Written By Olena Riznyk
LUCAN BIDDULPH – Daryl Abbs, Managing Partner of Watson & Associates Economists Ltd., presented the results of the water and wastewater rate study during the November 19 council meeting. This comprehensive study, which has been ongoing since June 2024, provides an in-depth analysis of the water and wastewater systems in the township, projecting the rates necessary to fund these systems over the next decade.
The goal of the study was to ensure that the water and wastewater systems remain financially sustainable while meeting both capital needs and future growth projections. Lucan Biddulph’s current infrastructure serves approximately 1,700 water customers and 1,600 wastewater customers. With expectations of growth in both areas, projections suggest an increase to over 2,000 customers by 2034. This growth will demand substantial infrastructure investments to maintain service levels, including increased capacity for water supply and wastewater treatment.
The capital costs for these improvements are significant. Over the next 10 years, the water system alone will require more than $4 million for capital expenditures. In addition, wastewater infrastructure upgrades—particularly the expansion of the treatment plant—are expected to exceed $23 million.
To address these needs, the study outlines several funding options, including utilizing existing reserve funds, development charges, debt financing, and transfers from operating budgets. Although the current reserve funds for water and wastewater services are in good shape, additional funding will be required to meet the projected growth.
The study also analyzed the current rate structure, noting that the system relies heavily on fixed charges. Compared to other municipalities, this could place a heavier burden on residents with varying levels of water consumption. To remedy this, the study recommends adjusting the balance between fixed charges and volume charges. The proposed changes suggest a 6% annual increase in water volume charges, with a more gradual increase for wastewater rates, depending on when the treatment plant expansion takes place.
For 2025, a typical residential customer would see a water rate of $30.52 per month, with an additional charge of 88 cents per cubic meter of water consumed. Wastewater rates are expected to be similar, though the exact figures will vary based on the timing of infrastructure upgrades.
In addition to the basic rate structure, the study identifies other user fees commonly imposed in neighbouring municipalities, such as application fees for new water connections, meter reading fees, and penalties for unauthorized use of fire hydrants or tampering with meters.
The proposed rate adjustments will be reviewed by council in the coming months.
