ERIN – Town council has approved a 3 per cent increase in Erin’s water rate, as well as a new interim wastewater fee of $83 per month for Erin Glen residents.
The 3% bill increase for all town water users was approved as part of a new bylaw.
The current bylaw, in effect since 2020, is set to expire on Dec. 31.
The water rate will be reviewed on a quarterly basis until a new water rate study has been completed by the town.
“Due to the residential growth and aging water infrastructure a study will be completed early in 2025 that will identify all current and future water systems capital needs, estimate future operating costs over the next 10 years and recommend new rates to recover the cost of the water system,” town treasurer Wendy Parr told council on Dec. 12.
The water rate increased 3% annually between 2020 and 2024, and both Parr and Watson and Associates recommended the town continue with the 3% increase.
The interim wastewater rate, proposed by Mississauga-based consultants Watson and Associates Economists, is based on information currently available, as the town’s wastewater plant and lines are not yet complete, added Parr.
Municipalities of a similar size and close proximity were selected to estimate a rate for the town.
“This report has combined water and wastewater rates, as moving forward they will both be included on one invoice,” explained Parr.
Temporary wastewater arrangement
“The wastewater rates will be included on the Town of Erin water bills and the town will be remitting that money to the developer,” said Parr.
Residents are currently moving into the Erin Glen housing development, so sewage needs to be hauled from temporary holding tanks.
There are approximately 70 residential units occupied and another 734 to be occupied next year, according to the Watson report.
To move ahead with the development, Solmar signed an agreement with the town regarding hauling costs.
The developer asked the town to impose wastewater charges to the new homes and redirect the funds to help Solmar offset its temporary hauling and tipping costs.
Councillor John Brennan clarified the temporary wastewater mechanism in place is paid for by the developer and not current taxpayers.
“Yes that is correct,” said Parr.
“We will have a new rate once the wastewater treatment plant is completed and the linear works …
“It has been suggested that what is charged to the current residents might be a bit high until more and more residents move in and then the fee should level off.”
Water rate study
“We’re about to embark on a great deal of growth and I want to make sure that we’re not too soon in doing this study now before we get an influx of homes,” said Brennan.
“I’m not sure in the course of this study they can properly take that into account.”
Parr replied, “It’s a very thorough study and they (Watson) get information from all sorts of sources and we have projected the number of homes, we have projected the growth.”
Brennan said conducting studies isn’t cheap, “so I want to make sure if we do it now it’ll hold for a while.”
When calculating water or wastewater rates, a study is undertaken utilizing a multi-year forecast of the following information:
- capital expenditures;
- operating expenditures;
- volume (treated versus billable); and
- customers (existing versus new).
The town has the above information to calculate the water rate, but it is not yet available for wastewater.
Wastewater survey
A wastewater survey was also conducted to examine charges for 12 surrounding municipalities, including five in wellington County: Centre Wellington, Guelph/Eramosa, Minto, Mapleton and Wellington North.
Among those municipalities, Centre Wellington has the lowest annual fee at $709.
Erin’s interim fee, which comes to about $1,000 per year (at the $83 monthly rate), is the highest in the county.
The others range between $719 (Wellington North) and $926 (Minto).
“As soon as the wastewater treatment plant and linear works are online this (interim wastewater charge) arrangement will be discontinued and new residential fees will be charged based on the actual costs,” Parr told the Advertiser in a Dec. 13 email.
Council unanimously approved the first quarter water rate and interim wastewater rate.
