Written By David Gomez, Local Journalism Initiative Reporter
SOUTHWEST MIDDLESEX - Council has approved a new water and wastewater rate structure as part of its plan to secure long-term financial sustainability for municipal water systems. The decision, made during the December 4th council meeting, comes amid discussions surrounding rising operational costs, capital needs, and regulatory requirements under Ontario’s Safe Drinking Water Act. However, the plan approved by council has created confusion in the community and residents have expressed concerns about the assumptions underlying the financial plan.
Under Ontario Regulation 453/07, municipalities must submit a six-year financial plan to renew their drinking water license. The municipality’s current water and wastewater infrastructure requires significant investment to meet future demands, ensure regulatory compliance, and avoid deficits. Byron Tan, manager at Watson and Associates Economists Ltd., presented findings from the recently conducted rate study, outlining the challenges and proposed solutions.
Southwest Middlesex’s water systems serve over 1,700 customers, while wastewater services cover approximately 1,050 users in Glencoe and 187 in Wardsville. The disparity in customer base and costs has led to financial pressures, particularly for the Wardsville system.
Tan presented two options for wastewater rates to address the unique challenges posed by Glencoe and Wardsville systems.
Option 1: Separate Financing: Under this structure, the Glencoe and Wardsville systems would maintain distinct rate frameworks. Glencoe customers would face 12.5% annual increases in wastewater rates from 2025 to 2027, followed by 5% increases through 2033. For Wardsville, rates would increase by 25% annually for the first two years, drop to 15% in 2027, and stabilize at 10% annually through 2033. Even with these adjustments, the Wardsville system would remain in deficit until 2027, when it is projected to achieve a positive balance.
Option 2: Combined Financing: This approach combines the financial management of Glencoe and Wardsville systems. Customers in both areas would see 15% annual increases from 2025 to 2027, reducing to 5% annually thereafter. While this option results in slightly higher rates for Glencoe users, it significantly alleviates financial pressures on Wardsville, lowering its rate increases from 25% to 15% annually.
Tan emphasized that Option 2 effectively balances the financial burden across the municipality, preventing further deficits in Wardsville and providing a more stable path toward long-term sustainability.
Council acknowledged the difficulty of increasing rates but noted the necessity to secure sufficient funding for operations and capital improvements. The financial plan must also account for $13.8 million in water infrastructure costs and $10.7 million for Glencoe wastewater over the next decade.
Some councillors expressed concerns about the impact of the proposed rates on residents. Councillor Joel Haggith supported Option 2, citing its potential to evenly distribute costs while ensuring system sustainability. Other councillors discussed the importance of addressing deficits and the necessity of grant opportunities to alleviate financial pressures on ratepayers.
Council voted 5-3 in favour of Option 2 for wastewater rates. This rate structure will fund operating costs, capital improvements, and reserve contributions while addressing the Wardsville system’s financial challenges. The financial plan will be submitted to the Ministry of Environment, Conservation and Parks by the January 2025 deadline.
Despite the approval, residents have voiced concerns about the report’s growth projections, particularly its estimate of 894 new water users in Glencoe over the next 10 years—equivalent to about 2,000 new residents. Community members have highlighted on Facebook that this assumption is unrealistic, given the current pace of development and housing trends in the area.
Social media discussions have led to calls for action, including:
-A review of the Watson & Associates report to verify the accuracy of its growth and financial assumptions.
-Clarifications from municipal staff and consultants regarding the methodology used.
-Engaging a third-party expert to conduct an independent second evaluation of the rate study and its conclusions.
Some Southwest Middlesex residents have urged councillors to revisit the decision and advocate for a second opinion on the study’s findings. These concerns underscore the need for transparency and accountability as the municipality navigates these complex financial decisions. Let’s hope to see actions from council on this very important issue.
