Utility bills could go down a little due to proposed tweaks to the city’s 10-year utility repair, maintenance and replacement related capital plan.
Monday was the first look at the proposed “repair, maintain, replace” capital plan as budget planning for 2017 gets rolling. The plan to maintain the city’s current assets is separated out from infrastructure needed for new growth. Growth capital budgets are usually addressed in the fall as part of the main budget package, while the maintenance budgets usually sees initial approval from council in the spring or early summer.
The relatively new supplemental capital contribution fee is based on the amount needed to fund a rolling 10-year capital plan. The fees arrived on consumer bills in 2015 as part of the introduction of the city’s new utility rate model.
Council’s standing committee of the whole heard that the amounts needed for water-related capital projects will actually go up a bit over the next 10 years, but wastewater and stormwater capital needs will go down after a review of the plan.
The total is about a net decrease of $4.81 million over the next decade. There’s about $157 million worth of utility capital projects slated for that time, and about $12.9 million of that is scheduled for 2017.
“Our supplemental capital contribution will likely drop,” said Kevin Cole, the city’s director of utilities.
But any possible drop does depend on future decisions made by council, and doesn’t take into account any operating costs that may impact the funds.
Mayor Nolan Crouse said his quick math suggested that if the utility capital budget is left as is, utility rates might go down about $1.50 a month.
The possible decreases are being generated by projects being moved to later years after review, in part to give the city staff more time to complete estimates and design work.
There are also some increased costs, thanks to a weak Canadian dollar, more concise cost estimates and the inclusion of some project management outsourcing where the city might be short-staffed.
Examples of projects included on the maintenance and replacement utility capital plan include a revamp of the utility master plan in 2019, a rebuild of the Sturgeon Heights pumphouse, a water main replacement and so on.
Funds for capital projects are drawn from reserves, the utility rates, and the federal gas tax fund and for the next few years the provincial Municipal Sustainability Initiative (MSI). The MSI funds are being phased out over the next few years to minimize dependence on grants for utility infrastructure.
Cole suggested council might consider a reserve fund to help handle unplanned repairs that become necessary.
That suggestion did not sit well with Mayor Crouse, but other councillors did not comment.
