1. 2016 Water and Wastewater Rates Committee of the Whole November 16, 2015 Presenter: Mike Mayes – Director, Financial Services/Treasurer

2. Today’s Objectives 1.Approve 2016 water rates 2.Approve remaining 2016 fees and charges 3.Receive update to 6-year water and wastewater financial plan 2

3. Utility Budget Drivers Regional charges for water and wastewater will be increasing 9% per year Conservation results in lower consumption Providing for sustainable asset replacement – an annual increase of 8.5% Building rate stabilization reserves General cost increases required to maintain health and safety 3

4. Regional Charges Wholesale rate increases approved by Regional Council 4 201620172018201920202021 Water2.5%11.7%8.8%12.2%4.8%4.6% Wastewater13.9%7.2%9.2%6.7%12.1%1.6% Combined9.0% 2.9%

5. Consumption Trends 5 YEAR201620172018201920202021 Consumption in cubic meters per person per year 75.573.070.668.366.164.0 Projected population87,51988,42189,33190,25191,18192,100 Billable consumption in cubic meters (000’s) without new meters 6,6076,4576,3116,1686,0295,892 Billable consumption in cubic meters (000's) with new meters 6,6076,5366,4656,3946,2506,110 Billable consumption Growth Rate with new meters -2.3%-1.1% -2.3%

6. Sustainability Measures 6 Based on analysis completed for the Capital Financing Sustainability Strategy. It is proposed to increase annual contributions by 8.5% to reach long term financial sustainability.

7. Combined 2016 Utility Budget 2015 Budget 2015 Projection 2016 Budget Revenue$32,792,152$31,750,000$32,843,700 Expenses: Regional charges$18,234,184$17,300,000$18,320,000 Asset Replacement Fund contributions 5,611,065 6,099,460 Operating costs6,986,3887,581,3626,862,679 Debt servicing1,257,573 1,178,000 $32,089,210$31,750,000$32,460,139 Rate Stabilization Fund contribution $702,942$0$383,561 7

8. Source: York Region 2015 Water and Wastewater Financial Sustainability Plan Financial Sustainability

9. Rate Re-structuring 9 Comparing Newmarket Bills to the York Region Average and Median - 2014 CONSUMPTION200m 3 10,000m 3 30,000m 3 100,000m 3 Meter Size5/8"2"3"4" Newmarket$ 914$ 29,256$ 87,096$ 289,536 Average$ 760$ 34,313$ 103,208$ 343,379 Median$ 666$ 31,475$ 94,425$ 314,750 The recommended rate re-structuring would shift some of the burden from low water users (mostly residential) to high water users (commercial and industrial).

10. Rate Re-structuring 10 Recommended monthly fixed rate phase-in program DATE January 1 2016 July 1 2016 January 1 2017 Base Fixed Rate$28 $30.75 2" Fixed Rate$28$112$246.00 3" Fixed Rate$28$210$461.25 4" Fixed Rate$28$350$768.75

11. Recommended Rate Increase 11

12. Next Steps For November 23 CoW on the budget: Further deliberation if required For November 30 Council: Approval of water, planning, fire, general and building Date and format to be determined Further discussion and possible workshop on the updates for the 6-year Water and Wastewater Financial Plans 12

13. Thank You