The Water Rate Review survey closes on July 31 but there is still time to have your say. Council has directed City staff to review how we recover the costs to deliver water, wastewater and stormwater services.
Some background first
This review examines the current water rate structure to ensure that it is still serving the needs of our residents and businesses, while still providing the funding necessary to provide exceptional services. In reviewing the water rate structure, the City aims to implement a more equitable and transparent method of water, wastewater and stormwater billing for all.
The current rate structure is a combination of fixed and variable (or consumption-based) charges for water and wastewater services and a fixed fee for fire supply services. Ninety per cent of the City’s costs to deliver water and wastewater services are fixed, however, only 20 per cent of the costs to deliver these services are recovered from fixed charges and the remainder is based on how much water a property uses.
Here are answers to some of the questions we have heard so far.
Why is the City reviewing the Water and Wastewater rate structure?
To enhance transparency and accountability, we will maintain separate charges for water and wastewater fees, each with a fixed component. Our goal is to better align the fixed costs of service delivery with the costs recovered from bills. Additionally, we are exploring ways to ensure that both small and large users are charged a proportionate amount of fixed fees. Simultaneously, we’ll continue to seek ways to incentivize water conservation while fostering an economically competitive environment for businesses. Lastly, we are exploring ways to simplify rate structures for property owners.
How is water and wastewater currently billed?
For each 30-day period, your drinking water and wastewater rates are based on four tiers of water usage:
- Tier 1 – up to 6 cubic metres
- Tier 2 – 7 to 25 cubic metres
- Tier 3 – 26 to 180 cubic metres
- Tier 4 – more than 180 cubic metres
To encourage water conservation, fees are lowest for Tier 1 and increase with each tier. For example, if you consumed 10 cubic metres, the first six cubic metres would be calculated at the Tier 1 rate, and the remaining four cubic metres would be calculated at the Tier 2 rate. Annual fixed fees for water, wastewater and fire supply are based on a property’s meter size.
What do water fees pay for?
The City manages a wide range of water and wastewater infrastructure, including production, distribution, collection, and treatment which accounts for 27 per cent of the costs. Infrastructure renewal constitutes 56 per cent of our efforts and the remaining 17 per cent is for engineering, planning and client servicing. Notable assets include 6,000 km of sanitary and stormwater pipes, 3,000 km of watermains, 6,300 culverts, over 315 stormwater facilities, two water purification plants (Britannia and Lemieux Island), one wastewater treatment facility (The Robert O. Pickard Environmental Centre), and 55 wastewater pumping stations.
How could this review affect my water and wastewater rates?
- The split between the fixed and variable charges on your bill could change.
- Different tiering structures and usage rates based on your property type and your consumption.
- Residential and small properties with small meters could see a lower fixed charge on their bill and a higher variable rate.
- Large properties with large meters could see a higher fixed charge on their bill and a lower variable rate.
What are the next steps in the review?
The survey remains open until July 31. Staff will continue with partner consultations until the end of the year. Once staff have the opportunity to review all the feedback, we will also provide property owners and partners the opportunity to review the proposed options and provide feedback. The final step will be reporting back to City Council in June 2025. Once a decision is made by City Council, staff will inform all property owners of the changes and implementation dates.
To keep informed, read more information on the rate review and visit our Engage Ottawa page regularly for opportunities to participate.