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RFD- 3453 Bylaws   Item #   9. b.    
Regular Council Meeting Agenda
Meeting Date: 11/26/2018  
Title:    C-1055-18 - Third Reading - 2019 Fees and Charges Bylaw - Pungur-Buick
Department: Corporate Services  
Strategic Vision Element: n/a Related Goal: Spruce Grove has a robust, growing economic base that generates balanced revenues to support the City’s high standards for services and programs.

Information
Request for Decision Summary
This report is to authorize the 2019 fees for Water and Wastewater Services, Waste Management, Penalties, Fines , Assessment Complaints, Cemetery, Tribute Park, Transit and other administrative and general services.

Proposed Motion
That third reading be given to Bylaw C-1055-18 - 2019 Fees and Charges Bylaw as amended.
Background/Analysis
The recommended 2019 - 2021 Corporate Plan proposes a utility rate increase of 6.42 per cent in 2019 to meet the utility operating and capital costs. The impact on a household with an average monthly consumption of 14 cubic meters per month is $5.04.

Utility rates are partially driven by the cost of purchasing water and processing wastewater. Water purchased from the Capital Region Parkland Water Services Commission is forecasted to be $2.11 per cubic meter in 2019 (10.5 per cent increase from 2018). Wastewater treatment by the Alberta Capital Region Wastewater Commission is proposed to be $1.16 per cubic meter in 2019 (4.5 per cent increase from 2018).

In addition to water and wastewater costs, the utility rate increase reflects infrastructure maintenance and replacement, market cost of construction and maintenance of a surplus balance.

Other utility fees that have been revised are:
  • Supply of water service only to Parkland County increased from $3.228 to $3.435 per cubic meter.
  • Supply of water and wastewater service for the purpose of new land development increases from $861 to $916 per hectare.
  • Supply of wastewater service only increases from $23.66 to $25.18 per unit, per month.
  • Eco Centre - fee adjustments have been made based on cost recovery principles.
Cemetery rates have been updated to include the new service of Columbarium access.

Transit rates have been incorporated into the authorization of the Fees and Charges bylaw. A 2016 consultant review confirmed the City's fare setting strategy is consistent with the industry wide practice of first setting adult fares and scaling all other products as a factor to this. Local fares for both Youth and Senior also align and are set at the same rate. 

The following amendments are being put forward at third reading for added clarity: 

Schedule B has been amended to provide clarification of:
Waste Management / Garbage / Bagged household waste per bag up to 100L - $3
Small items - per item over 100L - $5

Schedule C has been amended to include the term (10 years) of the Tribute Bench purchase. 
Options/Alternatives
For utility rates to take effect on January 1, 2019, the bylaw will need to receive third reading by December 10, 2018.
Consultation/Engagement
Utility rates are discussed in detail as part of the Committee of the Whole and Council corporate plan deliberations. The Transportation Master Plan is the foundation of the transit growth strategy.
Implementation/Communication
Communication of the utility rate increase will include advertisements in the Examiner, the City website, social media outlets and on the bill issued in early December. To provide customers with the earliest opportunity to identify consumption anomolies, the City reduced the period between the cutoff for billed consumption and mailing the bill. Additional efforts to assist customers with managing the rising costs include door delivery of consumption notifications for readings identified as out of range, provision of timeline data of consumption activity and ongoing enhancement of conservation education. 

In accordance with the agreement between the City and Parkland County to supply water to Parkland Village, a 90 day notice has been issued to advise of the proposed rate increase.
 
Impacts
n/a

Fiscal Impact
Financial Implications:
Utility operations and capital work is funded with utility revenue. Neither grants nor taxes are used to subsidize rates.

 
Attachments
Bylaw C-1055-18

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