs.
i) The annual maintenance required by these assets has an enduring impact on
water operational budgets.
In general terms, an increase in the tangible capital asset balance indicates that assets
may have been acquired either through purchase by the Town's or donation/contribution
by a third party. A decrease in the tangible capital asset balance can indicate a
disposal, write down, or use of assets. The use of assets is usually represented by an
increase in accumulated amortization due to annual amortization expenses arising as a
result of allocating the cost of the asset to operations over the asset's useful life. Table
4-1 shows that the Town's tangible capital assets are expected to increase by
approximately $16.99 million over the forecast period. This indicates that the Town
plans to invest in tangible capital assets over the forecast period in excess of the
anticipated use of existing assets.
4.2.2 Statement of Operations (Table 4-2)
The Statement of Operations summarizes the revenues and expenses generated by the
water system for a given period. The annual surplus/deficit measures whether the
revenues generated were sufficient to cover the expenses incurred and in turn, whether
net financial assets have been maintained or depleted. Table 4-2 illustrates that the
ratio of expenses to revenues is projected to decrease over the forecast period from
105% in 2025 to 70% in 2035. As a result, annual surpluses/deficits are anticipated to
fluctuate over the forecast period with minor annual deficits projects in 2025 and 2029,
and then increasing to an annual surplus in 2035 of approximately $841,800. This is
due to a general increasing trend in the revenues anticipated over the forecast period
and the investment in tangible capital assets. It is important to note that an annual
surplus is beneficial to ensure funding is available to non-expense costs such as
tangible capital asset acquisitions, reserve/reserve fund transfers and debt principal
payments in the future.
Another important indicator in this statement is accumulated surplus/deficit. An
accumulated surplus indicates that the available net resources are sufficient to provide
future water services. An accumulated deficit indicates that resources are insufficient to
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PAGE 4-3
provide future services and that borrowing or rate increases are required to finance
annual deficits. From Table 4-2, the financial plan illustrates an increase in
accumulated surplus of approximately $7.23 million will be added to the opening
accumulated surplus of approximately $16.43 million over the forecast period. The
existing accumulated surplus, as indicated in Table 4-2, is predominately made up of
investments in tangible capital assets.
4.2.3 Statement of Change in Net Financial Assets/Debt (Table 4-3)
The Statement of Change in Net Financial Assets/Debt indicates whether revenue
generated was sufficient to cover operating and non-financial asset costs (i.e., inventory
supplies, prepaid expenses, tangible capital assets, etc.) and in so doing, explains the
difference between the annual surplus/deficit and the change in net financial
assets/debt for the period.
Table 4-3 indicates that in the years 2025 to 2035, the forecasted tangible capital asset
acquisitions are more than the annual surplus, resulting in increases in the net financial
asset balance decreasing to a net debt balance over the forecast period. This is due to
the amount of capital assets anticipated to be constructed over the forecast period.
This is further evidenced by the ratio of cumulative annual surplus before amortization
to cumulative tangible capital asset acquisitions initially increasing from 0.20 in 2025 to
0.55 in 2035, (note: a desirable ratio is 1:1 or better).
4.2.4 Statement of Cash Flow (Table 4-4)
The Statement of Cash Flow summarizes how the Town's water system is expected to
generate and use cash resources during the forecast period. The transactions that
provide/use cash are classified as operating, capital, investing, and financing activities
as shown in Table 4-4. This statement focuses on the cash aspect of these
transactions and thus is the link between cash- and accrual-based reporting. Table 4-4
indicates that cash from operations will be used to fund capital transactions (i.e.,
tangible capital asset acquisitions) over the forecast period. The financial plan projects
the cash position of the Town's water system to increase from approximately $2.44
million at the beginning of 2025 to a negative balance between the years 2027 and
2034, and then increase to a positive cash balance of approximately $370,800 by the
end of 2035. For further discussion on projected cash balances please refer to the
Notes to the Financial Plan.
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PAGE 4-4
Table 4-1
Statement of Financial Position: Water Services
UNAUDITED: For Financial Planning Purposes Only
2025-2035
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Financial Assets
Cash
1
1,711,169
166,568
-
-
-
-
-
-
-
-
370,822
Accounts Receivable
1
124,732
156,830
175,710
197,001
221,019
248,128
265,250
284,917
307,048
332,016
333,814
Total Financial Assets
1,835,901
323,398
175,710
197,001
221,019
248,128
265,250
284,917
307,048
332,016
704,636
Liabilities
Bank Indebtedness
-
-
62,247
80,042
100,408
123,709
136,878
152,436
170,262
190,759
-
Accounts Payable & Accrued Liabilities
1
106,530
110,071
113,463
116,959
120,611
124,419
128,372
132,481
136,786
141,257
145,936
Debt (Principal only)
2
-
-
1,335,625
4,446,359
5,293,057
5,863,747
6,382,591
6,947,813
7,850,504
8,263,651
7,870,645
Deferred Revenue
3
-
-
-
-
-
-
-
-
-
-
-
Total Liabilities
106,530
110,071
1,511,335
4,643,360
5,514,076
6,111,875
6,647,841
7,232,730
8,157,552
8,595,667
8,016,581
Net Financial Assets/(Debt)
1,729,371
213,327
(1,335,625)
(4,446,359)
(5,293,057)
(5,863,747)
(6,382,591)
(6,947,813)
(7,850,504)
(8,263,651)
(7,311,945)
Non-Financial Assets
Tangible Capital Assets
4
14,646,034
17,831,124
21,094,026
25,652,569
26,469,751
27,071,611
27,708,290
28,518,829
29,753,798
31,085,741
30,975,810
Total Non-Financial Assets
14,646,034
17,831,124
21,094,026
25,652,569
26,469,751
27,071,611
27,708,290
28,518,829
29,753,798
31,085,741
30,975,810
Accumulated Surplus/(Deficit)
5
16,375,405
18,044,451
19,758,401
21,206,210
21,176,694
21,207,864
21,325,699
21,571,016
21,903,294
22,822,090
23,663,865
Financial Indicators
Total Change
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
1) Increase/(Decrease) in Net Financial Assets
(9,759,707)
(718,391)
(1,516,044)
(1,548,952)
(3,110,734)
(846,698)
(570,690)
(518,844)
(565,222)
(902,691)
(413,147)
951,706
2) Increase/(Decrease) in Tangible Capital Assets
16,991,715
661,939
3,185,090
3,262,902
4,558,543
817,182
601,860
636,679
810,539
1,234,969
1,331,943
(109,931)
3) Increase/(Decrease) in Accumulated Surplus
7,232,008
(56,452)
1,669,046
1,713,950
1,447,809
(29,516)
31,170
117,835
245,317
332,278
918,796
841,775
Notes
Forecast
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PAGE 4-5
Table 4-2
Statement of Operations: Water Services
UNAUDITED: For Financial Planning Purposes Only
2025-2035
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Water Revenue
Base Charge Revenue
194,519
372,646
430,190
496,619
573,306
661,836
765,455
886,935
1,027,679
1,190,742
1,379,659
Rate Based Revenue
711,467
794,837
887,963
991,986
1,108,179
1,237,965
1,268,776
1,302,561
1,337,233
1,372,818
1,409,337
Earned Development Charges Revenue
3
-
-
-
-
-
-
-
-
-
-
-
Other Revenue
6
336,660
1,822,473
1,829,625
1,562,943
166,036
174,320
183,018
192,147
201,732
211,793
1,380
Total Revenues
1,242,646
2,989,956
3,147,778
3,051,548
1,847,521
2,074,121
2,217,249
2,381,643
2,566,644
2,775,353
2,790,376
Water Expenses
Operating Expenses
Sch. 4-1
1,063,037
1,062,000
1,094,730
1,128,460
1,163,700
1,263,440
1,270,580
1,278,220
1,319,760
1,362,900
1,447,040
Interest on Debt
2
-
-
-
51,822
172,519
205,371
227,513
247,645
269,575
304,600
320,630
Amortization
4
236,061
258,910
339,098
423,457
540,818
574,140
601,321
610,461
645,031
189,057
180,931
Total Expenses
1,299,098
1,320,910
1,433,828
1,603,739
1,877,037
2,042,951
2,099,414
2,136,326
2,234,366
1,856,557
1,948,601
Annual Surplus/(Deficit)
(56,452)
1,669,046
1,713,950
1,447,809
(29,516)
31,170
117,835
245,317
332,278
918,796
841,775
Accumulated Surplus/(Deficit), beginning of year
5
16,431,857
16,375,405
18,044,451
19,758,401
21,206,210
21,176,694
21,207,864
21,325,699
21,571,016
21,903,294
22,822,090
Accumulated Surplus/(Deficit), end of year
16,375,405
18,044,451
19,758,401
21,206,210
21,176,694
21,207,864
21,325,699
21,571,016
21,903,294
22,822,090
23,663,865
Note 5:
Accumulated Surplus/(Deficit) Reconciliation:
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Reserve Balances
Reserves: Development Charges
-
-
-
-
-
-
-
-
-
-
-
Reserves: Capital/Other
1,729,371
213,327
-
-
-
-
-
-
-
-
558,700
Total Reserves Balance
1,729,371
213,327
-
-
-
-
-
-
-
-
558,700
Less: Debt Obligations and Deferred Revenue
-
-
(1,335,625)
(4,446,359)
(5,293,057)
(5,863,747)
(6,382,591)
(6,947,813)
(7,850,504)
(8,263,651)
(7,870,645)
Add: Tangible Capital Assets
4
14,646,034
17,831,124
21,094,026
25,652,569
26,469,751
27,071,611
27,708,290
28,518,829
29,753,798
31,085,741
30,975,810
Total Ending Balance
16,375,405
18,044,451
19,758,401
21,206,210
21,176,694
21,207,864
21,325,699
21,571,016
21,903,294
22,822,090
23,663,865
Financial Indicators
Total Change
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
1) Expense to Revenue Ratio
105%
44%
46%
53%
102%
98%
95%
90%
87%
67%
70%
2) Increase/(Decrease) in Accumulated Surplus
7,232,008
(56,452)
1,669,046
1,713,950
1,447,809
(29,516)
31,170
117,835
245,317
332,278
918,796
841,775
Notes
Forecast
Watson & Associates Economists Ltd.
PAGE 4-6
Schedule 4-1
Statement of Operating Expenses: Water Services
UNAUDITED: For Financial Planning Purposes Only
2025-2035
Table 4-3
Statement of Changes in Net Financial Assets/Debt: Water Services
UNAUDITED: For Financial Planning Purposes Only
2025-2035
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Operating Expenses
Salaries P/T - Admin
89,300
91,500
93,800
96,100
98,500
101,000
103,500
106,100
108,800
111,500
114,300
Benefits P/T - Admin
35,717
36,600
37,500
38,400
39,400
40,400
41,400
42,400
43,500
44,600
45,700
Mileage
660
1,000
1,030
1,060
1,100
1,140
1,180
1,220
1,260
1,300
1,340
Well Hydro & Heating
101,860
107,000
112,400
118,000
123,900
130,100
136,600
143,400
150,600
158,100
166,000
Diesel for Generator
-
-
-
-
-
-
-
-
-
-
-
Computer Operations
37,400
38,600
39,900
41,200
42,600
44,000
45,500
47,000
48,600
50,200
51,900
SCADA Operations
120,000
123,000
126,100
129,300
132,500
135,800
139,200
142,700
146,300
150,000
153,800
Material & Supplies
6,000
6,200
6,400
6,600
6,800
7,000
7,200
7,400
7,600
7,900
8,200
Legal
15,000
15,500
16,000
16,500
17,000
17,600
18,200
18,800
19,400
20,000
20,700
Prof. fees/consulting (1)
325,000
333,100
341,400
349,900
358,600
367,600
376,800
386,200
395,900
405,800
415,900
Training
1,000
3,500
3,600
3,700
3,800
3,900
4,000
4,100
4,200
4,300
4,400
Fire safety service
-
-
-
-
-
-
-
-
-
-
-
Telephone/Communications
3,900
4,000
4,100
4,200
4,300
4,400
4,500
4,600
4,800
5,000
5,200
Insurance
35,000
38,500
42,400
46,600
51,300
56,400
62,000
68,200
75,000
82,500
90,800
Other Services (Contract - Orangeville)
250,000
256,300
262,700
269,300
276,000
282,900
290,000
297,300
304,700
312,300
320,100
Lawn Maintenance
7,000
7,200
7,400
7,600
7,900
8,200
8,500
8,800
9,100
9,400
9,700
Non TCA - Expenses from Capital Budget
7
35,200
-
-
-
-
63,000
32,000
-
-
-
39,000
TOTAL OPERATING EXPENSES
1,063,037
1,062,000
1,094,730
1,128,460
1,163,700
1,263,440
1,270,580
1,278,220
1,319,760
1,362,900
1,447,040
Forecast
Notes
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Annual Surplus/(Deficit)
(56,452)
1,669,046
1,713,950
1,447,809
(29,516)
31,170
117,835
245,317
332,278
918,796
841,775
Less: Acquisition of Tangible Capital Assets
4
(898,000)
(3,444,000)
(3,602,000)
(4,982,000)
(1,358,000)
(1,176,000)
(1,238,000)
(1,421,000)
(1,880,000)
(1,521,000)
(71,000)
Add: Amortization of Tangible Capital Assets
4
236,061
258,910
339,098
423,457
540,818
574,140
601,321
610,461
645,031
189,057
180,931
Sub-total
(661,939)
(3,185,090)
(3,262,902)
(4,558,543)
(817,182)
(601,860)
(636,679)
(810,539)
(1,234,969)
(1,331,943)
109,931
Less: Acquisition of Prepaid Expenses
-
-
-
-
-
-
-
-
-
-
-
Add: Use of Prepaid Expenses
-
-
-
-
-
-
-
-
-
-
-
Sub-total
-
-
-
-
-
-
-
-
-
-
-
Increase/(Decrease) in Net Financial Assets/(Net Debt)
(718,391)
(1,516,044)
(1,548,952)
(3,110,734)
(846,698)
(570,690)
(518,844)
(565,222)
(902,691)
(413,147)
951,706
Net Financial Assets/(Net Debt), beginning of year
2,447,762
1,729,371
213,327
(1,335,625)
(4,446,359)
(5,293,057)
(5,863,747)
(6,382,591)
(6,947,813)
(7,850,504)
(8,263,651)
Net Financial Assets/(Net Debt), end of year
1,729,371
213,327
(1,335,625)
(4,446,359)
(5,293,057)
(5,863,747)
(6,382,591)
(6,947,813)
(7,850,504)
(8,263,651)
(7,311,945)
Financial Indicators
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
1) Acquisition of Tangible Capital Assets (Cumulative)
898,000
4,342,000
7,944,000
12,926,000
14,284,000
15,460,000
16,698,000
18,119,000
19,999,000
21,520,000
21,591,000
2) Annual Surplus/Deficit before Amortization (Cumulative)
179,609
2,107,565
4,160,613
6,031,879
6,543,181
7,148,491
7,867,647
8,723,425
9,700,734
10,808,587
11,831,293
3) Ratio of Annual Surplus before Amortization to Acquisition of TCA's (Cumulative)
0.20
0.49
0.52
0.47
0.46
0.46
0.47
0.48
0.49
0.50
0.55
Notes
Forecast
Watson & Associates Economists Ltd.
PAGE 4-7
Table 4-4
Statement of Cash Flow - Indirect Method: Water Services
UNAUDITED: For Financial Planning Purposes Only
2025-2035
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Operating Transactions
Annual Surplus/Deficit
(56,452)
1,669,046
1,713,950
1,447,809
(29,516)
31,170
117,835
245,317
332,278
918,796
841,775
Add: Amortization of TCA's
4
236,061
258,910
339,098
423,457
540,818
574,140
601,321
610,461
645,031
189,057
180,931
Change in A/R (Increase)/Decrease
(13,057)
(32,098)
(18,880)
(21,291)
(24,018)
(27,109)
(17,122)
(19,667)
(22,131)
(24,968)
(1,798)
Change in A/P Increase/(Decrease)
7,299
3,541
3,392
3,496
3,652
3,808
3,953
4,109
4,305
4,471
4,679
Cash Provided by Operating Transactions
173,851
1,899,399
2,037,560
1,853,472
490,936
582,009
705,987
840,220
959,483
1,087,356
1,025,587
Capital Transactions
Less: Cash Used to acquire Tangible Capital Assets
4
(898,000)
(3,444,000)
(3,602,000)
(4,982,000)
(1,358,000)
(1,176,000)
(1,238,000)
(1,421,000)
(1,880,000)
(1,521,000)
(71,000)
Cash Applied to Capital Transactions
(898,000)
(3,444,000)
(3,602,000)
(4,982,000)
(1,358,000)
(1,176,000)
(1,238,000)
(1,421,000)
(1,880,000)
(1,521,000)
(71,000)
Investing Transactions
Proceeds from Investments
-
-
-
-
-
-
-
-
-
-
-
Less: Cash Used to Acquire Investments
-
-
-
-
-
-
-
-
-
-
-
Cash Provided by (applied to) Investing Transactions
-
-
-
-
-
-
-
-
-
-
-
Financing Transactions
Proceeds from Debt Issue
2
-
-
1,335,625
3,156,147
1,001,189
765,218
746,939
827,564
1,203,351
766,389
-
Less: Debt Repayment (Principal only)
2
-
-
-
(45,414)
(154,491)
(194,528)
(228,095)
(262,342)
(300,660)
(353,242)
(393,006)
Cash Applied to Financing Transactions
-
-
1,335,625
3,110,733
846,698
570,690
518,844
565,222
902,691
413,147
(393,006)
Increase in Cash and Cash Equivalents
(724,149)
(1,544,601)
(228,815)
(17,795)
(20,366)
(23,301)
(13,169)
(15,558)
(17,826)
(20,497)
561,581
Cash and Cash Equivalents, beginning of year
1
2,435,318
1,711,169
166,568
(62,247)
(80,042)
(100,408)
(123,709)
(136,878)
(152,436)
(170,262)
(190,759)
Cash and Cash Equivalents, end of year
1
1,711,169
166,568
(62,247)
(80,042)
(100,408)
(123,709)
(136,878)
(152,436)
(170,262)
(190,759)
370,822
Notes
Forecast
Watson & Associates Economists Ltd.
PAGE 4-8
Water
Notes to Financial Plan
The financial plan format as outlined in Chapter 4 closely approximates the full accrual
format used by municipalities (2009 onward) on their audited financial statements.
However, the financial plan is not an audited document and contains various estimates.
In this regard, Section 3 (2) of O. Reg. 453/07 states the following:
"Each of the following sub-subparagraphs applies only if the information
referred to in the sub-subparagraph is known to the owner at the time the
financial plans are prepared:
1. Sub-subparagraphs 4 a A, B and C of subsection (1)
2. Sub-subparagraphs 4 iii A, C, E and F of subsection (1)."
The information referred to in sub-subparagraphs 4 if A, B and C of subsection (1)
includes:
A. Total financial assets (i.e., cash and receivables);
B. Total liabilities (i.e., payables, debt, and deferred revenue);
C. Net debt (i.e., the difference between A and B above).
The information referred to in sub-subparagraphs 4 iii A, C, E and F of subsection (1)
includes:
A. Operating transactions are cash received from revenues, cash paid for operating
expenses and finance charges.
B. Investing transactions that are acquisitions and disposal of investments.
C. Change in cash and cash equivalents during the year.
D. Cash and cash equivalents at the beginning and end of the year.
In order to show a balanced financial plan in a full accrual format for the Town, some of
the items listed above have been estimated given that the Town does not maintain all
financial asset and liability data separately for water. Usually, this type of data is
combined with the financial assets and liabilities of other departments and services
given that there is not a current obligation to disclose this data separately (as there is
with revenue and expenses).
Watson & Associates Economists Ltd.
PAGE 4-9
The assumptions used have been documented below:
1.
Cash, Receivables and Payables
It is assumed that the opening cash balances required to complete the financial
plan are equal to:
Ending Reserve/Reserve Fund Balance
Plus: Ending Accounts Payable Balance
Less: Ending Accounts Receivable Balance
Equals: Approximate Ending Cash Balance
For the Town, receivable and payable balances were estimated for each year of
the forecast based on the following factors:
a) Receivables: Based on historical levels of water receivables (provided by
Municipal staff) as a percentage of annual water revenue earned (as per 2022
to 2024 actuals provided by Town staff); and
b) Payables: Based on historical levels of municipal-wide payables as a
percentage of annual municipal-wide expenses incurred (as per the 2022,
and 2023, Financial Information Returns) and actual data for 2024, as
provided by Town Staff.
2.
Debt
There is no outstanding water related debt anticipated at the beginning of 2025.
Additional debentures are anticipated to be required over the remainder of the
forecast period to assist in funding the growth-related capital infrastructure
needs. Principal repayments over the forecast period are scheduled as follows:
Year
Principal
Payments
2025
-
2026
-
2027
-
2028
45,414
2029
154,491
2030
194,528
2031
228,095
2032
262,342
2033
300,660
2034
353,242
2035
393,006
Total
$1,931,778
Watson & Associates Economists Ltd.
PAGE 4-10
For financial reporting purposes, debt principal payments represent a decrease in
debt liability and the interest payments represent a current year operating
expense.
3.
Deferred Revenue
Deferred revenue is typically made up of water development charge, connection
charge reserve, Canada Community-Building Fund (previously Federal gas tax)
fund balances which are considered to be a liability for financial reporting
purposes until the funds are used to emplace the works for which they have been
collected.
The Town does not collect water development charges currently or use funding
from the Canada Community-Building Fund (C.C.B.F) for water services.
4.
Tangible Capital Assets
- Opening net book value of tangible capital assets includes water related
assets in the following categories:
i.
Land and Land Improvements;
ii.
Water Facilities;
iii.
Water Meters;
iv.
Water Hydrants;
v.
Water Valves;
vi.
Machinery and Equipment; and
vii.
Watermains.
- Given the planned asset replacement forecast in the 2025 Rate Study, useful
life on acquisitions is assumed to be equal to the weighted average useful
life for all assets on hand in each respective asset category.
- Amortization is calculated based on the straight-line approach with no
amortization in the year of acquisition or construction.
- Write-offs are assumed to equal $0 for each year in the forecast period.
- Tangible capital assets are shown on a net basis. It is assumed that
disposals occur when the asset is being replaced. To calculate the value of
each asset disposal, the replacement value (of each new asset that has
been identified as a "replacement") has been deflated (by weighted average
useful life for all assets on hand in the respective asset category) to an
Watson & Associates Economists Ltd.
PAGE 4-11
estimated historical cost. This figure was used to calculate disposals only.
Future assets are disposed of when fully amortized
- Gains/losses on disposal are assumed to be $0 (it is assumed that historical
cost is equal to accumulated amortization for all disposals).
- Residual value is assumed to be $0 for all assets contained within the
forecast period.
- Contributed Assets, as described in Section 3.2.1, are deemed to be
insignificant/ unknown during the forecast period and are therefore assumed
to be $0.
- The Town is unaware of any lead service piping in the municipal water
system, however, if during asset replacements, lead services are found, they
would be replaced ass part of the asset management projects underway.
Watson & Associates Economists Ltd.
PAGE 4-12
The balance of tangible capital assets is summarized as follows:
Asset Historical Cost
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Opening Tangible Capital Asset Balance
20,389,084
20,995,712
23,388,487
25,850,762
29,175,559
29,977,110
30,652,898
31,311,939
32,054,682
33,133,538
34,066,157
Acquisitions
898,000
3,444,000
3,602,000
4,982,000
1,358,000
1,176,000
1,238,000
1,421,000
1,880,000
1,521,000
71,000
Disposals
291,372
1,051,225
1,139,725
1,657,203
556,449
500,212
578,959
678,257
801,144
588,381
22,541
Closing Tangible Capital Asset Balance
20,995,712
23,388,487
25,850,762
29,175,559
29,977,110
30,652,898
31,311,939
32,054,682
33,133,538
34,066,157
34,114,616
Opening Accumulated Amortization
6,404,989
6,349,678
5,557,363
4,756,736
3,522,990
3,507,359
3,581,287
3,603,649
3,535,853
3,379,740
2,980,416
Amortization Expense
236,061
258,910
339,098
423,457
540,818
574,140
601,321
610,461
645,031
189,057
180,931
Amortization on Disposal
291,372
1,051,225
1,139,725
1,657,203
556,449
500,212
578,959
678,257
801,144
588,381
22,541
Ending Accumulated Amortization
6,349,678
5,557,363
4,756,736
3,522,990
3,507,359
3,581,287
3,603,649
3,535,853
3,379,740
2,980,416
3,138,806
Net Book Value
14,646,034
17,831,124
21,094,026
25,652,569
26,469,751
27,071,611
27,708,290
28,518,829
29,753,798
31,085,741
30,975,810
Watson & Associates Economists Ltd.
PAGE 4-13
5.
Accumulated Surplus
Opening accumulated surplus for the forecast period is reconciled as follows:
The accumulated surplus reconciliation for all years within the forecast period is
contained in Table 4-2.
6.
Other Revenue
Other revenue consists of miscellaneous revenues which have been inflated over
the forecast period by approximately 3% annually. Outstanding loan repayment
recoveries from landowners are included through to 2034.
7.
Operating Expenses
Capital expenditures for items not meeting the definition of tangible capital assets
have been reclassified as operating expenses and have been expensed in the
year in which they occur.
Water
2025 Opening
Accumulated
Surplus
Reserve Balances
Reserves: Capital/Other
2,447,762
Total Reserves Balance
$2,447,762
Add: Tangible Capital Assets
13,984,095
Total Opening Balance
$16,431,857
Watson & Associates Economists Ltd.
Chapter 5
Process for Financial Plan
Approval and Submission to
the Province
Watson & Associates Economists Ltd.
PAGE 5-1
5. Process for Financial Plan Approval and
Submission to the Province
As mentioned in section 1.2, preparation, and approval of a financial plan for water
assets that meets the requirements of the Act is mandatory for municipal water
providers. Proof of the plan preparation and approval is a key submission requirement
for municipal drinking water licensing and, upon completion, must be submitted to the
MECP. The process established for plan approval, public circulation and filing is set out
in O. Reg. 453/07 and can be summarized as follows:
1. The financial plan must be approved by resolution of Council of the municipality
who owns the drinking water system or the governing body of the owner. (O.
Reg. 453/07, section 3 (1) 1).
2. The owner of the drinking water system must provide notice advertising the
availability of the financial plan. The plans will be made available to the public
upon request and without charge. The plans must also be made available to the
public on the municipality's website. (O. Reg. 453/07, section 3 (1) 5).
3. The owner of the drinking water system must provide a copy of the financial plan
to the Director of Policy Branch, Ministry of Municipal Affairs and Housing. (O.
Reg. 453/07, section 3 (1) 6).
4. The owner of the drinking water system must provide proof satisfactory to the
Director that the financial plans for the system satisfy the requirements under the
Safe Drinking Water Act, 2002. (S.D.W.A. section 32 (5) 2. ii.).
Watson & Associates Economists Ltd.
Chapter 6
Recommendations
Watson & Associates Economists Ltd.
PAGE 6-1
6. Recommendations
This report presents the water financial plan for the Town in accordance with the
mandatory reporting formats for water systems as detailed in O. Reg. 453/07. It is
important to note that while mandatory for water, the financial plan is provided for
Council's interest and approval however, for decision making purposes, it may be more
informative to rely on the information contained within the Town's operating and capital
budgets. Nevertheless, Council is required to pass certain resolutions with regard to
this plan and regulations, and it is recommended that:
1. The Town of Mono Water Financial Plan prepared by Watson & Associates
Economists Ltd. dated May 22, 2025, be approved.
2. Notice of availability of the Financial Plan be advertised.
3. The Financial Plan, dated May 22, 2025, be submitted to the Ministry of
Municipal Affairs and Housing. (O. Reg. 453/07, Section 3 (1) 6).
4. The Council Resolution approving the Financial Plan be submitted to the Ministry
of the Environment, Conservation, and Parks satisfying the requirements under
the Safe Drinking Water Act, 2002. (S.D.W.A, Section 32 (5) 2 ii)).
Watson & Associates Economists Ltd.
PAGE A-1
Appendix A
2025 Budget and Forecast
Watson & Associates Economists Ltd.
PAGE A-2
Table A-1
Town of Mono
Water Service
Capital Budget Forecast (Uninflated $)
Budget
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Capital Expenditures
Cardinal Woods:
PRV Replace
15,000
-
-
-
-
-
-
-
-
-
-
-
CW HLPs
300,000
-
-
-
-
-
-
-
-
-
-
-
CW UV Well1 (2026) and MW4 (2032)
-
240,000
-
120,000
-
-
-
-
120,000
-
-
-
CW Woods Monitoring Wells
-
131,500
-
-
-
17,000
-
4,500
-
-
110,000
-
CW Reservoirs (Rehab)
-
150,000
-
-
-
150,000
-
-
-
-
-
-
CW Bypass and Distrubtion Flow Meter Replacement and Valving
Upgrades
100,000
-
-
-
-
-
-
-
-
-
-
-
CW Chlorine Analyser
15,000
15,000
-
-
-
-
-
-
-
15,000
-
-
Equipment (backup generator set)
37,000
151,000
-
-
-
-
-
-
-
76,000
75,000
-
Dosing Pumps (3 at Cardinal Woods pumphouse)
-
15,000
-
15,000
-
-
-
-
-
-
-
-
New Composite Elevated Tower (CET) Water Tower
-
7,200,000
800,000
800,000
800,000
800,000
800,000
800,000
800,000
800,000
800,000
-
Remote Operated Vehicle (ROV) Reservior Inspection
5,000
-
-
-
-
-
-
-
-
-
-
-
CW Reservoir Drain, Clean, Engineering Inspection
-
25,000
-
-
-
-
25,000
-
-
-
-
-
CW Sample Station
11,000
-
-
-
-
-
-
-
-
-
-
-
Island Lake:
-
-
-
-
-
-
-
-
-
-
-
-
Coles Water Tower (Interior Liner)
-
50,000
50,000
-
-
-
-
-
-
-
-
-
Coles Water Tower (Paint Exterior)
-
100,000
100,000
-
-
-
-
-
-
-
-
-
Dosing Pumps (One at Coles pumphouse)
-
5,000
-
5,000
-
-
-
-
-
-
-
-
Remote Operated Vehicle (ROV) Tower Inspection
5,000
-
-
-
-
-
-
-
-
-
-
-
Coles Tower Drain, Clean, Engineering Inspection
-
25,000
-
-
-
-
-
25,000
-
-
-
-
General:
-
-
-
-
-
-
-
-
-
-
-
-
SCADA (both systems)
120,000
756,000
-
-
378,000
-
-
-
-
378,000
-
-
SCADA Licences
-
96,000
-
-
96,000
-
-
-
-
-
-
-
Production Wells & Pumps (Rehab Report)
90,000
350,000
30,000
25,000
30,000
30,000
60,000
35,000
35,000
35,000
35,000
35,000
Water Meters
10,000
612,000
19,000
39,000
70,000
145,000
86,000
115,000
94,000
24,000
9,000
11,000
Arsenic Remediation
200,000
7,600,000
2,300,000
2,300,000
3,000,000
-
-
-
-
-
-
-
Studies:
-
-
-
-
-
-
-
-
-
-
-
-
Water Rate Study
19,000
38,000
-
-
-
-
19,000
-
-
-
-
19,000
Water Financial Plan (Ontario Regulation 453/07)
6,200
12,400
-
-
-
-
6,200
-
-
-
-
6,200
Total Capital Expenditures
933,200
17,571,900
3,299,000
3,304,000
4,374,000
1,142,000
996,200
979,500
1,049,000
1,328,000
1,029,000
71,200
Total
Description
Forecast
Watson & Associates Economists Ltd.
PAGE A-3
Table A-2
Town of Mono
Water Service
Capital Budget Forecast (Inflated $)
Budget
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Capital Expenditures
Cardinal Woods:
PRV Replace
15,000
-
-
-
-
-
-
-
-
-
-
-
CW HLPs
300,000
-
-
-
-
-
-
-
-
-
-
-
CW UV Well1 (2026) and MW4 (2032)
-
294,000
-
131,000
-
-
-
-
163,000
-
-
-
CW Woods Monitoring Wells
-
189,000
-
-
-
20,000
-
6,000
-
-
163,000
-
CW Reservoirs (Rehab)
-
178,000
-
-
-
178,000
-
-
-
-
-
-
CW Bypass and Distrubtion Flow Meter Replacement
and Valving Upgrades
100,000
-
-
-
-
-
-
-
-
-
-
-
CW Chlorine Analyser
15,000
21,000
-
-
-
-
-
-
-
21,000
-
-
Equipment (backup generator set)
37,000
219,000
-
-
-
-
-
-
-
108,000
111,000
-
Dosing Pumps (3 at Cardinal Woods pumphouse)
-
16,000
-
16,000
-
-
-
-
-
-
-
-
New Composite Elevated Tower (CET) Water Tower
-
9,000,000
835,000
872,000
911,000
952,000
994,000
1,038,000
1,084,000
1,132,000
1,182,000
-
Remote Operated Vehicle (ROV) Reservior Inspection
5,000
-
-
-
-
-
-
-
-
-
-
-
CW Reservoir Drain, Clean, Engineering Inspection
-
31,000
-
-
-
-
31,000
-
-
-
-
-
CW Sample Station
11,000
-
-
-
-
-
-
-
-
-
-
-
Island Lake:
Coles Water Tower (Interior Liner)
-
52,000
52,000
-
-
-
-
-
-
-
-
-
Coles Water Tower (Paint Exterior)
-
104,000
104,000
-
-
-
-
-
-
-
-
-
Dosing Pumps (One at Coles pumphouse)
-
5,000
-
5,000
-
-
-
-
-
-
-
-
Remote Operated Vehicle (ROV) Tower Inspection
5,000
-
-
-
-
-
-
-
-
-
-
-
Coles Tower Drain, Clean, Engineering Inspection
-
32,000
-
-
-
-
-
32,000
-
-
-
-
General:
SCADA (both systems)
120,000
966,000
-
-
431,000
-
-
-
-
535,000
-
-
SCADA Licences
-
109,000
-
-
109,000
-
-
-
-
-
-
-
Production Wells & Pumps (Rehab Report)
90,000
451,000
31,000
27,000
34,000
36,000
75,000
45,000
47,000
50,000
52,000
54,000
Water Meters
10,000
762,000
20,000
43,000
80,000
172,000
107,000
149,000
127,000
34,000
13,000
17,000
Arsenic Remediation
200,000
8,327,000
2,402,000
2,508,000
3,417,000
-
-
-
-
-
-
-
Studies:
Water Rate Study
19,000
53,000
-
-
-
-
24,000
-
-
-
-
29,000
Water Financial Plan (Ontario Regulation 453/07)
6,200
18,000
-
-
-
-
8,000
-
-
-
-
10,000
Total Capital Expenditures
933,200
20,827,000
3,444,000
3,602,000
4,982,000
1,358,000
1,239,000
1,270,000
1,421,000
1,880,000
1,521,000
110,000
Capital Financing
Provincial/Federal Grants
200,000
4,762,801
1,679,000
1,679,000
1,404,801
-
-
-
-
-
-
-
Development Charges Reserve Fund
-
-
-
-
-
-
-
-
-
-
-
-
Non-Growth Related Debenture Requirements
-
11,361,461
-
1,444,470
3,286,553
1,197,181
1,041,024
1,003,158
1,058,812
1,403,077
927,184
-
Growth Related Debenture Requirements
-
-
-
-
-
-
-
-
-
-
-
-
Operating Contributions
-
-
-
-
-
-
-
-
-
-
-
-
Lifecycle Reserve Fund
-
845,595
845,595
-
-
-
-
-
-
-
-
-
Water Reserve
733,200
3,857,143
919,405
478,530
290,646
160,819
197,976
266,842
362,188
476,923
593,816
110,000
Total Capital Financing
933,200
20,827,000
3,444,000
3,602,000
4,982,000
1,358,000
1,239,000
1,270,000
1,421,000
1,880,000
1,521,000
110,000
Description
Total
Forecast
Watson & Associates Economists Ltd.
PAGE A-4
Table A-3
Town of Mono
Water Service
Schedule of Non-Growth-Related Debenture Repayments (Inflated $)
Table A-4
Town of Mono
Water Service
Water Reserve Continuity (Inflated $)
Debenture
Principal
Year
(Inflated)
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2026
-
-
-
-
-
-
-
-
-
-
2027
1,335,625
97,236
97,236
97,236
97,236
97,236
97,236
97,236
97,236
2028
3,156,147
229,774
229,774
229,774
229,774
229,774
229,774
229,774
2029
1,001,189
72,889
72,889
72,889
72,889
72,889
72,889
2030
765,218
55,709
55,709
55,709
55,709
55,709
2031
746,939
54,379
54,379
54,379
54,379
2032
827,564
60,248
60,248
60,248
2033
1,203,351
87,606
87,606
2034
766,389
55,795
2035
-
Total Annual Debt Charges
-
9,802,423
-
-
97,236
327,010
399,899
455,608
509,987
570,235
657,841
713,636
2025
Forecast
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Opening Balance
1,602,166
883,776
213,327
-
-
-
-
-
-
-
-
Transfer from Operating
14,810
248,956
374,048
421,052
356,811
473,782
523,061
593,436
676,649
754,611
668,700
Transfer to Capital
733,200
919,405
587,375
421,052
356,811
473,782
523,061
593,436
676,649
754,611
110,000
Transfer to Operating
-
-
-
-
-
-
-
Closing Balance
883,776
213,327
-
-
-
-
-
-
-
-
558,700
Watson & Associates Economists Ltd.
PAGE A-5
Table A-5
Town of Mono
Water Service
OSTAR Reserve Continuity (Inflated $)
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Opening Balance
845,595
845,595
-
-
-
-
-
-
-
-
-
Transfer from Operating
-
-
-
-
-
-
-
-
-
-
-
Transfer to Capital
-
845,595
-
-
-
-
-
-
-
-
-
Transfer to Operating
-
-
-
-
-
-
-
-
-
-
-
Closing Balance
845,595
-
-
-
-
-
-
-
-
-
-
Watson & Associates Economists Ltd.
PAGE A-6
Table A-6
Town of Mono
Water Service
Operating Budget Forecast (Inflated $)
Budget
Description
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Expenditures
Operating Costs
Salaries P/T - Admin
89,300
91,500
93,800
96,100
98,500
101,000
103,500
106,100
108,800
111,500
114,300
Benefits P/T - Admin
35,717
36,600
37,500
38,400
39,400
40,400
41,400
42,400
43,500
44,600
45,700
Mileage
660
1,000
1,030
1,060
1,100
1,140
1,180
1,220
1,260
1,300
1,340
Well Hydro & Heating
101,860
107,000
112,400
118,000
123,900
130,100
136,600
143,400
150,600
158,100
166,000
Computer Operations
37,400
38,600
39,900
41,200
42,600
44,000
45,500
47,000
48,600
50,200
51,900
SCADA Operations
120,000
123,000
126,100
129,300
132,500
135,800
139,200
142,700
146,300
150,000
153,800
Material & Supplies
6,000
6,200
6,400
6,600
6,800
7,000
7,200
7,400
7,600
7,900
8,200
Legal
15,000
15,500
16,000
16,500
17,000
17,600
18,200
18,800
19,400
20,000
20,700
Prof. fees/consulting (1)
325,000
333,100
341,400
349,900
358,600
367,600
376,800
386,200
395,900
405,800
415,900
Training
1,000
3,500
3,600
3,700
3,800
3,900
4,000
4,100
4,200
4,300
4,400
Fire safety service
-
-
-
-
-
-
-
-
-
-
-
Telephone/Communications
3,900
4,000
4,100
4,200
4,300
4,400
4,500
4,600
4,800
5,000
5,200
Insurance
35,000
38,500
42,400
46,600
51,300
56,400
62,000
68,200
75,000
82,500
90,800
Other Services (Contract - Orangeville)
250,000
256,300
262,700
269,300
276,000
282,900
290,000
297,300
304,700
312,300
320,100
Lawn Maintenance
7,000
7,200
7,400
7,600
7,900
8,200
8,500
8,800
9,100
9,400
9,700
Sub Total Operating
1,027,837
1,062,000
1,094,730
1,128,460
1,163,700
1,200,440
1,238,580
1,278,220
1,319,760
1,362,900
1,408,040
Capital-Related
New Non-Growth Related Debt (Principal)
-
-
45,414
154,491
194,528
228,095
262,342
300,660
353,242
393,006
New Non-Growth Related Debt (Interest)
-
-
51,822
172,519
205,371
227,513
247,645
269,575
304,600
320,630
Transfer to Capital
-
-
-
-
-
-
-
-
-
-
-
Transfer to Capital Reserve
14,810
248,956
374,048
421,052
356,811
473,782
523,061
593,436
676,649
754,611
668,700
Sub Total Capital Related
14,810
248,956
374,048
518,288
683,821
873,681
978,669
1,103,423
1,246,884
1,412,453
1,382,336
Total Expenditures
1,042,647
1,310,956
1,468,778
1,646,748
1,847,521
2,074,121
2,217,249
2,381,643
2,566,644
2,775,353
2,790,376
Revenues
Base Charge
194,519
372,646
430,190
496,619
573,306
661,836
765,455
886,935
1,027,679
1,190,742
1,379,659
Other Revenue
1,000
1,030
1,060
1,100
1,140
1,180
1,220
1,260
1,300
1,340
1,380
Hwy 9 Loan Repayment
135,660
142,443
149,565
157,043
164,896
173,140
181,797
190,887
200,432
210,453
-
Contributions from Development Charges Reserve Fund
-
-
-
-
-
-
-
-
-
-
-
Contributions from Reserves / Reserve Funds
-
-
-
-
-
-
-
-
-
-
-
Total Operating Revenue
331,179
516,119
580,815
654,763
739,342
836,156
948,473
1,079,082
1,229,411
1,402,535
1,381,039
Water Billing Recovery - Operating
711,467
794,837
887,963
991,986
1,108,179
1,237,965
1,268,776
1,302,561
1,337,233
1,372,818
1,409,337
Lifecycle Reserve Contribution ($)
Water Billing Recovery - Total
711,467
794,837
887,963
991,986
1,108,179
1,237,965
1,268,776
1,302,561
1,337,233
1,372,818
1,409,337
Forecast
THE CORPORATION OF THE TOWN OF MONO
BYLAW NUMBER 2025 - xx
A BYLAW TO AMEND BYLAW 2014-35 TO SET OUT WATER SERVICE RATES
CHARGED BY THE CORPORATION OF THE TOWN OF MONO FOR WATER
SUPPLIED FROM THE MUNICIPAL WATER SYSTEM(S)
WHEREAS, Council for the Corporation of the Town of Mono passed Bylaw 2014-
35 Water Bylaw, as amended, to provide for the operation of the water system, the
requirements for the supply of water to properties, the installation of water meters
on properties, the imposition of rates and charges for the supply of water to
properties and other water related matters;
AND WHEREAS, Sections 9, 11 and Part XII of the Municipal Act, 2001, as
amended, (the Act) and the Regulations thereto enable a municipality to impose by
Bylaw fees or charges on persons for the supply of water and the use of a sewage
system;
AND WHEREAS, Ontario Regulation 581/06 provides that fees or charges imposed
for the supply of water and the use of a sewage system under the Act and added to
the tax roll under Subsection 398(2) of the Act have priority lien status as described
in Section 1 of the Act;
AND WHEREAS, Ontario Regulation 453/07 requires that a municipality
periodically update its drinking water system financial plan as a requirement to
maintain a municipal drinking water licence pursuant to the Safe Drinking Water Act,
2002, S.O. 2002, c. 32;
AND WHEREAS, the Town held a public meeting before passing this Bylaw and
has provided notice of the public meeting and its intention to pass this Bylaw and
made available to members of the public information with respect to the water
charges.
NOW THEREFORE THE MUNICIPAL COUNCIL OF THE CORPORATION OF
THE TOWN OF MONO ENACTS AS FOLLOWS:
1.
That Schedule A to Bylaw 2014-35 be amended by:
a. Striking out Section 1 and replacing with Schedule A to this bylaw; and
b. Striking out Section 3 and replacing with, "In addition to the charges in
Section 1 of this Schedule, a flat rate per month per household
connected to the Municipal Water System shall apply to cover
maintenance costs. This flat rate shall be updated by the Treasurer as
of January 1st of each year in accordance with the rate table in 1."
2.
That this bylaw shall come into effect on July 1st, 2025.
BYLAW GIVEN THE NECESSARY READINGS AND PASSED IN OPEN COUNCIL
THIS 10th DAY OF JUNE 2025
MAYOR CLERK
Schedule A
To Bylaw 2025-xx
Schedule A
To Bylaw 2014-35
Base Charge
July-
Dec
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Metered Users
Monthly Base
Charge
$25.00
$28.86
$33.32
$38.46
$44.40
$51.26
$59.17
$68.31
$78.86
$91.04
$105.09
Cubic Metres
per Year
1-275
$2.44
$2.73
$3.06
$3.43
$3.84
$4.30
$4.41
$4.52
$4.64
$4.76
$4.88
276-425
$2.87
$3.21
$3.60
$4.03
$4.52
$5.06
$5.19
$5.32
$5.46
$5.60
$5.74
426-575
$3.10
$3.47
$3.89
$4.36
$4.88
$5.46
$5.60
$5.75
$5.90
$6.05
$6.21
576-725
$3.30
$3.70
$4.14
$4.64
$5.19
$5.82
$5.97
$6.12
$6.28
$6.44
$6.61
726-875
$3.50
$3.92
$4.39
$4.92
$5.51
$6.17
$6.33
$6.49
$6.66
$6.83
$7.01
876 & Over
$3.70
$4.14
$4.64
$5.20
$5.82
$6.52
$6.69
$6.86
$7.04
$7.22
$7.41