HALDIMAND—Haldimand County Chief Administrative Officer Cathy Case called the draft rate supported Operating Budget and Capital Forecast for 2024’s water and wastewater budget “a good news story,” with an increase of just 1.64%, or $1.41 monthly for the average residential user.
“Similar to previous years, the County has benefited from continued growth and will continue to do so in 2024, with the majority of cost pressures being offset by increased users paying for the system,” she said at a special Council meeting on December 7, 2023. “This offsetting growth has left the County in a positive situation for 2024.”
Three main factors resulted in increases: rate increase of water purchased from Hamilton for parts of the county; rising costs of chemicals used in water and wastewater treatment, and inflation costs of water and wastewater contracts.
“We did have a lot of cost pressures this year. I look at the water system specifically, the overall net cost impact was just over 8% – and that was almost fully offset by growth,” said the County’s Chief Financial Officer Mark Merritt.
He said it was important to note that because the County is undertaking a rate study in 2025, which could potentially impact some users (and money recovery), and considering the County’s long-term financial plan, that even though there was increased growth there is anticipated, and potentially unforeseen, costs to take into account.
All bulk services, such as water depot, septic holding treatment, etc. have been increased by 3% based on increases to the overall underlying costs, and excludes and delivery charges.
Large industry accounts for 25% of the County’s water income, and if one pulls away it could affect rates. Councillor Rob Shirton asked about discussions over the last several years on the possibility of Stelco, who uses potable water, to change operations and affect the County. Staff said that it has not come up in semi-annual meetings, but from an engineering perspective, it would be logical to be on the table at some point in the future.
Mayor Shelley Ann Bentley asked about Hamilton’s 10.1% increase for water, and Merritt said that the County is tied to Hamilton rates in a 20-year contract, with revision possible at the 10-year mark. This was anticipated previously by County staff based on the projected forecast.
“So getting off of Hamilton water would be more cost effective for our users?” asked Bentley.
“In a nutshell, not really,” answered Merritt, reminding her that without the infrastructure to support those users, Haldimand cannot shift away from Hamilton water.
That infrastructure could only happen with a sizable federal or provincial grant – or users would have to pay – as it is not related to development charges.
Capital expenditures related to supplying water to Norfolk is $71.4 million, which includes some elements started in prior years, and $52 million fully recoverable by Norfolk.
The County also paid $8 million in engineering for Nanticoke Water Treatment Plant Capacity Expansion, and construction will start next year.
Nanticoke’s transmission main services extension to Lake Erie Industrial Park for $3.5 million in construction costs is identified in 2022, and is fully recoverable, as is Nanticoke’s extension to Townsend, costing $4 million in construction. Townsend’s distribution transmission watermain upsizing project is $2.7 million in construction, to be completed in two phases between 2026-2030 and is 50% recoverable. Nanticoke’s reservoir baffling and transfer system projects cost $1.2 million in construction set for 2026, also 50% recoverable.
Revised growth forecasts for Caledonia have meant prioritizing the expansion of the north reservoir by constructing a new elevated tank in south Caledonia. To make this happen between 2032 and 2033, the County will reline the interior standpipe that has been budgeted in 2024 for $780,000.
After the County’s 2013 rate study, Council at that time decided to stop allocating capital replacement funds to Dunnville’s wastewater septage receiving station. Now the facility needs to be refurbished, staff have proposed any spending on it be considered at the upcoming rate study in the new year.
