| Combined Water, Sewer and Property Tax Costs | |||
|---|---|---|---|
| Windsor | Provincial Average | Windsor Over / (Below)Average | |
| Water | $485 | $539 | ($54) |
| Sewer | $789 | $577 | $212 |
| Taxes | $3,295 | $4,066 | ($771) |
| Total | $4,569 | $5,182 | ($613) |
Source: 2019 BMA Study
All of this information impacts the development of the Sewer Surcharge rates.
Risk Analysis:
As in prior years, there are a number of risks to be considered in conjunction with developing the 2020 Sewer Surcharge Budget and rates, some of which are summarized below:
Operating Expenditure Risks - The projections put forth are based on current estimates of the required expenditures relative to Pollution Control and Sewer Maintenance and Repair, etc. These estimates are expected to be reflective of final actual costs, however there is the risk given that these costs will be incurred throughout the year that some fluctuations in the expenditures as compared to budget may occur. The likelihood of this risk materializing is possible; the likely impact of the consequences is moderate. Therefore, this should be considered a moderate risk. Mitigation for this risk comes from the Quarterly Variance monitoring and the Sewer Surcharge reserve fund.
Water Consumption Risk – Reduced consumption of water is an ongoing trend, which places pressure on the Sewer Surcharge revenue. Essentially, the decreased water consumption reduces the City's revenues from the sewer surcharge. At this point, water consumption is an estimate and is subject to considerable variability. The likelihood of this risk materializing is possible; the likely impact of the consequences is moderate. Therefore, this should be considered a moderate risk. Mitigation for this risk comes from the Quarterly Variance reports and the Sewer Surcharge Reserve Fund. Additionally, it should be noted that the City's consumption projections differ from those provided by WUC. The City's consumption projections are based on the consumption trends (net of the excess summer usage) of the last few years and are reflective of moderate consumption decreases. The WUC consumption estimates are more conservative.