Special Committee of the Whole - October 28, 2024

Please note that all Committee of the Whole decisions are subject to Council approval. The next Council meeting is scheduled for November 6, 2024.  The meeting will start 45 minutes after the completion of the Committee of Whole meeting scheduled for 1:30 p.m. If you have any questions regarding agenda items or decisions made at Committee or Council meetings, please email Amber McDonald at amcdonald@ramara.ca.  

2025 Proposed Budget

The Director of Finance presented the remaining budget presentation from October 24 and the updated 2025 Budget Summary, including follow-up items. 

The updated budget summary outlines the following:

• The total proposed operating budget - funds that support the township's day-to-day operations and services - totals $16,963,400 (increased by $14,800 from the October 24 meeting).
• the total proposed capital budget - funds allocated to maintain physical assets - totals $6,803,000 (decreased by $10,000 from the October 24 meeting).
• Increase use of reserves by $185,000 to support the significant increase in OPP costs - a 23% or 406K increase from 2024. 

As per Council direction on October 24, 2024, staff presented an updated draft 2025 municipal tax rate increase of 5.15%, which results in an extra $31.00 per $100,000 assessment.

The Committee approved receiving the updated 2025 Draft Budget and forwarding the updated 2025 Draft Budget to the Committee of the Whole meeting on November 6. The 2025 Budget will be ratified at the November 25 Special Council meeting.  

View Draft Budget

2025 Proposed Water/Wastewater Designated Ratepayers Budget

The Director of Finance presented the budget for the Water and Wastewater Designated Ratepayer. Traditionally, this budget is part of the general budget discussions; however, a separate meeting is necessary to address the current and future funding model required to support water and wastewater operations and capital projects.

Following the Council's request in the spring, the Director of Finance provided various rate scenarios designed to ensure sufficient funding for the Water and Wastewater Designated Ratepayer's budget. This approach has the long term goal to make the budget self-sustaining and to avoid reliance on borrowing from the Township's General Reserve.

Overview of Water and Wastewater Rates

The current water and wastewater rate structure consists of two components: fixed charges and consumption charges.

Typically, fixed charges are designed to cover annual operating expenses and provide stable funding. In contrast, the consumption charges are typically used to address capital expenses and can vary based on the amount of consumption.

Together, these fixed and consumption charges are essential for the operation and maintenance of the water and wastewater treatment and distribution systems.

On March 25, Council adopted By-law 2024.21 to set the  water and wastewater rates July 1, 2024 and December 31, 2024. These rates appear on the third and fourth quarter utility bills and saw a 8% increase in water rates and a 5% increase in wastewater rates. 

2025 Draft Water Budget

• The Director of Finance reported that the Water budget is very similar to previous years with no significant increase or decrease.
• For 2025, the total proposed operating and capital budget, funds that support the township's day-to-day water operations and maintenance of assets, is projected to be $3,443,000.
• With the current water rate structure (increased by 8% from July 1 - December 31, 2024), the current 2025 proposed budget has a deficit of $431,000.
• As a result of the reporting changes with the Ontario Community Infrastructure Fund (OCIF), Treasurers now have to report on the Cost Replacement Value (CRV) for specific assets based on their Asset Management Plan. Water Infrastructure Cost Replacement Value represents 39% of the total CRV; thus, the Treasurer allocated 39% ($146,300) of the total OCIF fund to the water budget revenues.

Committee approved to receive the 2025 Proposed Water Budget Presentation.

Water Scenario Rates

The Director of Finance provided two scenarios to balance the water budget. The long term goal is to ensure that it is self-funded and avoid relying on borrowing from the Township's General reserves. 

Scenario 1

• An 8% increase on both fixed and consumption rates.
• Cash flow projected deficit of $185,000 by January 1, 2033.
• 2025 revenue projection from water users of $1,716,000.

Scenario 2

• Variable increase on both fixed and consumption rates
• Cash flow projected surplus of $344,000 by January 1, 2033.
• 2025 revenue projection from water users of $1,756,000.

Committee approved a yearly increase of 8% for water rates.

2025 Draft Wastewater Budget

• For 2025, the total proposed operating and capital budget, funds that support the township's day-to-day wastewater operations and maintenance of assets, is projected to be $7,406,000.
• With the current wastewater rate structure (increased by 5% from July 1 - December 31, 2024), the current 2025 proposed budget has a deficit of $352,300.
• As a result of the reporting changes with the Ontario Community Infrastructure Fund (OCIF), Treasurers now have to report on the Cost Replacement Value (CRV) for specific assets based on their Asset Management Plan. Wastewater Infrastructure Cost Replacement Value represents 45% of the total CRV; thus, the Treasurer allocated 45% ($170,100) of the total OCIF fund to the wastewater budget revenues.
• Other revenue include $3,309,800 funding from additional users for Lakeshore Drive, Lone Birch Trail, Maple Avenue and Ridge Avenue servicing expansion, and a 1.5M load for the projected 2025 hauling. (See Report ID-46-24). 

Committee approved to receive the 2025 Proposed Wastewater Budget Presentation.

Wastewater Scenario Rates

The Director of Finance provided three scenarios to balance the wastewater budget. The long term goal is to ensure that it is self-funded and avoid relying on borrowing from the Township's General reserves. 

Scenario 1

• A 5% increase on both fixed and consumption rates.
• Cash flow projected deficit of $5,940,000 by January 1, 2033 and $8,508,000 by December 31, 2033.
• 2025 revenue projection from wastewater users of $1,659,000.

Scenario 2

• Variable increase on both fixed and consumption rates.
• Cash flow projected deficit of $2,419,000 by January 1, 2033 and $4,048,000 by December 31, 2033.
• 2025 revenue projection from wastewater users of $1,773,000.

Scenario 3

• Variable increase on both fixed and consumption rates.
• Cash flow projected deficit of $924,000 by January 1, 2033 and deficit of $6,000 by December 31, 2033.
• 2025 revenue projection from wastewater users of $1,851,000.

Committee approved a yearly increase of 13% for wastewater rates.

Reminders

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For More Information

For more details on any of these items, see the full meeting Agenda or view the meeting on the Township of Ramara's YouTube Channel.

The Meeting highlights are prepared to give residents a timely update on decisions of Council. The Council Meeting Minutes are the official record of the meeting.