CAPITAL CHARGES

EXPLANATION OF 2013
SEPTIC/HOLDING TANK
CAPITAL CHARGES
Committee of the Whole Meeting
June 17, 2013

MOST COMMON MISCONCEPTION
Most Haldimand County residents have the
misconception that property taxes fund
water and wastewater
NOT TRUE

Education Property Taxes
Roads Maintenance & Winter Control
Roads Engineering & Construction
Police
vernance/Corporate Support/Financing
Facilities and Parks Operations
Fire
Garbage & Recycling
Grandview Lodge
Ambulance
Social Assistance & Child Care
Libraries
Social Housing
ommunity Development & Partnerships
Tourism & Economic Development
Public Health Services
Municipal Drains & Storm Sewers
y-law, Animal Control & Crossing Guards
Planning & Development
Municipal Property Assessment Corp.
Conservation Authorities
Heritage & Culture
Average Residential Tax Bill - Allocation by Services
2013 Assessment = $223,400 / Total Taxes = $2,849
16.6%
15.5%
11.1%
10.7%
10.4%
5.4%
5.1%
4.9%
3.6%
3.1%
1.9%
1.8%
1.4%
1.3%
1.2%
1.1%
1.1%
1.1%
1.0%
0.9%
0.5%
0.5%
$0 $100 $200 $300 $400 $500

If not from taxes, how are Water &
Wastewater Services Funded?
USER PAY
(BILLED RATES)
Urban = metered
Rural = delivery by a 3 rd party

2013 Wastewater System
Customers and Consumption
Customer
Number of
Customers
Approximate
Treatment Volume
(cubic metres) %
Metered Customers 8,716 2,257,579 96.9
Leachate (from County’s Landfills) 2 53,962 2.3
Holding Tank / Septic 7 * 19,408 0.8
Total 8,725 2,330,949 100.0
* Represents # of haulers that utilize the
County’s treatment system

2013 Wastewater Operating Budget
$8,066,510
Septic / Holding Tank
$302,000
Other $614,370
Leachate $1,995,460
Metered
$5,154,680
Metered - 64%
Leachate -25%
Other - 8%
Septic / Holding Tank - 4%

URBAN CUSTOMER
2 COMPONENTS TO THE MONTHLY CHARGE
1. Basic Charge for the Fixed Costs (incl. capital)
• Billed whether they use the system or not
PLUS
2. Consumption Charge for the Variable Costs
• Billed based on actual usage

Urban Residential Customer
Average 2013 Bill = $1,049/yr
1. Fixed (Zero consumption) :
- Water = $21.85/mth ($262.20/yr)
- Wastewater = $20.51/mth ($246.12/yr)
PLUS
2. Variable (Consumption 20 cm):
- Water = $21.88/mth ($262.56/yr)
- Wastewater = $23.15/mth ($277.80/yr)

RURAL CUSTOMER
In past, County has only billed 3 rd party hauler
One variable rate (based only on volumes) was
charged to the hauler for the treatment cost, who
collected from customers
The capital cost of the systems was not allocated to
all potential users – resulting in rates being unfair
and too expensive for those who do use the
County’s systems

Rural Residential Customer
Average 2013 Treatment Cost (excludes 3 rd party hauler cost)
1. Fixed :
- Water = $0
- Wastewater = $12.83/yr
2. Variable (2000 gal.):
PLUS
- Water = $27.49/load
- Wastewater (Septic or Holding Tank) = $77.99/load

Septic / Holding Tank
Annual Capital Charge
Annual Capital Charge
Capital Investment $4,206,136
Annual Depreciation $134,825
Estimated # of Customers 10,512
Per Customer Annual Charge $12.83

Revised Septic & Holding Tank Rates
Rate Category 2012
Preliminary 2013 Rates
Presented to
Customers at Public
Information Sessions
Council Approved
2013 Rates
Following Customer
Consultation
Septic Only (per m3) $29.71 $18.99 N/A
Holding Tank Only (per m3) $7.32 $13.77 N/A
Combined Septic/ Holding
Tank Rate (per m3) N/A $14.07 $8.58

IMPACT ON TREATMENT RATES
(2013 compared to 2012)
Preliminary Rates – Feb/13 Council Approved Rates
Septic only 36% decrease N/A
Holding Tank only 88% increase N/A
Blended Rate
- Septic
- Holding Tank
53% decrease
93% increase
71% decrease
17% increase

Septic & Holding Tank
Treatment Cost
2,000 gal. Load (excl. delivery charge)
2012
Preliminary 2013 Rates
Presented to
Customers at Public
Information Sessions
Council Approved
2013 Rates
Following Customer
Consultation
Impact on Customer - 2000 gal.
load (excl. delivery charge)
-Holding Tank
$66.56
$128.34
$77.99
- Septic Tank
$270.02
$128.34
$77.99
Septic/ Holding Tank Capital
Charge Per Household (Annual) N/A N/A $12.83

SEPTIC/HOLDING TANK
RATE OPTIONS
Council considered the following options:
1. Status Quo: urban customers continue to
subsidize rural customers
2. Preliminary Rates: charge both capital and
operating costs to current users only
3. Approved Rates: charge capital costs to all
users who can access system, similar to
urban rate methodology

Administration Charges
Annual Cost of
Billing &
Collecting
Metered Bulk Water Holding / Septic
$441,800 $63,000 $1,000
Approx. # of
Customers 8,700 860 7-12
Administration
Charge $4.22/bill $14.96/mth $14.96/mth

Impact on Customers
User 2012 2013 Increase/(Decrease)
Low Volume Metered
(5 cm)
$ $ $ %
51.00/mth 53.62/mth 2.62 5.1
Average Residential
Metered (20 cm) 99.07/mth 87.40/mth (11.67) (11.8)
Commercial (500 cm) 1,785.36/mth 1,524.46/mth (260.91)/mth (14.6)
Industrial 31,375.13/mth 25,613.17 (5,761.96)/mth (18.4)
Bulk Water (2,000 gal.) 24.92/load 27.49/load 2.57 10.3
Holding Tank (2,000 gal.) 66.56/load 77.99/load 11.43 7.2
Septic Tank (2,000 gal.) 270.02/load 77.99/load (192.03) (71.1)
Holding /Septic Capital
Charge N/A $12.83/yr 12.83

NEXT STEPS
Approved Rates effective May 1, 2013
- Hauler billings reflect revised treatment rates
- Septic/Holding tank property tax bills will be
mailed in mid-July with $12.83 annual charge
Administration Fees effective July 1, 2013
- Only charged to the haulers
- Option of deactivating account