Post on 11-May-2020
WASTEWATER & TREATMENT Approved
www.london.ca/budget
Contents
Wastewater and Treatment Budget Overview Recommendations ..................................................................................................................................................................... 1 Executive Summary ................................................................................................................................................................... 2
Operating Budget 2015 Budget Highlights ........................................................................................................................................................... 22 2015 Object of Expenditure and Source of Revenue Summary .............................................................................. 23 2015 Operating Program Budget Summary .................................................................................................................... 24 Overview of Program Changes – Revenue ....................................................................................................................... 25 Overview of Program Changes – Expenditures ............................................................................................................. 26 Four Year Operating Forecast ............................................................................................................................................... 27 Performance Measures and Staffing ................................................................................................................................... 30
Capital Budget Capital Program .......................................................................................................................................................................... 31 Capital Expenditure Summary by Classification ........................................................................................................... 35 Capital Source of Financing Summary ............................................................................................................................... 36 Capital Expenditure Detail ...................................................................................................................................................... 37
Reserve Funds and Reserves .................................................................................................. 76
Debt Summary ................................................................................................................................. 81
Appendix A - 2015 Schedule of Rates & Charges ......................................................... 83
Appendix B – 2015 Business Plan & Business Cases ................................................. 87
Wastewater and Treatment 2015 Budget and Forecast
Recommendations Council resolved on January 27, 2015:
“That, on the recommendation of the Managing Director, Environmental and Engineering Services and City Engineer, with the concurrence of the Managing Director, Corporate Services & City Treasurer, Chief Financial Officer, the following actions be taken with respect to the 2015 Operating Budget, 2015 Capital Budget and associated forecasts for Wastewater and Treatment Services:
(a) the 2015 Operating Budget for Wastewater and Treatment Services BE APPROVED as submitted;
(b) the 2016 - 2019 Operating Forecast for Wastewater and Treatment Services BE RECEIVED for information;
(c) the 2015 Capital Budget for Wastewater and Treatment Services BE APPROVED as submitted;
(d) the 2016 - 2024 Capital Forecast for Wastewater and Treatment Services BE RECEIVED for information;
it being noted that all rates and charges related to the provision of Wastewater and Treatment Services, with the exception of charges related to the installation or replacement of Private Drain Connections, will increase by 7% effective January 1, 2015 as approved by Council on November 25, 2014.”
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Wastewater and Treatment 2015 Budget and Forecast
Supporting Council’s 2010-2014 Strategic Plan by Responding to its Strategies
A Strong Economy:
• Invest in infrastructure – robust capital programs for growth, lifecycle renewal and system improvement
• Maintain competitive utility rates – fair and equitable rate structure that supports both water conservation and low rates for industry
• Establish a focused strategy for the downtown – capital investment in downtown infrastructure
• Build on the industrial land development strategy (ILDS) – ILDS projects included in the capital program
A Green and Growing City:
• Protect our natural heritage and environment – sewage treatment and stormwater management
• Promote a “green culture” and the fundamentals of sustainability – active participation by staff in Thames watershed, provincial, national and international teams setting direction and policy
• Reduce carbon footprint through wise actions that benefit our local, regional and global environment – energy reduction projects with significant results
• Facilitate, plan and manage growth for the greatest long-term benefit for all – updated Master Plans in 2014
• Demonstrate environmental leadership in all municipal operations – innovation and design awards
A Strong Economy
A Vibrant & Diverse
Community
A Green & Growing City
A Sustainable Infrastructure
A Caring Community
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Wastewater and Treatment 2015 Budget and Forecast
• Establish London as a leader in green technologies – construction of the London
Wastewater Facility for wastewater treatment research, testing and commercial validation
A Sustainable Infrastructure:
• Invest in strong, safe, modern and efficient infrastructure networks – a balanced sewer replacement program with cutting-edge rehabilitation technologies
• Ensure affordability for users – fair and equitable rate structure that supports both water conservation and low rates for industry
• Achieve effectiveness, economy and efficiency in operations – achieving financial stability and optimizing treatment plants
One of the most significant undertakings of the new Council will be to update the City’s strategic plan that will cover the next 4 years. The newly elected Council will be establishing the vision and future direction for the City and the strategic objectives that support the vision. It is anticipated that the development of the new strategic plan will be completed in early 2015.
Overview
The approved 2015 Wastewater and Treatment operating and capital budgets represent the final step along the path to a financially sustainable wastewater conveyance, treatment and management system for Londoners. Continuing the theme of the 2014 budget, the 2015 Wastewater and Treatment operating and capital budgets support 4 core business objectives:
• Compliance • Growth • Efficiency • Best Management Practices
The financial sustainability plan endorsed by Council during the development of the 2013 budget and confirmed during 2014 budget deliberations continues to remain the foundation on which the 2015 operating and capital budgets were developed. Adherence to the plan will result in a 7% rate increase in 2015, with financial sustainability1 being achieved in 2016. The goal for rate increases beyond 2015 is a blended inflationary rate of 3% or less.
1 Financial Sustainability is defined as the achievement of annual rate increases that can be maintained at or near the annual rate of inflation based on a combination of CPI and the Construction Price Index with appropriate use of debt financing, adequate reserve funds and the appropriate investment in capital.
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Wastewater and Treatment 2015 Budget and Forecast
The approved 2015 Wastewater and Treatment budget presents a balanced cost/revenue plan in the amount of $89.18 million. This represents an overall increase of 5.5% over 2014. Although rates are increasing 7%, lower water consumption is anticipated to partially offset the incremental revenue from the rate increase.
The approved operations portion of the budget totalling $36.0 million represents a 1.1% increase over 2014. There are a number of factors driving this 1.1% increase, including:
• $371,000 increase in personnel costs in accordance with existing employment agreements, plus the addition of two new positions in the Stormwater Management Unit to implement the numerous stormwater management facility projects scheduled over the next 10 years in accordance with the approved 2014 Development Charges Study and Growth Management Implementation Strategy (GMIS);
• $68,000 increase in administrative costs due in large part to a 1.9% inflationary increase in the corporate charges to Wastewater for services provided;
• $237,000 increase in equipment and purchased services costs primarily due to increased ash disposal and trucking costs reflecting the increased usage of the ash basin in recent years;
• $294,000 decrease in materials and supplies costs due to a decrease in the budgeted chemical requirements at the pollution control facilities based on a review of recent usage.
Operating $36.0 million Capital & Debt
Servicing $53.2 million
Total 2015 Approved Budget = $89.2 million
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Wastewater and Treatment 2015 Budget and Forecast
The approved 2015 capital budget totals $77.6 million, up from $65.7 million in 2014. The total 5 year capital plan for 2015 to 2019 amounts to $378.3 million, up from the $289.7 million that the 5 year capital plan outlined in the 2014 approved Wastewater and Treatment capital budget. Major factors contributing to the increase in the capital forecast include:
• $38 million of new projects added to the capital plan over the next 5 years to support the City’s Industrial Land Development Strategy, two-thirds of which are assumed to be funded by senior levels of government.
• Variety of new or accelerated capital projects identified in the 2014 Development Charges Background Study and GMIS.
Debt servicing costs are projected to decrease from $13.7 million to $13.1 million and capital funding has been increased by $4.8 million to $40.0 million. It should be noted that at the current recommended rate increases there is no new rate supported debt anticipated with debt payments having peaked in 2014 from previously approved debt. This further supports the position that Wastewater and Treatment is nearing financial sustainability. The Wastewater and Treatment Service Area continues to build its reserve funds in accordance with the 20 Year Sewer System Plan and this will continue to be a high priority going forward. A sufficient reserve fund balance is required to manage future costs not yet articulated in the Pollution Prevention and Control Plan (in progress) and Treatment Plant Optimization projects (flood protection, asset management, effluent regulation changes and energy reduction), also in progress of being defined.
Impact on the Average Residential Ratepayer
The average cost to the homeowner for 2015 is forecasted to increase by $29 per year (based on projected 2014 consumption of 171.9 m3). At the revised rates for 2015, the homeowner’s cost for the year will be $475 or $1.30 per day.
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Wastewater and Treatment 2015 Budget and Forecast
Recent Accomplishments
The Wastewater utility has successfully completed a number of initiatives in support of its 4 core business objectives – Compliance, Growth, Efficiency and Best Management Practices. Selected highlights of recent accomplishments include:
Compliance • Purchased and installed 13 permanent flow monitoring gauges to comply with Federal
Fisheries Act Regulation for Municipal Wastewater Effluents.
Budgeted Residential Cost at 2014 Rates (1)
Forecasted Residential Cost at 2014 Rates (2)
2015Increase (7%) (3)
Forecasted Residential Cost at 2015 Rates (4)
Sanitary $299 $281 $20 $301Storm $165 $165 $9 $174
$464 $446 $29 $475
(4) The forecasted residential cost in 2014 is based on an average residential consumption of 171.9 m3.
(1) The budgeted residential cost in 2014 was based on an average residential consumption of 181.2 m3.(2) The forecasted residential cost in 2014 has been restated using a revised average residential consumption estimate of 171.9 m3.(3) The forecasted average residential increase in Storm charges for 2015 is less than 7% due to the phase-in of the new Storm Drainage Charge.
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Wastewater and Treatment 2015 Budget and Forecast
• Completed Phase One of the Pollution Prevention and Control Plan and commenced
Phase Two of this multi-year initiative.
Growth • Completed various growth-related studies and reports, including the Southwest Area
Sanitary Servicing Master Plan, 2014 Wastewater Servicing Master Plan Update, 2014 Stormwater Master Plan Update and 2014 Development Charges Background Study.
• Commenced Greenway Pollution Control Plant expansion detailed design (which is the start of a multi-year undertaking) to ensure sufficient treatment capacity is available to service future growth, particularly growth resulting from central London intensification and development in the southwest area of the city.
Efficiency • Developed a strategy and multi-year roadmap to optimize London’s wastewater
treatment plants, which will identify performance enhancement opportunities, test and model those opportunities to determine possible benefits, improve wet-weather performance, integrate with other plant needs (flood proofing, asset management, future effluent criteria, energy management, etc.) and provide input into future capital and operating forecasts.
• Rehabilitated designated sections of the existing Ridout Street brick sewer and Gordon Trunk sewer (multi-year projects) utilizing trenchless technology, which generates significant cost savings and reduced social disruption than alternative rehabilitation techniques.
Best Management Practices • Continued to negotiate a contract with a software vendor to undertake the
implementation of a Computerized Maintenance Management System, which will bring the City’s utility maintenance and work flow management up to industry standards. This will result in staff resource efficiencies, enhanced documentation, and cost tracking of maintenance activities, while also ensuring compliance with regulatory requirements.
• Completed construction of the Southern Ontario Water Consortium-London Wastewater Facility at Greenway Pollution Control Plant. Participation in this initiative will ensure London is at the forefront of future innovations in wastewater treatment technology.
• Implemented the new water and wastewater rate structure effective March 1, 2013. The new rate structure shifts a greater proportion of wastewater revenues to fixed charges, making the utility less susceptible to changes in water consumption. This is consistent with the recommendations of the PwC Value for Money audit2 conducted in 2011.
2 A Value for Money audit is conducted to assess the effectiveness and efficiency of an organization’s utilization of its funds.
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Wastewater and Treatment 2015 Budget and Forecast
Economic Challenges
Notwithstanding the recent successes of the Wastewater service area, a number of economic challenges are currently affecting the 2015 budget as well as the forecast for the near future:
• Consumption • Inflation • Energy prices • Senior government funding programs
Although these are currently being managed, they could adversely affect future budgets.
Consumption • Despite the implementation of the new water and wastewater rate structure in March
2013 that shifted a greater proportion of total revenues to fixed charges, revenues continue to be heavily influenced by water consumption.
• Water conservation efforts, coupled with recent weather conditions that have not been conducive to water consumption, continue to drive water usage far lower than Administration previously forecasted.
• The chart below illustrates the declining water consumption trend, as well as the savings that have been achieved by an average residential user as a result of conservation efforts.
• A significant reduction in forecasted consumption was made for the 2014 budget, reducing consumption forecasts from 43.2M m3 to 41.0M m3 (5%) for 2014. A further anticipated reduction to 40.1M m3 (2%) per year is the basis for the 2015 budget.
• If recent consumption trends are indicative of future water use patterns, the Wastewater utility may be challenged to generate sufficient revenues to support future infrastructure needs under the current rate plan.
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Wastewater and Treatment 2015 Budget and Forecast
Inflation • The outcome of achieving “financial sustainability” in the context of the Water and
Wastewater utilities is realizing future rate increases at or near the level of inflation. Administration is currently forecasting this future inflationary rate at approximately 3% based on a combination of consumer prices and construction price indices.3
• Should economic circumstances (nationally, provincially or locally) change, future rate forecasts could be positively or adversely affected.
Energy Prices • Although inflation is a significant factor in future rate forecasts, price increases in energy
commodities – specifically electricity and natural gas – could have a significant impact on future rate forecasts as they are a relatively large component of the Wastewater budget and are increasing at rates much higher than general trends.
• Currently, electricity costs are forecasted to increase at an average of 6.2%/year from 2015 to 2019; natural gas costs are forecasted to increase at an average of 9.9%/year during the same time period (based on City of London forecasts).
• While further energy efficiency projects are planned for the near future, increases in energy prices greater than forecasted above could adversely impact future budgets.
3 This inflationary-level rate is based on the Bank of Canada’s long-term inflation target of 2% and the historical non-residential building price index which has traditionally averaged approximately 4%/year.
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Wastewater and Treatment 2015 Budget and Forecast
Senior Government Funding Programs
• Outside of the annual gas tax funding allocated to the Wastewater utility, there are currently no senior government funding programs benefiting Wastewater. Previously, Wastewater was able to access funding under the Infrastructure Stimulus program to assist in funding critical infrastructure works.
• Included in the approved 2015 Wastewater budget and described in further detail below are various projects related to the City’s Industrial Land Development Strategy. The first phase of these projects has been included in the budget based on the assumption that two-thirds of the required funding would be provided by senior levels of government. Should this funding not materialize, the capital plan will be adversely impacted and the scope of work will have to be reduced.
Revenue Overview
The following chart outlines the key factors driving the $4.65M (5.5%) increase in revenues in the approved 2015 budget:
Change ($000's)Explanation of Changes in Revenue
Revenue impact of reduced water consumption. Water consumption forecast has been reduced from 41.0M m3 in 2014 to 40.1M m3 in 2015 as a result of the continuing trend of water conservation.
(900)
7% rate increase for 2015
Total Change in Revenues
810
5,515
Change in other revenues, primarily due to an adjustment to the budget for hauled liquid waste disposal revenues to reflect recent billing trends. 25
4,655
Impact of year 3 of the three year phase-in of the new Storm Drainage Charges approved as part of the new water and wastewater rate structure implemented March 1, 2013.
Revenue impact of revised categorization of customer accounts due to exemptions from the Wastewater Infrastructure Charge and property size classification for Storm Drainage Charge calculation purposes.
(795)
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Wastewater and Treatment 2015 Budget and Forecast
Expenditure Budget Overview
The following chart outlines the key factors driving the $4.65M (5.5%) increase in expenditures in the approved 2015 budget:
Capital Plan Overview
The Wastewater Service Area remains proactive with initiatives to ensure that this service continues to meet the demands and expectations of customers. Existing infrastructure requires significant renewal (replacement and rehabilitation) work to ensure that future generations and businesses are not faced with a wastewater system that is failing, unreliable and expensive to maintain. The City of London’s State of the Infrastructure Report 2013 identified a forecasted $22.8 million infrastructure gap in 10 years if not appropriately
371
68
237
(294)
382
3,027
1,820
(574)4,273 4,655
Increase in administrative costs, driven primarily by a 1.9% inflationary increase in the charges to Wastewater for corporate administrative services.
Increase in equipment and purchased services budgets, primarily due to increased ash disposal and trucking costs reflecting the increased usage of the ash basin in recent years.
Change ($000's)Explanation of Changes in Expenditures
Decrease in cost of debt servicing related to previously approved capital projects.Capital Related Subtotal
Total Change in Expenditures
Operating Related Subtotal
Increase in capital levy required to fund the life cycle renewal budget. This increase is necessary in order to progress towards achieving the target of 75% of future life cycle projects funded on a pay-as-you-go basis.
Increase in contributions to reserve funds to reflect changes to the 20 year plan and objective of maintaining sufficient reserve fund balances to support an estimated asset base of $4 billion.
Decrease in materials and supplies costs, due to a decrease in the budgeted chemical requirements at the wastewater treatment plants based on a review of the 3 year average chemical usage at these facilities.
Increase in personnel costs attributable to wage, salary & benefits adjustments in accordance with existing employment agreements. Included in the increase is $175,000 for two new positions in the Stormwater Management Unit to manage the increase in stormwater management facilities to be constructed in the next 10 years in accordance with the 2014 DC Study and GMIS.
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Wastewater and Treatment 2015 Budget and Forecast
addressed. The Wastewater 20 Year Plan reflects the investment required to address the infrastructure gap.
The following chart highlights the 2015 capital plan and forecast for 2016-24:
Category 2015 Total 2016-2024 Total Lifecycle4 $25.6M $261.8M Growth5 $42.1M $222.5M
Service Improvement6 $9.8M $128.6M The 2015 capital plan breaks down into the following categories of spending:
Category 2015 Approved Budget Sewers $44.5M Pollution Control Plants & Pumping Stations $10.2M Stormwater Management Facilities $22.2M Other Miscellaneous Capital Projects $0.7M TOTAL $77.6M
Highlights of the 2015 capital plan are discussed in further detail below:
Lifecycle 2015 Approved Budget 2016-2019 Forecast 2020-2024 Forecast
$25.6M $111.5M $150.2M
• ES2414-15 Sewer Replacement Program (10 Year Program Forecast: $153.9M) – The sanitary and storm infrastructure lifecycle renewal program is an annual program intended to manage and ultimately maintain our sewer infrastructure at acceptable service levels. The program is integrated with other service areas within the organization for cost effectiveness and utilizes best management practices in an effort to return functionality to a wastewater system or subsystem. Systematic reinvestment in this aging infrastructure is critical to maintaining its functionality to meet the needs of local communities. The decision-making process for determining the proper balance of repair, renewal, and replacement is a function of the condition assessment, the lifecycle cost of the various rehabilitation options and the related risk reductions. Sewers are generally replaced on a priority basis, based on age, material, condition and capacity. Replacement of combined sewers is also a high priority. Sewers suited to remediation
4 Replacement or rehabilitation of existing infrastructure. 5 Provision of new services to growth areas of the city. 6 Initiatives to enhance the efficiency and/or effectiveness of services provided.
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Wastewater and Treatment 2015 Budget and Forecast
are spot repaired in conjunction with other service and utility upgrades in selected areas.
• ES2693-15 Specialized Sewer Repairs (10 Year Program Forecast: $43.5M) – Innovative technologies are used to replace or repair infrastructure at a reduced cost. Sewer relining uses a polymer soaked felt tube cured by steam or hot water to create a new pipe within the old pipe without expensive and disruptive excavation. The work takes about 5 hours per sewer run (100 m) and consists of lining the sewer with a 1 cm to 2 cm thick polymer lining and then cutting the service connections with a track mounted robot. Sanitary service connections are blocked during this time which requires residents to minimize water usage. Both storm and sanitary sewers can be relined in full or in short sections which adds 50 years to their lifespan. The City also undertakes relining and other trenchless methodologies for manhole repairs, sewer spot repairs and watermain relining. The benefits of trenchless technologies are the capital cost savings because the road does not need to be excavated, the minimized social cost in terms of disruption (i.e. 1 day as opposed to 4 months), and the environmental benefit of not requiring new materials. Wastewater and Treatment is proactively relining sanitary and storm pipes greater than 100 years old that are suitable for relining. In addition there are 7.7 km of old brick sewers that have been analyzed and prioritized to be addressed over the next 15 years. Pipes in the 80 to 100 year period that are currently in good condition will be carefully monitored to ensure that appropriate pipes are relined at the right time. This will significantly improve the life expectancy of the City’s oldest pipes enabling the City to defer associated reconstruction costs for many years. Administration continues to explore “cutting edge” trenchless technologies with the primary goal of passing along cost savings to the citizens of London.
• ES2532-15 Stormwater Management Facility Rehabilitation Program (10 Year Program Forecast: $10.6M) – Unlike watermains, sewers and roads, stormwater management facilities are a relatively new type of asset for the City of London. However, similar to watermains, sewers and roads, stormwater management facilities require their own maintenance and rehabilitation program to maintain optimal performance and compliance with regulations. In 2010, an external consultant was engaged to prepare a report on the status of the City’s assumed stormwater management facilities. This report, coupled with experience gained over the past 4 years regarding individual facility attributes has given the Sewer Operations Division a greater understanding of the specific maintenance requirements of the existing stormwater management facilities. Documentation has been prepared for each facility (associated maintenance costs, level of time and effort required to maintain, etc.) and 2 full rehabilitations have been completed, which confirms the actual costs associated with stormwater management facility rehabilitations. Based on the knowledge gained over the past 4 years, Sewer Operations has developed a stormwater management facility rehabilitation model which
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Wastewater and Treatment 2015 Budget and Forecast
projects the maintenance requirements for the next 20 years. This model, combined with the cost history from the 2 recent rehabilitations, forms the basis for the 2015 budget submission and 10 year forecast. From 2015 to 2024, Sewer Operations expects to complete 38 facility rehabilitations. The total cost of stormwater management facility rehabilitations is estimated at $10.625 million through 2024, up from the $4.45 million 10-year forecast in the 2014 approved Wastewater and Treatment budget. Given the recent knowledge gains in rehabilitating stormwater management facilities, it is anticipated that the average cost of rehabilitations will continue to decline as more history and experience is gained in this type of work. However, it is critical that sufficient funds are budgeted to support the rehabilitation and ongoing maintenance of this critical infrastructure.
Growth 2015 Approved Budget 2016-2019 Forecast 2020-2024 Forecast
$42.1M $140.8M $81.6M
• ES5247 Wonderland Road South Trunk Sewer & ES5260 Lambeth Southland Servicing Solution (2015 Approved Budget: $10.8M) - In accordance with the 2014 Growth Management Implementation Strategy (GMIS), the first phase of implementing the Southwest Area Sanitary Servicing Master Plan involves construction of two sections of trunk sanitary sewer. ES5247 involves the construction of 826 m of sewer on Wonderland Road South from Dingman Drive to Hamlyn Street. ES5260 funds the construction of 1,320 m of sewer on Hamlyn Street from Wonderland Road South to Campbell Street. These two sections represent a total length of over 2 km of sanitary sewer which will effectively connect the Lambeth, North Lambeth and North Talbot
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Wastewater and Treatment 2015 Budget and Forecast
neighbourhoods to the Wonderland Pumping Station. These sewers will also allow for the opportunity for servicing the Wonderland Enterprise Corridor from approximately Dingman Drive to Exeter Road. Furthermore, from a non-growth perspective, the trunk sewers will enable future decommissioning of the Southland Wastewater Treatment Plant, which presently has operational costs up to 13 times higher than other City of London wastewater treatment facilities and is sensitive to loading because of its small size.
Industrial Land Development Strategy (10 Year Forecast: $55.7M)
For more than 40 years, the City of London has been engaged in developing industrial land. This work supports City Council’s priority of ‘A Strong Economy’ by attracting investment and jobs to London. Council’s 2011-2014 Strategic Plan specifically recognizes the importance of industrial land to London’s prosperity. Council directed the Civic Administration to develop a comprehensive strategy to guide industrial land development efforts. In March 2014, the Municipal Council adopted an Industrial Land Development Strategy (ILDS).
The estimated cost for land servicing in the first of two phases of the Industrial Land Development Strategy over the next 5 years is $120 million. The City of London is to contribute $40 million and is requesting $40 million from each of the federal and provincial governments, a three-way split, to support this strategy. Of the $120 million estimated total servicing cost for the first phase of the ILDS, $18.8 million has been earmarked for sanitary and storm servicing works in the Wastewater 5 year capital plan, while an additional $20.0 million has been included for stormwater management facilities to specifically support the ILDS initiative. One-third of these costs will be funded in the Wastewater Budget through Wastewater rates. A
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Wastewater and Treatment 2015 Budget and Forecast
further $16.9 million for sanitary, storm and SWM servicing is included in the capital plan for the second phase of the ILDS beyond 5 years. Should funding from the federal and provincial governments not be available or not be provided to the extent envisioned, the capital plans will be adjusted accordingly to accommodate the funding available for the ILDS program.
Service Improvement 2015 Approved Budget 2016-2019 Forecast 2020-2024 Forecast
$9.8M $48.3M $80.3M
Pollution Control Plants Flood Proofing Works (10 Year Forecast: $11.2M)
On April 28, 2014, Civic Works Committee received a report concerning changes to the flood insurance deductibles at the wastewater treatment facilities. In a recent insurance renewal proposal, the deductible for four locations was increased to 3% of the insured value of the facility, or $500,000, whichever was greater. The resulting deductible values would range from $500,000 to almost $9 million per facility. The previous policy carried a $200,000 deductible for each site. To maintain a $200,000 deductible the City was advised that an additional annual premium of $1.25M would be required.
In lieu of incurring the higher annual insurance premium, it was determined that continued investments in flood proofing infrastructure to minimize the flooding risk at the City’s Wastewater Treatment facilities was a more cost effective option. In the 2014 budget, $8.0 million was included for flood proofing of Greenway Wastewater Treatment Plant starting in 2017. As part of the 2015 budget, a portion of these funds have been accelerated to 2015 and 2016 in order to commence the initial stages of these works. Additionally, a total of $3.2 million
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Wastewater and Treatment 2015 Budget and Forecast
has been added to the capital plan for flood proofing works at Vauxhall Wastewater Treatment Plant starting in 2016.
The requirements and scheduling of flood proofing work needed at other plants is being considered in the Wastewater Treatment Optimization Plan.
Wastewater Treatment Optimization (10 Year Forecast: TBD)
Wastewater treatment plant expansion projects have historically driven plant improvement projects. However, most of the wastewater treatment facilities in London are not slated for expansion in the next 20 years; growth needs are being accommodated by the decreasing trend in water demands. Notwithstanding this, plant capacity performance is still an issue for other reasons:
• For wet weather / combined sewer overflow (CSO) treatment; • To allow for significant asset reconstruction due to age and condition; • To meet more stringent effluent criteria in the future; and, • For new initiatives (e.g. ILDS) which may constrain capacity.
Building new wastewater treatment capacity is expensive and speculative given the difficulty of projecting future flows and the effects of water conservation across the system. A guideline for new treatment capacity is in the range of $2.6-$3.3 million/MLD based on the present Greenway Wastewater Treatment Plant expansion. Major expansions and upgrades typically require significant up-front work including approvals and engineering which must be initiated well in advance of the actual need. Optimization of existing works may allow smaller and more targeted works which can add capacity in smaller increments. These projects can be planned and budgeted accordingly. Some optimizations may be as simple as applying for re-rating of existing facilities while others will involve removal of bottlenecks and smaller capital projects. Once the potential capacity has been identified it can be used to coordinate other works including those involving common processes allowing an integrated design for all anticipated works. Asset reconstruction, for example, will reduce treatment capacity while the repairs are underway, and can only be done if sufficient capacity remains available. A robust and flexible treatment system with the ability to transfer flows between plants will help provide the capacity needed to complete these repairs with significant savings in comparison to new construction.
A preliminary capacity/optimization study for the Adelaide, Oxford, Pottersburg and Vauxhall plants was undertaken in 2013. It reviewed possible optimization of the existing sewage treatment processes. The next step will focus on the wet weather flows at these plants and the potential average daily flow capacity available by reducing the peaking factors. Further
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Wastewater and Treatment 2015 Budget and Forecast
steps will integrate results with other plant needs. In short, the optimization process will involve the following steps:
• Identify performance enhancement opportunities (done) • Plant testing and modeling to quantify the opportunity (next step) • Wet weather performance (next step) • Integrate other plant needs for flood proofing, asset management (physical
infrastructure), future effluent criteria and energy efficiency (future step) • Develop changes to capital and operating budget forecasts (future step)
While existing budgets are in place in anticipation of some of the outputs of the optimization strategy (e.g. flood proofing works noted above, replacement of equipment annual programs, etc.), it is anticipated that additional capital investment will be necessary pending the results of the optimization process. New and arising issues for treatment plants that could be included in future capital forecasts are reducing chemical and energy use (i.e. costs), and flood proofing works at other plants. It is therefore critical that financial flexibility (e.g. sufficient reserve fund balances, adequate debt capacity, etc.) be maintained to accommodate these future capital needs.
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Wastewater and Treatment 2015 Budget and Forecast
Future Regulations
In August 2007, the Ontario Ministry of the Environment and Climate Change (MOECC) filed the Regulation and Guidelines for the Safe Drinking Water Act, 2002 Financial Plans requirement (O. Regulation 453/07). This adds to the requirements of PSAB 3150 (Public Sector Accounting Board) for the tracking of tangible capital assets and requires utilities to not only track assets but to also ensure the adequate funding of replacements. The Water Opportunities Act 2010 includes requirements to have sewer utilities follow suit and move to truly sustainable systems and to ensure that the infrastructure gap is ultimately eliminated.
The Wastewater and Treatment area is preparing for a new wave of Canada-wide effluent criteria. Effluent discharge objectives will be determined within the next five years for receiving waterways. Monitoring will be required for an array of parameters including acute and chronic toxicity. Although London is fortunate to have plants that already surpass virtually all of the new standards, a position many other municipalities are now under pressure to meet, staff continue to proactively review all pending changes in regulations to ensure compliance can be maintained in the future.
Federal criteria also have an impact on the way the City manages its combined sewers. By Federal estimates the national cost for sewer separation is $15 billion (and this is thought to be on the low side). London’s cost to separate sewers has yet to be determined and in large part will be additional costs to the 20 year plan. Until the exact parameters and limits are defined, additional work and related costs needed to meet the new reality cannot be determined. As stricter regulations are imposed, the existing system grows larger and older and as maintenance costs escalate, extending the lifecycle and improving the performance of the existing infrastructure will become essential to addressing the infrastructure gap.
The City is developing a Pollution Prevention and Control Plan (PPCP) to provide a “road map” for the phased implementation of infrastructure projects that will mitigate the impacts of combined sewer overflows (CSO’s) and bypasses to the Thames River. The PPCP will align with the City’s commitment to environmental stewardship and the protection of water resources and is following the Municipal Class Environmental Assessment Master Plan process with public, agency, stakeholder and First Nation consultation. Phase 1 established a priority ranking of CSO and bypass discharge points through a review of Thames River historical benthic studies, water quality, CSO and bypass discharge points, and flow monitoring data. Phase 2 (in progress) will include Thames River characterization, hydrologic and hydraulic modeling, and development of a long and short list of CSO and bypass control alternatives. Phase 3 will evaluate alternatives and select preferred solutions resulting in a 20 year implementation plan and completion of the Master Plan. The PPCP will be completed in its entirety in 2-3 years and will be submitted to Council for approval.
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Wastewater and Treatment 2015 Budget and Forecast
This budget supports the above noted requirements and challenges, and many others, while managing the utility’s revenue and the City’s debt strategy. The proposed direction continues to position London to reach infrastructure sustainability. Through a sound proactive business approach, rate increases can be managed, imposing the least impact on affected rate payers. Acquiring the appropriate level of financing to meet current legislative requirements and support routine operations, maintenance and replacement programs is imperative to public health, safety and environmental protection.
Future Forecasted Rate Increases
The Wastewater service area is poised to achieve financial sustainability – future rate increase forecasts at or near the rate of inflation with appropriate use of debt financing, adequate reserves and appropriate investment in capital – in accordance with the rate forecast endorsed by Council during 2013 budget deliberations and confirmed in the 2014 budget. Consistent with the forecast presented in the 2014 Wastewater Budget, a 7% increase is required for 2015, with inflationary-level increases forecasted for 2016 and beyond (currently anticipated to be around 3%) based on the information currently available. As noted above, there are a number of factors influencing the 2015 Wastewater budget and forecasts which may have a positive or adverse impact on future rates.
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Wastewater and Treatment 2015 Budget and Forecast
Conclusion
The City of London’s sanitary and storm drainage systems have a replacement value of approximately $4.0 billion. Many components of the system are at or beyond their anticipated service life. The major challenge is the work that must be undertaken to properly sustain, improve and grow the system through operating and capital funding.
A well-managed sewerage system supports the health, well-being and prosperity of our urban community, and is an integral part of the City’s strategic priorities regarding A Green & Growing City, A Sustainable Infrastructure and A Strong Economy. Becoming financially sustainable provides value for future generations and stable rate increases for current customers.
The approved 2015 Wastewater and Treatment budget presents a balanced cost/revenue plan in the amount of $89.18 million based on a 7% rate increase for 2015, consistent with the financial sustainability plan endorsed by Council during the development of the 2013 budget and confirmed during 2014 budget deliberations. This will result in an increase of $29/year for the average residential customer.
At just $1.30/day for the average residential customer, the approved 2015 Wastewater and Treatment Budget ensures:
• Compliance with regulatory requirements; • Capital investments in existing and future growth needs; • Efficiency measures, now and in the future; • Sound Financial Management; and, • Achieving financial sustainability in 2016:
o Move towards a sustainable infrastructure; o Reserve fund balances approaching more adequate levels; and o Financial flexibility to accommodate future needs
21
Wastewater and Treatment
2015 Operating Budget
With Forecasts
($000's) %
2015 Approved Budget $89,184
2014 Approved Budget $84,529
Increase Over 2014 Budget $4,655 5.5%
1.5%
Total Rate Increase 7.0%
Wastewater and Treatment
($000's)
2015 Budget Highlights
Impact of Reduced Water Consumption & Phase-in of Storm Charges
Wastewater Usage
Charges, 46%
Wastewater Infrastructure Charges, 21%
Storm Drainage
Charges, 27%
Other Revenues, 6%
Revenue Budget $89,184
Administrative Expenses, 3%
Billings & Customer
Service, 2%
Purchased Services, 3%
Materials & Supplies, 11%
Equipment & Rentals, 4%
Personnel Costs, 17%
Capital Funding & Debt
Servicing, 60%
Expenditure Budget $89,184
22
2013 2014 2015 Change Prior
Actuals Revised Approved from Year
Budget Budget 2014 Change
Revenues
Sanitary Sewer System Charge 11,233
Wastewater Usage Charge (1) 28,212 39,237 41,019 1,782 4.5%
Wastewater Infrastructure Charge (1) 13,023 17,813 18,751 938 5.3%
Storm Drainage System Charge 19,012 22,220 24,129 1,909 8.6%
Other Revenues 5,382 5,259 5,285 26 0.5%
Total Revenues 76,862 84,529 89,184 4,655 5.5%
Operating Related
Personnel Costs 13,880 14,775 15,146 371 2.5%
Administrative, Other & Recovered Expenses 1,879 2,305 2,373 68 3.0%
Billings & Customer Service 2,084 2,081 2,081 0 0.0%
Purchased Services 3,096 2,990 3,070 80 2.7%
Materials & Supplies 9,026 10,392 10,098 (294) -2.8%
Equipment & Rentals 2,963 3,084 3,241 157 5.1%
Total Operating Related 32,928 35,627 36,009 382 1.1%
Financial Expenses
Debt Servicing Costs 11,380 13,687 13,113 (574) -4.2%
Contribution to Reserve Funds (2) 20,863 23,615 26,642 3,027 12.8%
Capital Levy 11,691 11,600 13,420 1,820 15.7%
Total Financial Expenses 43,934 48,902 53,175 4,273 8.7%
Total Expenditures 76,862 84,529 89,184 4,655 5.5%
(2) Includes contributions to reserves for Economic Development, Local Improvements and Self Insurance.
Object of Expenditure and Source of Revenue
Wastewater and Treatment
2015 Object of Expenditure and Source of Revenue Summary
($000's)
(1) Reflects revised categorization of revenue accounts after the implementation of the new rate structure effective March 1, 2013.
23
Wastewater and Treatment
2015 Operating Program Budget Summary
($000's)
2013 2014 2015 Change Prior
Actuals Revised Approved from Year
Budget Budget 2014 Change
Total Revenues 76,862 84,529 89,184 4,655 5.5%
Engineering & Operations
Wastewater & Drainage Engineering & Stormwater Management 2,485 2,652 2,820 168 6.3%
Sewer Operations 7,764 8,434 8,489 55 0.7%
Wastewater & Treatment Operations 17,761 19,431 19,413 (18) -0.1%
General Administration 2,834 3,029 3,206 177 5.8%
Billings & Customer Service 2,084 2,081 2,081 0 0.0%
Total Engineering & Operations 32,928 35,627 36,009 382 1.1%
Total Capital Contribution & Financial Expenses 43,934 48,902 53,175 4,273 8.7%
Total Expenditures 76,862 84,529 89,184 4,655 5.5%
Program
24
7% rate increase for 2015
Total Change in Revenues
810
5,515
Change in other revenues, primarily due to an adjustment to the budget for hauled liquid waste
disposal revenues to reflect recent billing trends.25
4,655
Impact of year 3 of the three year phase-in of the new Storm Drainage Charges approved as
part of the new water and wastewater rate structure implemented March 1, 2013.
Revenue impact of revised categorization of customer accounts due to exemptions from the
Wastewater Infrastructure Charge and property size classification for Storm Drainage Charge
calculation purposes.
(795)
Wastewater and Treatment
Overview of Program Changes - Revenue
($000's)
Change
($000's)Explanation of Changes in Revenue
Revenue impact of reduced water consumption. Water consumption forecast has been
reduced from 41.0M m3 in 2014 to 40.1M m
3 in 2015 as a result of the continuing trend of
water conservation.
(900)
25
371
68
237
(294)
382
3,027
1,820
(574)
4,273
4,655
Decrease in cost of debt servicing related to previously approved capital projects.
Capital Related Subtotal
Total Change in Expenditures
Wastewater and Treatment
Operating Related Subtotal
Increase in capital levy required to fund the life cycle renewal budget. This increase is necessary
in order to progress towards achieving the target of 75% of future life cycle projects funded on a
pay-as-you-go basis.
Increase in contributions to reserve funds to reflect changes to the 20 year plan and objective of
maintaining sufficient reserve fund balances to support an estimated asset base of $4 billion.
Decrease in materials and supplies costs, due to a decrease in the budgeted chemical
requirements at the wastewater treatment plants based on a review of the 3 year average
chemical usage at these facilities.
Increase in personnel costs attributable to wage, salary & benefits adjustments in accordance with
existing employment agreements. Included in the increase is $175,000 for two new positions in
the Stormwater Management Unit to manage the increase in stormwater management facilities to
be constructed in the next 10 years in accordance with the 2014 DC Study and GMIS.
Increase in administrative costs, driven primarily by a 1.9% inflationary increase in the charges to
Wastewater for corporate administrative services.
Increase in equipment and purchased services budgets, primarily due to increased ash disposal
and trucking costs reflecting the increased usage of the ash basin in recent years.
Change
($000's)
Overview of Program Changes - Expenditures
($000's)
Explanation of Changes in Expenditures
26
Revenue
Operating Expenditures
Wastewater and Treatment
Four Year Operating Forecast
Rate increases of 7% in 2015 and 3% thereafter have been incorporated into the 20 Year Sewer System Plan.
While the declining water consumption trend helps to postpone future works, it continues to place significant
pressure on the City’s capacity to raise funds to operate, maintain and improve the existing system. The
implementation of the new rate structure in 2013 partially offsets declining consumption by shifting a greater
portion of total revenues to fixed charges. However, the City remains heavily dependent on water consumption
to generate sufficient revenues. The projected rate increases are offset by an anticipated average annual net
consumption reduction of 1% per year until 2021. An average net consumption increase of 0.75% per year is
then forecasted until 2034. Deviations from these projections, changes to the economic climate or legislative
requirements may result in modifications to the 20 Year Sewer System Plan to ensure sustainability is achieved
and maintained.
Fixed revenue streams (Wastewater Infrastructure Charge, Storm Drainage Charge, etc.) are forecasted to
increase at 1% per year in addition to the proposed rate increase for each respective year due to growth in the
number of customer accounts.
For 2016 to 2019, operating expenditures are projected to increase at an average annual rate of 1.7% per year.
The main driver of these increases is electricity costs, which are expected to increase by a total of 25% by 2019,
assuming these costs are not curbed by further energy efficiency projects. Natural gas costs are also expected
to rise by 35% by 2019, adding further pressure to operating expenditures.
27
Capital Financing
The lifecycle renewal program is to be 52% funded by capital levy in 2015. This type of "pay as you go"
financing is projected to gradually increase to 75% by 2018. Achieving the 75% target is consistent with the
objective of ensuring that lifecycle renewal projects are not funded through debt.
Contributions to reserve funds will change depending on the timing of capital projects identified in the 20 Year
Sewer System Plan. It is imperative that adequate reserve fund balances be maintained to support an asset
base with an estimated replacement value of at least $4 billion.
The 1.7% average annual increase is lower than various inflationary indicators published by the Bank of Canada
and other financial institutions (most forecasting a long-term inflationary target of 2%/year) and aligns with the
objective of maintaining operating-related increases at or below approximately 2%/year. With construction cost
increases traditionally averaging approximately 4%/year over the past 10 years according to the Non-Residential
Building Construction Price Index (NRBCPI), maintaining operating-related increases at 2%/year is critical to
maintaining an overall blended increase of 3%/year.
28
2015 2016 2017 2018 2019
Approved Budget Budget Budget Budget
Budget Forecast $ % Forecast $ % Forecast $ % Forecast $ %
Sewer Rate Increase Forecast 7.0% 3.0% 3.0% 3.0% 3.0%
Revenues
Wastewater Usage Charge 41,019 41,936 917 2.2% 42,863 927 2.2% 43,804 941 2.2% 44,534 730 1.7%
Wastewater Infrastructure Charge 18,751 19,500 749 4.0% 20,278 778 4.0% 21,087 809 4.0% 21,929 842 4.0%
Storm Drainage System Charge 24,129 25,101 972 4.0% 26,113 1,012 4.0% 27,165 1,052 4.0% 28,260 1,095 4.0%
Other Revenues 5,285 5,419 134 2.5% 5,557 138 2.5% 5,700 143 2.6% 5,847 147 2.6%
Total Revenues 89,184 91,956 2,772 3.1% 94,811 2,855 3.1% 97,756 2,945 3.1% 100,570 2,814 2.9%
Engineering & Operations
Wastewater and Drainage Engineering &
Stormwater Management2,820 2,824 4 0.1% 2,828 4 0.1% 2,834 6 0.2% 2,841 7 0.2%
Sewer Operations 8,489 8,631 142 1.7% 8,734 103 1.2% 8,826 92 1.1% 8,962 136 1.5%
Wastewater & Treatment Operations 19,413 19,654 241 1.2% 19,979 325 1.7% 20,526 547 2.7% 21,179 653 3.2%
General Administration & Financial Expenses 3,206 3,168 (38) -1.2% 3,241 73 2.3% 3,405 164 5.1% 3,489 84 2.5%
Billings & Customer Service 2,081 2,081 0 0.0% 2,081 0 0.0% 2,081 0 0.0% 2,081 0 0.0%
Total Engineering & Operations 36,009 36,358 349 1.0% 36,863 505 1.4% 37,672 809 2.2% 38,552 880 2.3%
Capital Contribution & Debt Servicing
Debt Servicing Costs 13,113 13,009 (104) -0.8% 12,848 (161) -1.2% 12,136 (712) -5.5% 12,008 (128) -1.1%
Contribution to Reserve Funds 26,642 27,039 397 1.5% 28,100 1,061 3.9% 30,092 1,992 7.1% 29,509 (583) -1.9%
Capital Levy 13,420 15,550 2,130 15.9% 17,000 1,450 9.3% 17,856 856 5.0% 20,501 2,645 14.8%
Total Capital Contribution & Debt Servicing 53,175 55,598 2,423 4.6% 57,948 2,350 4.2% 60,084 2,136 3.7% 62,018 1,934 3.2%
Total Expenditures 89,184 91,956 2,772 3.1% 94,811 2,855 3.1% 97,756 2,945 3.1% 100,570 2,814 2.9%
Incr./(Decr.)
Over 2018
Wastewater and Treatment
Four Year Operating Forecast
($000's)
Program
Incr./(Decr.)
Over 2015
Incr./(Decr.)
Over 2016
Incr./(Decr.)
Over 2017
29
2013 2014 2015 2016 2017 2018 2019
Performance Measures Actual Revised Approved
Activity Measures
Volume of wastewater treated (billion litres) 76.2 85.8 86.7 87.7 88.6 89.4 90.3
Percentage of sewer system replaced/rehabilitated/relined 1.3% 1.5% 1.3% 1.4% 1.4% 1.4% 1.4%
Number of PDC's replaced (1)
58 75 75 75 75 75 75
Percentage of sanitary sewer system flushed (2)
86% 86% 81% 76% 67% 67% 67%
Percentage of stormwater management facilities rehabilitated (3)
8.3% 16.6% 10.0% 3.3% 3.3% 13.3% 13.3%
Efficiency Measures
Average annual costs for residential customers (4)
$428 $446 $475 $489 $504 $519 $535
Residential consumption (m3 per year) 176.3 171.9 168.9 167.1 165.2 163.3 161.6
% BOD (Bio-chemical oxygen demand) removed - treatment 99% 99% 99% 99% 99% 99% 99%
Effectiveness / Quality / Satisfaction Measures
Percentage of flooding complaints addressed 100% 100% 100% 100% 100% 100% 100%
Compliance - # of MOE effluent violations (5)
6 1 1 1 1 1 1
Number of blocked sewers per 100km length 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Percentage of stormwater management facilities constructed as per
the “Just in Time” Design and Construction ProcessN/A N/A 100% 100% 100% 100% 100%
Staffing Budget Budget
Full-time Equivalents # 173.9 172.9 175.5 175.5 175.5 175.5 175.5
Increase / (Decrease) over previous year (1.0) 2.6 0.0 0.0 0.0 0.0
Full-time Employees # (6) 162 161 163 163 163 163 163
Increase / (Decrease) over previous year (1.0) 2.0 0.0 0.0 0.0 0.0
NOTES:
(1) Sewer Operations only.
(2) Current level of service requires the sanitary sewer collection system to be completely flushed once every 2 years.
(3) Based on 30 existing stormwater management facilities.
(5) Not necessarily indicative of a risk to public health.
Forecast
Wastewater and Treatment
Performance Measures and Staffing
(4) The average cost per household estimate for 2015 - 2019 is based on 2014 forecasted consumption of 171.9 m3
and does not incorporate future projected
consumption declines. Actual cost per household may be lower as a result.
(6) Increase in full-time employees is for 2 new positions to support the Stormwater Management Unit. A business case has been prepared to support this request.
30
Wastewater and Treatment
2015 Capital Budget
With Forecasts
Service Grouping: Wastewater and Treatment 2015 Approved -
Committee: Civic Works Committee 2016-2019 Forecast -
Objective:
Page
NumberProject Number Project
37 ES1825-15 Sewer Video Inspection (CCTV) 400
69 ES2092-15 Sump Pump Grant Program 100
69 ES2108 Thames River Clear Water Revival 30
44 ES2204 Colonel Talbot Pumping Station 600
37 ES2414-15 Sewer Replacement Program 11,422
70 ES2442-15 Extension of Sanitary Services 200
70 ES2464-15 Separation and CSO Program 1,480
70 ES2468 Problematic Sump Pump Discharge Program 200
71 ES2469 Southland Pollution Control Plant Conversion 1,550
44 ES2494 North Talbot Sanitary Sewer Extension (SS15A) 557
38 ES2523-15 Sewer Construction, Extensions and Repairs 800
38 ES2532-15 Stormwater Management Facility Remediation Program 1,000
38 ES2693-15 Specialized Sewer Repairs 3,700
71 ES3054 Burbrook Trunk Storm Sewer Phase IV 4,800
72 ES3059 Dayus Creek Trunk Storm Sewer Replacement 400
38 ES3067 Trunk Sewer Condition Assessment 150
39 ES3080 Greenway Incinerator Refurbishment 2,875
45 ES3083 Infill & Intensification Corridors Sanitary Sewer Servicing 250
Life Cycle
RenewalGrowth
Service
Improvement
Wastewater and Treatment
Capital Program
($000's)
77,562$
300,701$
The Wastewater and Treatment capital program addresses life cycle renewal, growth and service improvement needs within the City’s
pollution control plants, pump stations, and sanitary and stormwater collection systems. The elements in this program are generally
identified through the sewer inspection program, known deficiencies as addressed by the appropriate engineering studies and documents
such as the Sanitary and Storm Sewerage Master Plans aligned with the principles of the 20 Year Sewer System Plan.
31
Service Grouping: Wastewater and Treatment 2015 Approved -
Committee: Civic Works Committee 2016-2019 Forecast -
Wastewater and Treatment
Capital Program
($000's)
77,562$
300,701$
Page
NumberProject Number Project
39 ES3094 Greenway Section 1 Aeration Refurbishing 500
72 ES3097 Vauxhall and Pottersburg Pumping Stations and Forcemains 945
72 ES3098Greenway Wastewater Treatment Plant Flood Proofing and Effluent
Pumping Station100
40 ES3106Commissioners Road Sewer Replacement (Viscount Road to
Wonderland Road)800
40 ES3112 Flow Monitor Equipment Replacement 50
45 ES4410 Funding of Exemptions for Sanitary and Storm 225
46 ES5016 Wonderland Pumping Station Optimization 500
40 ES5084-15 Replacement Equipment Wastewater Treatment Plants 750
47 ES5145 Sanitary Sewer Internal Oversizing Subsidy 165
47 ES5146 Infill & Intensification Nodes Sanitary Sewer Servicing 243
48 ES5147 Sanitary Industrial Servicing 500
41 ES5150-15 Pumping Station Improvements 420
49 ES5247 & ES5248 Wonderland/Wharncliffe Road South Trunk Gravity Sewer 4,057
50 ES5252 Kilally South Trunk Sanitary Sewer 200
50 ES5253 Riverbend Trunk Sanitary Sewer Extension 405
50 ES5256 Exeter Road Trunk Sanitary Sewer (SS12B) 605
51 ES5260 Lambeth Southland Servicing Solution (SS3A) 6,741
41 ES5419 Asset Management of the Sewer System 320
52 ES5428 Infill & Intensification Nodes Storm Sewer Servicing 689
52 ES5429 Storm Sewer Internal Oversizing Subsidy 1,736
53 ES5520 Community Growth Trunk Storm Sewer Works 758
Life Cycle
RenewalGrowth
Service
Improvement
32
Service Grouping: Wastewater and Treatment 2015 Approved -
Committee: Civic Works Committee 2016-2019 Forecast -
Wastewater and Treatment
Capital Program
($000's)
77,562$
300,701$
Page
NumberProject Number Project
42 ES6074Pottersburg Wastewater Treatment Plant CSO and Inlet Works
Upgrade2,000
53 ES6090 Storm Industrial Servicing (Trunk and Internal Oversizing) 2,600
54 ID2058 Innovation Park - Sewer Oversizing Works 550
42 ES2428-15Erosion Remediation in Open Watercourses Management and
Reclamation440
55 ES2681 Mud Creek Erosion and Flooding Remediation Works 2,414
55 ES2688 Mud Creek Remediation South 40
56 ES3021 Land (Expropriation Negotiations) 100
56 ES3022 Contingency Facility 416
57 ES3202 Dingman On-line Stormwater Management Flood Control Facility #2 560
57 ES3203 Hyde Park - Stanton Drain Phase II 288
59 ES3209Stormwater Unidentified Municipal Class Environmental Assessment
Addendums50
59 ES5425 Interim Works as Identified in Environmental Assessment 200
59 ES5427 Pre-Assumption Monitoring 400
60 ES6095 Stormwater Management Industrial Servicing 5,002
60 ESSWM-DCB4 SWM Facility - Dingman Creek No. B-4 3,419
60 ESSWM-DCNLP9 SWM Facility - Dingman Creek North Lambeth No. P9 263
62 ESSWM-NLP7 SWM Facility - North Lambeth No. P7 250
62 ESSWM-NLP8 SWM Facility - North Lambeth No. P8 250
63 ESSWM-OV1 SWM Facility - Old Victoria No. 1 1,577
Life Cycle
RenewalGrowth
Service
Improvement
Stormwater Management Facilities
33
Service Grouping: Wastewater and Treatment 2015 Approved -
Committee: Civic Works Committee 2016-2019 Forecast -
Wastewater and Treatment
Capital Program
($000's)
77,562$
300,701$
Page
NumberProject Number Project
63 ESSWM-PKR SWM Facility - Parker 655
64 ESSWM-PD3 SWM Facility - Pincombe Drain No. 3 367
64 ESSWM-PD4 SWM Facility - Pincombe Drain No. 4 354
65 ES3020-RVBTC SWM Facility - River Bend Trib 'C' 2,920
65 ESSWM-SC2 SWM Facility - Stoney Creek No. 2 299
67 ESSWM-WO3 SWM Facility - White Oak No. 3 425
68 ESSWM-WO4 SWM Facility - White Oak No. 4 500
Total by Classification
Total 2015 Wastewater & Treatment Capital $77,562
Life Cycle
RenewalGrowth
Service
Improvement
$25,627 $42,130 $9,805
34
Prior
Years
2014 2015 2016 2017 2018 2019
2020 to
2024
Total
Life Cycle Renewal 60,314 19,320 25,627 26,527 32,544 23,808 28,678 150,229 367,047
Growth 67,073 36,953 42,130 52,983 40,809 32,246 14,801 81,636 368,631
Service Improvement 32,196 10,915 9,805 9,480 13,985 11,750 13,090 80,325 181,546
Total 159,583 67,188 77,562 88,990 87,338 67,804 56,569 312,190 917,224
Prior
Years
2014 2015 2016 2017 2018 2019
2020 to
2024
Total
Tangible Capital Asset 154,018 66,653 76,287 88,410 85,858 66,854 55,169 307,940 901,189
Non-Tangible Capital Asset (2)
5,565 535 1,275 580 1,480 950 1,400 4,250 16,035
Total 159,583 67,188 77,562 88,990 87,338 67,804 56,569 312,190 917,224
Wastewater & Treatment
(2) A separate Non-Tangible Capital Asset (Non-TCA) section has been added because Non-TCA projects could be classified as life cycle renewal, growth, or
service improvement. Non-TCA are expenditures that will not result in the creation of a tangible asset (having physical substance). It should be noted that the
Non-TCA summary only includes projects that are 100% Non-TCA.
Wastewater and Treatment
Capital Expenditure Summary by Classification
($000's)
Wastewater & Treatment
1) The 2014 Approved Capital Budget increased from $65.7 million to $67.2 million mainly due to budget increases to two Stormwater Management Facility
projects ($0.8 million), private drain connections, local improvements (homeowner's share) and developer contributions to establish budgets for three
stormwater projects, offset by substituting owners' share with rate supported funding with respect to the Hyde Park Industrial Park ($-1.1 million).
35
Wastewater and Treatment
Prior
Years (1)
2014 2015 2016 2017 2018 2019
2020 to
2024 Totals
RATE SUPPORTED
Sewer Capital Rates 4,953 11,600 13,420 15,550 17,000 17,856 20,501 112,671 213,551
Sewage Works Reserve Fund 53,239 18,270 17,695 18,633 28,975 17,193 17,550 94,509 266,064
Industrial Oversizing Sewer Reserve Fund (2)
2,065 (35) 550 2,580
Sewage Treatment Plant Capacity Reserve Fund 4,226 2,500 6,726
Debenture 24,910 24,910
Debenture (Industrial Oversizing Reserve Fund) 6,030 6,030
Total Rate Supported 95,423 32,335 31,665 34,183 45,975 35,049 38,051 207,180 519,861
NON-RATE SUPPORTED
Debenture - Non Rate Supported (City Services -
Sewer Levies Reserve Fund) (3)
17,751 9,000 5,464 4,838 5,500 26,700 69,253
Debenture - Non Rate Supported (City Services -
Major SWM Levies Reserve Fund) (3)
4,869 6,815 13,725 23,294 8,087 6,551 6,104 27,266 96,711
City Services Sewer Levies Reserve Fund (3)
6,817 6,645 8,491 5,713 6,043 5,307 973 5,600 45,589
City Services Major SWM Levies Reserve Fund (3)
8,677 6,037 7,166 10,547 7,751 6,748 3,792 9,474 60,192
City Services Corporate Services Levies Reserve
Fund (3)
50 50 550 50 418 1,050 2,168
Federal Gas Tax Grant 21,551 5,500 5,500 5,500 5,500 5,500 5,500 27,500 82,051
Senior Government Funding 5,401 4,201 7,268 7,935 1,067 25,872
Other Contributions (Prov Grants, Cash Payments) 4,495 856 100 664 664 664 664 7,420 15,527
Total Non-Rate Supported 64,160 34,853 45,897 54,807 41,363 32,755 18,518 105,010 397,363
Total Sources of Financing 159,583 67,188 77,562 88,990 87,338 67,804 56,569 312,190 917,224
(2) 2014 negative amount reflects change in financing to other rate supported sources.
(3) Growth splits for 2014 and beyond are consistent with the 2014 Development Charges Study.
Wastewater and Treatment
Capital Source of Financing Summary
($000's)
(1) Prior years' totals only include projects with current or future budget allocations.
36
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
400 400 400 400 400 2,000 4,000
2015 Financing: Capital Levy
11,301 11,422 13,572 19,732 12,978 14,378 81,834 165,217
2015 Financing:
Capital Levy $5,260
Reserve Fund 3,412
Federal Gas Tax Grant 2,750
Total Financing $11,422
5,038 1,528 1,600 8,166
Note: * represents projects that are classified as non-tangible capital assets. These expenditures will not result in the creation of a tangible asset (having physical
substance).
The design and construction of replacement sanitary sewers, storm
sewers and private drain connections determined by the City's
Internal Utilities Coordination Committee (UCC) and the needs of
other Engineering Divisions on a priority basis. Sewers are
replaced based on age, material, condition and capacity. Sewers
in need of remediation are either fully replaced or spot repaired in
conjunction with other service and utility upgrades in selected
areas. A video inspection program assists with review and ultimate
selection of specific repairs.
Category: Life Cycle Renewal
ES2473 Gordon Trunk Sewer Rehabilitation
Wastewater and Treatment
Capital Expenditure Detail
($000's)
An annual program to accurately assess the condition of the sewer
system using closed circuit video (CCTV).
* ES1825-15 Sewer Video Inspection (CCTV)
This project is the continuation of several capital projects along the
existing Gordon Trunk sewer where trenchless technology is fully
utilized to rehabilitate this aging pipe rated in poor and
deteriorating condition.
ES2414-15 Sewer Replacement Program
37
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Category: Life Cycle Renewal
Wastewater and Treatment
Capital Expenditure Detail
($000's)
450 800 800 800 1,100 1,100 4,300 9,350
850 1,000 275 275 1,100 1,100 6,875 11,475
4,700 3,700 3,700 4,400 4,700 4,500 22,500 48,200
2015 Financing: Capital Levy
1,510 150 150 150 300 2,260
2015 Financing: Capital Levy
* ES3067 Trunk Sewer Condition Assessment
ES2693-15 Specialized Sewer Repairs
Bi-annual program to assess structural condition and hydraulic
capacity of trunk sanitary and combined sewer systems using
closed circuit television (CCTV) and sonar technology.
2015 Financing: Capital Levy
ES2523-15 Sewer Construction, Extensions and Repairs
An annual program to extend the life of existing sewers using
trenchless technologies. The program includes cured-in-place
pipe (CIPP), internal spot repairs and lining of brick sewers.
2015 Financing: Capital Levy
An annual program that provides ongoing maintenance to
assumed stormwater management facilities on a proactive and
reactive basis.
Note: * represents projects that are classified as non-tangible capital assets. These expenditures will not result in the creation of a tangible asset (having physical
substance).
ES2532-15 Stormwater Management Facility Remediation
Program
An annual program to alleviate existing and potential flooding
conditions through extensions/completion of sewer sections and
repairs. Work is completed in conjunction with the City's local
annual road construction program. This project also includes the
construction of pathways to sewers that are currently inaccessible.
38
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Category: Life Cycle Renewal
Wastewater and Treatment
Capital Expenditure Detail
($000's)
300 500 500 500 2,500 4,300
1,966 390 2,875 1,207 1,000 5,700 13,138
2015 Financing: Reserve Fund
500 2,500 3,000
2015 Financing: Reserve Fund
450 2,550 3,000
ES3094 Greenway Section 1 Aeration Refurbishing
To refurbish the east and west aeration tanks in Section 1 at
Greenway Wastewater Treatment Plant. Project includes
engineering, demolition and reconstruction of walkways, railings,
interior and exterior tank walls and replacement of aeration
process equipment.
ES3074 Trunk Sewer Upgrades
To refurbish the Section 1 aeration tank at the Vauxhall
Wastewater Treatment Plant. Project includes engineering,
demolition and reconstruction of walkways, railings, interior and
exterior tank walls and potential aeration equipment upgrades.
Improvements to trunk sanitary, storm and combined sewers to
accommodate redevelopment and growth while reducing or
eliminating overflows and rehabilitating deteriorating sewers.
To refurbish the incinerator for existing and additional sludge
management capacity at Greenway Wastewater Treatment Plant.
ES3099 Vauxhall Section 1 Aeration Refurbishment
ES3080 Greenway Incinerator Refurbishment
39
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Category: Life Cycle Renewal
Wastewater and Treatment
Capital Expenditure Detail
($000's)
100 800 900
50 50 50 50 50 250
2015 Financing: Capital Levy
350 350
500 750 1,550 1,300 1,300 1,300 8,800 15,500
2015 Financing: Capital Levy
To replace existing sanitary and storm sewers and private drain
connections on Commissioners Road from Viscount Road to
Wonderland Road that are in poor condition. Work to be done in
conjunction with transportation project TS1470 - Road Widening.
2015 Financing: Reserve Fund
Wastewater and Drainage Engineering manages a flow monitoring
program which includes the use of up to 30 flow monitoring loggers
and associated equipment to measure sanitary and/or storm sewer
flows.
To replace storm sewers and improve drainage on Fanshawe Park
Road from Adelaide Street to McLean Drive. Work to be done in
conjunction with transportation project TS1475 - Road Widening
and water project EW3702 - Watermain Replacement.
ES3106 Commissioners Road Sewer Replacement (Viscount
Road to Wonderland Road)
ES3112 Flow Monitor Equipment Replacement
ES5084-15 Replacement Equipment Wastewater Treatment
Plants
Replacement of aged or non-repairable mechanical, electrical and
instrumentation equipment to maintain and upgrade current
operations.
ES4424 Fanshawe Park Road Sewer Replacement
40
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Category: Life Cycle Renewal
Wastewater and Treatment
Capital Expenditure Detail
($000's)
420 420 420 420 840 2,520 5,040
2015 Financing: Capital Levy
1,790 320 2,110
2015 Financing: Capital Levy
402 100 100 602
1,500 1,500
To rebuild and resurface deteriorated access roads and roads
within plants and pumping stations.
ES5150-15 Pumping Station Improvements
* ES5419 Asset Management of the Sewer System
ES5424 Roadway Improvements to Wastewater Treatment
Plants
A program to close information gaps, improve inventory
knowledge, identify system deficiencies and potential remedies for
the sanitary sewerage system that are not covered by other
programs or that may be required to conform with changing
provincial and federal regulations.
Replacement of filtration membrane modules for the Oxford
Wastewater Treatment Plant.
An annual program to monitor pumping stations (36),
replace/upgrade various components such as hydraulic, structural,
mechanical, electrical and instrumentation equipment and review
of tributary flows to ensure adequate future capacity is available.
ES6073 Oxford Wastewater Treatment Plant Membrane
Replacement
Note: * represents projects that are classified as non-tangible capital assets. These expenditures will not result in the creation of a tangible asset (having physical
substance).
41
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Category: Life Cycle Renewal
Wastewater and Treatment
Capital Expenditure Detail
($000's)
1,000 2,000 3,000
Stormwater Management Facilities
420 440 1,320 320 320 320 1,600 4,740
2015 Financing: Capital Levy
200 1,700 1,900
5,250 5,250
2015 Financing: Reserve Fund
ES2428-15 Erosion Remediation in Open Watercourses
Management and Reclamation
ES6074 Pottersburg Wastewater Treatment Plant CSO and
Inlet Works Upgrade
To capture and partially treat combined sewer overflows through
the use of chemically enhanced primary treatment (CEPT) to
provide rapid removal of suspended solids and BOD in the primary
tanks and allow for split flow to aeration.
To undertake remediation works required to maintain adequate
conveyance capacity and minimize erosion impact within open
watercourses and tributaries.
To provide remediation of significant erosion and hydraulic
deficiencies in existing open watercourses and stormwater
management facilities.
ES2478 Existing Ditches and Open Watercourses
ES2476 Elliot-Laidlaw Remediation Works
To undertake remediation works to minimize flooding and erosion,
improve conveyance and eliminate existing deficiencies at a
tributary of the Dingman Creek by constructing the required
stormwater management measures to meet the City and Provincial
requirements.
42
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Category: Life Cycle Renewal
Wastewater and Treatment
Capital Expenditure Detail
($000's)
420 420 420 420 2,100 3,780
50 70 70 70 70 350 680
2,000 2,000 4,000
46,408 (1,069) 45,339
Total Life Cycle Renewal 60,314 19,320 25,627 26,527 32,544 23,808 28,678 150,229 367,047
An annual program for reconstruction of various municipal drains
throughout the City of London under the Drainage Act, as initiated
by property owner petition, in order to alleviate flooding on private
and public property.
ES4825-15 Municipal Drain Reconstruction
ES4834-15 Municipal Drain Maintenance
Balance of approved projects for prior years
comparison
Balance of approved projects for prior years
comparison
Minor repairs to any municipal drain within City boundaries in
accordance with the Drainage Act. Provincial grants subject to
availability. City share of individual projects varies, and this
request reflects average only. Any drainage works constructed
under this Act relating to the construction or improvement of
drainage works by local assessment must be maintained and
repaired by each local municipality.
ESSWM-STMRM Dingman Creek and Other Stream
Remediation
To design and construct the Dingman Creek Stream
Remediation/Reclamation works.
43
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
600 5,500 6,100
50 50 100 200
557 2,208 2,765
447 3,578 4,025
2015 Financing: Development Charges
ES2498 North Talbot Sanitary Sewer Extension (SS15C)
Construction of new trunk sanitary sewer extension on Campbell
Street from Wharncliffe Road North through future subdivision
development. Growth splits are consistent with the 2014
Development Charge Study. 100% Growth Related (100% DC
Rate Supported).
Construction of new trunk sanitary sewers on Colonel Talbot Road
to connect Talbot Village to new Colonel Talbot Pumping Station.
Growth splits are consistent with the 2014 Development Charge
Study. 100% Growth Related (100% DC Rate Supported).
Wastewater and Treatment
Capital Expenditure Detail
($000's)
ES2435 PDC's Installed with Claimable Urban Works
Cost reimbursement for installing Private Drain Connections
(PDC's) for existing properties at the time trunk sewers are
installed in conjunction with the Urban Works Reserve Fund
initiated projects. Constructing PDC's in this manner avoids
significant connection costs, disruption and road restoration costs.
ES2494 North Talbot Sanitary Sewer Extension (SS15A)
Category: Growth
ES2204 Colonel Talbot Pumping Station
New project to construct a pumping station to handle flows from
Talbot, Westfield, Crestwood and Southwinds Pumping Station.
Growth splits are consistent with the 2014 Development Charge
Study. 100% Growth Related (100% DC Rate Supported).
2015 Financing: Development Charges
44
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
250 250 159 159 159 159 795 1,931
Reserve Fund $25
Development Charges 225
Total Financing $250
525 225 225 975* ES4410 Funding of Exemptions for Sanitary and Storm
A contingency amount for the provision of growth triggered sanitary
sewer infrastructure as part of scheduled transportation projects.
Future budget amounts to be verified through detailed engineering
studies. Growth splits are consistent with the 2014 Development
Charge Study. 90% Growth Related (90% DC Rate Supported).
ES3083 Infill & Intensification Corridors Sanitary Sewer
Servicing
2015 Financing:
This project provides funding necessary to reimburse the Urban
Works Reserve Fund (UWRF) for both the non-growth share and
the growth share attributable to exempted development (ie.
Industrial and some Institutional) for sanitary and storm sewer
works. The Development Charges study is statutorily required to
identify the shares of various projects attributable to non-growth
and to different types of development (ie. Residential, Institutional,
Commercial and Industrial-RICI). Project will need to be re-
evaluated in 2015, pending DC policy decisions on new approach
to funding DC exemptions (Industrial and Institutional).
2015 Financing: Reserve Fund
Note: * represents projects that are classified as non-tangible capital assets. These expenditures will not result in the creation of a tangible asset (having physical
substance).
45
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
250 250
250 250
500 500
200 1,453 1,653
ES5016 Wonderland Pumping Station Optimization
Installation of an additional duty pump at Wonderland Pumping
Station. Growth splits are consistent with the 2014 Development
Charge Study. 100% Growth Related (100% DC Rate Supported).
2015 Financing: Development Charges
Expand and upgrade existing pumping station to handle additional
flow of 18.2 MLD due to industrial growth in southeast London.
Growth splits are consistent with 2014 Development Charge Study.
100% Growth Related (90.3% DC Rate Supported).
Note: * represents projects that are classified as non-tangible capital assets. These expenditures will not result in the creation of a tangible asset (having physical
substance).
* ES4415 Wastewater Future Development Charges Studies
2019
To undertake Future Development Charges Study in 2019.
Growth splits are consistent with the 2014 Development Charge
Study. 100% Growth Related (100% DC Rate Supported).
* ES4416 Wastewater Future Development Charges Studies
2024
To undertake Future Development Charges Study in 2024.
Growth splits are consistent with the 2014 Development Charge
Study. 100% Growth Related (100% DC Rate Supported).
ES5132 East Park Pumping Station Expansion
46
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
14 165 89 89 89 89 445 980
243 243 243 243 243 1,215 2,430
2015 Financing:
Reserve Fund $36
Development Charges 207
Total Financing $243
ES5145 Sanitary Sewer Internal Oversizing Subsidy
New project to provide funding source for sanitary sewer oversizing
claims by land developers. Claims are to be paid in accordance
with Schedule 8 of the current DC By-law. Review and approval of
these claims is provided by the Development Finance Division.
Growth splits are consistent with 2014 Development Charge Study.
100% Growth Related (100% DC Rate Supported).
2015 Financing: Development Charges
ES5146 Infill & Intensification Nodes Sanitary Sewer Servicing
A contingency amount for the provision of growth triggered sanitary
sewer infrastructure. Future budget amounts to be verified through
detailed engineering studies. Growth splits are consistent with
2014 Development Charge Study. 85% Growth Related (85% DC
Rate Supported).
47
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
500 500 5,000 6,000 1,600 8,500 22,100
Senior Government Funding $333
Development Charges 167
Total Financing $500
6,000 6,000
ES5147 Sanitary Industrial Servicing
2015 Financing:
Sanitary servicing of future light and general industrial land to
provide an adequate inventory of large block "shovel ready" land in
strategic locations. Project coordinated with other industrial
servicing accounts (Internal Servicing, Storm, Stormwater
Management and Water). Growth splits are consistent with the
2014 Development Charge Study. 100% Growth Related (100%
DC Rate Supported).
ES5233 Vauxhall Wastewater Treatment Plant Capacity
Upgrades
Expansion/optimization of treatment capacity at Vauxhall
Wastewater Treatment Plant. Growth splits are consistent with the
2014 Development Charge Study. 50% Growth Related (50% DC
Rate Supported).
48
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
525 4,057 359 2,868 7,809
Reserve Fund $203
Development Charges 3,854
Total Financing $4,057
305 305
2015 Financing:
Construction of a gravity sanitary sewer from the Bostwick area
southerly to the proposed Wonderland-Dingman Pumping Station.
ES5247 constructs 1,230m of sanitary sewer along Wharncliffe
Road South to Wonderland Road. ES5248 will construct trunk
sewer from Wharncliffe Road/Wonderland Road to the proposed
Wonderland-Dingman Pumping Station. Growth splits are
consistent with the 2014 Development Charge Study. 95% Growth
Related (95% DC Rate Supported) and 100% Growth Related
(100% DC Rate Supported).
ES5247 and ES5248 Wonderland/Wharncliffe Road South
Trunk Gravity Sewer
ES5250 North Talbot Sanitary Sewer Extension (SS15B)
Construction of a 300mm forcemain from the proposed
Wonderland-Dingman Pumping Station forcemain through the
Bostwick area outletting to the Greenway Sewer System via the
Westmount trunk sewer system (Southside - SS23). This work will
meet both interim and longer term servicing objectives by allowing
flows to be directed back to the Greenway Wastewater Treatment
Plant through the Westmount Trunk Sewer System. Growth splits
are consistent with the 2014 Development Charge Study. 100%
Growth Related (100% DC Rate Supported).
49
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
200 999 1,199
1,713 405 2,118
605 4,838 5,443
For the extension of municipal sanitary sewer on Exeter Road from
Breck Avenue to Meadowgate Boulevard (1,000m) and northerly.
Growth splits are consistent with the 2014 Development Charge
Study (SS12B). 100% Growth Related (100% DC Rate
Supported).
2015 Financing: Development Charges
Extension of the Riverbend Trunk Sanitary Sewer through Phase II
West Kains Subdivision to Oxford Street West as identified in the
Riverbend Sanitary Servicing Study. Growth splits are consistent
with the 2014 Development Charge Study. 100% Growth Related
(100% DC Rate Supported).
2015 Financing: Development Charges
Construction of the Kilally South Trunk from the Edgevalley
Phase I Subdivision part way to Kilally Road. Routing as identified
in the Kilally South Area Plan. Growth splits are consistent with
the 2014 Development Charge Study. 100% Growth Related
(100% DC Rate Supported).
ES5252 Kilally South Trunk Sanitary Sewer
2015 Financing: Development Charges
ES5253 Riverbend Trunk Sanitary Sewer Extension
ES5256 Exeter Road Trunk Sanitary Sewer (SS12B)
50
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
350 850 6,741 7,941
Reserve Fund $270
Development Charges 6,471
Total Financing $6,741
15,000 15,000
2,500 2,500
To construct trunk sanitary sewers in the existing Lambeth area to
service growth areas as well as provide trunk sanitary servicing for
existing unserviced area of Lambeth. Trunk sewers will outlet to
the proposed Wonderland Pumping Station and allow
decommissioning of the existing Southland Wastewater Treatment
Plant. Growth splits are consistent with the 2014 Development
Charge Study. 96% Growth Related (96% DC Rate Supported).
ES5260 Lambeth Southland Servicing Solution (SS3A)
Project funds a major upgrade of Wonderland Pumping Station.
Growth splits are consistent with the 2014 Development Charge
Study. 100% Growth Related (100% DC Rate Supported).
ES5263 Southwest Capacity Improvement
Southwest Capacity Improvements are works to create more
conveyance capacity within the Dingman/Wonderland systems.
The scope of works is subject to further study and monitoring.
Growth splits are consistent with the 2014 Development Charge
Study. 100% Growth Related (100% DC Rate Supported).
ES5264 Wonderland Pumping Station Upgrade
2015 Financing:
51
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
400 400
689 689 689 689 689 3,445 6,890
Reserve Fund $48
Development Charges 641
Total Financing $689
1,736 1,149 1,149 1,149 1,149 5,747 12,079
ES5428 Infill & Intensification Nodes Storm Sewer Servicing
Note: * represents projects that are classified as non-tangible capital assets. These expenditures will not result in the creation of a tangible asset (having physical
substance).
2015 Financing: Development Charges
Project to provide a funding source for storm sewer oversizing
claims by land developers. Claims are to be paid in accordance
with Schedule 8 of the current development charges by-law.
Review and approval of these claims is provided by Development
Finance Division. Growth splits are consistent with the 2014
Development Charge Study. 100% Growth Related (100% DC
Rate Supported).
2015 Financing:
ES5429 Storm Sewer Internal Oversizing Subsidy
Project to provide a contingency amount for the provision of growth
triggered storm sewer infrastructure. Future budget amounts to be
verified through detailed engineering studies. Growth splits are
consistent with the 2014 Development Charge Study. 93% Growth
Related (93% DC Rate Supported).
Evaluation of alternatives for handling biosolids generated at City
Wastewater Treatment Plants. Growth splits are consistent with
the 2014 Development Charge Study. 16.9% Growth Related
(16.9% DC Rate Supported).
* ES5402 Bio-Solids Master Plan
52
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
800 800
758 758 758 758 758 3,790 7,580
2,600 800 900 900 5,200
Senior Government Funding $1,733
Development Charges 867
Total Financing $2,600
ES5431 Adelaide Wastewater Treatment Plant Expansion
Phase II
Phase II includes addition of aerated and final clarifier tanks and
upgrading process operations in order to comply with MOE
requirements. Growth splits are consistent with the 2014
Development Charge Study. 100% Growth Related based on
flow/capacity (100% DC Rate Supported).
ES5520 Community Growth Trunk Storm Sewer Works
Project to provide a contingency amount for the provision of major
trunk storm sewers along arterial roadways to support growth
triggered storm sewer infrastructure. Future budget amounts to be
verified through detailed engineering studies. Growth splits are
consistent with the 2014 Development Charge Study. 100%
Growth Related (100% DC Rate Supported).
2015 Financing: Development Charges
2015 Financing:
Storm servicing of future light and general industrial land to provide
an adequate inventory of large block "shovel ready" land in
strategic locations. Project coordinated with other industrial
servicing accounts (Internal Servicing, Sanitary, Stormwater
Management and Water). Growth splits are consistent with the
2014 Development Charge Study. 100% Growth Related (100%
DC Rate Supported).
ES6090 Storm Industrial Servicing (Trunk and Internal
Oversizing)
53
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
7,715 550 8,265
Stormwater Management Facilities
365 660 2,142 2,343 4,001 9,511
ID2058 Innovation Park - Sewer Oversizing Works
Project to assume stormwater management and oversizing sewer
works for Innovation Park Phase III. Coordinated with CAO's
Industrial Land Project ID1168, and Water Oversizing Project
EW3606. 58.2% Growth Related (5.6% DC Rate Supported).
To undertake remediation to minimize flooding/erosion, improve
conveyance and eliminate existing deficiencies within the main
channel of Dingman Creek. Construct a water resources
management system to meet the stormwater requirements
associated with land use changes and optimize the performance of
this system to meet the Provincial water quality and flood control
objectives. Growth splits are consistent with the 2014
Development Charge Study. 14% Growth Related (14% DC Rate
Supported).
ES2475 Dingman Creek Main Channel Remediation Works
2015 Financing: Industrial Oversizing Reserve Fund
54
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
3,360 950 4,310
2,700 2,414 5,114
600 40 640
To undertake remediation works to minimize and eliminate the
existing erosion, conveyance and flooding deficiencies for the
north portion of the Mud Creek system within the Mud Creek East
subwatershed. Growth splits are consistent with the 2014
Development Charge Study. 100% Growth Related (94.1% DC
Rate Supported).
2015 Financing: Development Charges
2015 Financing: Development Charges
ES2681 Mud Creek Erosion and Flooding Remediation Works
ES2485 Old Oak Servicing
To undertake remediation works to minimize and eliminate the
existing erosion, conveyance, and flooding deficiencies of the
south portion of the Mud Creek subwatershed. Construction of the
stormwater management system to meet the Provincial flood
control and water quality objectives. Growth splits are consistent
with the 2014 Development Charge Study. 34.4% Growth Related
(33.2% DC Rate Supported).
ES2688 Mud Creek Remediation South
To improve conveyance capacity and undertake erosion
remediation works to address the existing deficiencies and support
growth in the area of the Old Oak Drainage Area, from Exeter
Road to Dingman Drive and south of Dingman Creek. This area is
within the Dingman Creek subwatershed area and will require
regional stormwater management facilities to meet Provincial water
quality erosion and flood control objectives. Growth splits are
consistent with the 2014 Development Charge Study. 100%
Growth Related (100% DC Rate Supported).
55
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
100 100 100 100 100 500 1,000
416 417 417 417 417 417 2,501
195 760 5,435 6,390
2015 Financing: Development Charges
Project to undertake the required Municipal Class Environmental
Assessment to study, design and construct a Contingency Facility
and associated works to service proposed development growth.
Growth splits are consistent with the 2014 Development Charge
Study. 100% Growth Related (100% DC Rate Supported).
2015 Financing: Development Charges
ES3022 Contingency Facility
ES3201 Dingman On-line Stormwater Management Flood
Control Facility #1
ES3021 Land (Expropriation Negotiations)
Project to undertake all necessary engineering, economic and legal
assessment to proceed with land expropriation for the identified
SWMF. Growth splits are consistent with the 2014 Development
Charge Study. 100% Growth Related (100% DC Rate Supported).
To undertake remediation works to minimize and eliminate existing
flooding, erosion and conveyance capacity deficiencies of the
Dingman Creek System and construct water resources/ stormwater
management remediation works. Growth splits are consistent with
the 2014 Development Charge Study. 10% Growth Related (9.9%
DC Rate Supported).
56
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
150 560 4,030 4,500 9,240
Reserve Fund $476
Development Charges 84
Total Financing $560
288 1,113 1,401
250 250
To undertake an update of the Development Charges Study in
2019 for storm/drainage and stormwater management works.
Growth splits are consistent with the 2014 Development Charge
Study. 100% Growth Related (100% DC Rate Supported).
2015 Financing:
To undertake remediation works to minimize and eliminate existing
flooding, erosion and conveyance capacity deficiencies for the
Dingman Creek System and to construct a water resources
remediation/reclamation system. Growth splits are consistent with
the 2014 Development Charge Study. 15% Growth Related (15%
DC Rate Supported).
ES3202 Dingman On-line Stormwater Management Flood
Control Facility #2
Note: * represents projects that are classified as non-tangible capital assets. These expenditures will not result in the creation of a tangible asset (having physical
substance).
* ES3205 Stormwater Future Development Studies 2019
New project to design and construct Hyde Park-Stanton Drain
remediation works in accordance with the accepted Stormwater
Management Facility Municipal Class Environment Assessment.
Growth splits are consistent with the 2014 Development Charge
Study. 100% Growth Related (100% DC Rate Supported).
2015 Financing: Development Charges
ES3203 Hyde Park - Stanton Drain Phase II
57
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
250 250
300 300
300 300
To undertake an update of the Development Charges Study in
2024 for storm/drainage and stormwater management servicing.
Growth splits are consistent with the 2014 Development Charge
Study. 100% Growth Related (100% DC Rate Supported).
To undertake the southwest area Municipal Class Environmental
Study(s) to identify the recommended storm/drainage and
stormwater management servicing works for proposed
development. Growth splits are consistent with the 2014
Development Charge Study. 100% Growth Related (100% DC
Rate Supported).
* ES3207 Southwest Area Municipal Class Environmental
Assessment
* ES3208 Southeast Area Municipal Class Environmental
Assessment
* ES3206 Stormwater Future Development Studies 2024
Note: * represents projects that are classified as non-tangible capital assets. These expenditures will not result in the creation of a tangible asset (having physical
substance).
To undertake the southeast area Municipal Class Environmental
Study(s) to identify the recommended storm/drainage and
stormwater management servicing works for proposed
development growth. Growth splits are consistent with the 2014
Development Charge Study. 100% Growth Related (100% DC
Rate Supported).
58
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
50 50 50 50 50 250 500
200 200 200 200 200 1,000 2,000
400 400 200 200 200 600 2,000
2015 Financing: Development Charges
ES5427 Pre-Assumption Monitoring
To undertake the required stormwater management water quality
monitoring to proceed with the city's assumption of stormwater
management facilities. Growth splits are consistent with the 2014
Development Charge Study. 100% Growth Related (100% DC
Rate Supported).
* ES3209 Stormwater Unidentified Municipal Class
Environmental Assessment Addendums
To undertake Addendum(s) to the existing Municipal Class
Environmental Assessment Studies for storm/drainage and
stormwater management servicing works that need to be
changed/modified. Growth splits are consistent with the 2014
Development Charge Study. 100% Growth Related (100% DC
Rate Supported).
2015 Financing: Development Charges
2015 Financing: Development Charges
ES5425 Interim Works as Identified in Environmental
Assessment
Note: * represents projects that are classified as non-tangible capital assets. These expenditures will not result in the creation of a tangible asset (having physical
substance).
To undertake the required preliminary storm/drainage and
stormwater management water resources evaluation of existing
and future conditions to assess the requirements for the Interim
Works identified in Environmental Assessment studies. Growth
splits are consistent with the 2014 Development Charge Study.
100% Growth Related (100% DC Rate Supported).
59
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
5,002 5,002 5,002 5,002 8,367 28,375
Senior Government Funding $3,335
Development Charges 1,667
Total Financing $5,002
219 3,419 3,638
187 263 3,345 3,795
To undertake a Municipal Class Environmental Assessment Study,
design and construction of the proposed Dingman Creek North
Lambeth No. P9 Stormwater Management Facility. Growth splits
are consistent with the 2014 Development Charge Study. 100%
Growth Related (100% DC Rate Supported).
2015 Financing: Development Charges
ESSWM-DCNLP9 SWM Facility - Dingman Creek North
Lambeth No. P9
Stormwater Management servicing of future light and general
industrial land to provide an adequate inventory of large block
"shovel ready" land in strategic locations. Project coordinated with
other industrial servicing accounts (Internal Servicing, Sanitary,
Storm and Water). Growth splits are consistent with the 2014
Development Charge Study. 100% Growth Related (100% DC
Rate Supported).
To undertake a Municipal Class Environmental Assessment Study,
design and construction of the Dingman Creek No. B4 Stormwater
Management Facility and associated servicing works to service this
development area. Growth splits are consistent with the 2014
Development Charge Study. 100% Growth Related (100% DC
Rate Supported).
ESSWM-DCB4 SWM Facility - Dingman Creek No. B-4
2015 Financing: Development Charges
ES6095 Stormwater Management Industrial Servicing
2015 Financing:
60
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
2,977 2,977
3,750 3,750
450 3,127 3,577
4,134 4,134
To design and construct Kilally Southeast Stormwater
Management Facility and associated works in order to service the
development within the Kilally South Development Area. Growth
splits are consistent with the 2014 Development Charge Study.
100% Growth Related (100% DC Rate Supported).
ESSWM-FH1 SWM Facility - Fox Hollow No. 1 Phase II
To undertake the design and construction of the proposed
stormwater management servicing works for this facility. Growth
splits are consistent with the 2014 Development Charge Study.
100% Growth Related (100% DC Rate Supported).
ESSWM-LPH SWM Facility - London Psychiatric Hospital
(LPH)
ESSWM-MM2 SWM Facility - Murray Marr No. 2 Phase I
To design and construct the proposed Stormwater Management
Facility - Murray Marr No. 2 Phase I in accordance with the existing
Municipal Class Environmental Assessment Study recommended
storm/drainage and stormwater management servicing. Growth
splits are consistent with the 2014 Development Charge Study.
100% Growth Related (100% DC Rate Supported).
To undertake the design and construction of the Fox Hollow
Stormwater Management Facility No. 1 Phase II and associated
works to service the proposed development. Growth splits are
consistent with the 2014 Development Charge Study. 100%
Growth Related (100% DC Rate Supported).
ESSWM-KILSE SWM Facility - Kilally Southeast
61
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
2,836 2,836
250 250 3,106 3,606
250 250 3,191 3,691
ESSWM-NLP7 SWM Facility - North Lambeth No. P7
To undertake the required Municipal Class Environmental
Assessment Study, design and construction for the North Lambeth
Stormwater Management Facility No. P8 and associated works to
service the proposed development. Growth splits are consistent
with the 2014 Development Charge Study. 100% Growth Related
(100% DC Rate Supported).
2015 Financing: Development Charges
2015 Financing: Development Charges
ESSWM-NLP6 SWM Facility - North Lambeth No. P6
To undertake the required Municipal Class Environmental
Assessment Study, design and construction for the North Lambeth
Stormwater Management Facility No. P7 and associated works to
service the proposed development. Growth splits are consistent
with the 2014 Development Charge Study. 100% Growth Related
(100% DC Rate Supported).
ESSWM-NLP8 SWM Facility - North Lambeth No. P8
To undertake the required Municipal Class Environmental
Assessment Study, design and construction for the North Lambeth
Stormwater Management Facility No. P6 and associated works to
service the proposed development. Growth splits are consistent
with the 2014 Development Charge Study. 100% Growth Related
(100% DC Rate Supported).
62
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
4,080 4,080
238 1,577 1,815
655 3,712 4,367
2015 Financing: Development Charges
ESSWM-PKR SWM Facility - Parker
ESSWM-OV1 SWM Facility - Old Victoria No. 1
ESSWM-NLP10 SWM Facility - North Lambeth No. P10
(Dingman Tributary D2) Phase I
To undertake the required Municipal Class Environmental
Assessment Study, design and construction for the North Lambeth
Stormwater Management Facility No. P10 Phase I associated with
the proposed development. Growth splits are consistent with the
2014 Development Charge Study. 9% Growth Related (9% DC
Rate Supported).
2015 Financing: Development Charges
To undertake the addendum modifications to the Old Victoria
Municipal Class Environmental Assessment Study, design and
construction of the Old Victoria No. 1 Stormwater Management
Facility for the approved drainage area. Growth splits are
consistent with the 2014 Development Charge Study. 100%
Growth Related (100% DC Rate Supported).
To design and construct the Parker Stormwater Management
Facility and associated works in order to service the development
within the Summerside Development Area in accordance with the
completed and approved Summerside Drainage Master Plan.
Growth splits are consistent with the 2014 Development Charge
Study. 100% Growth Related (100% DC Rate Supported).
63
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
500 1,700 2,000 4,200
367 2,081 2,448
354 616 4,158 5,128ESSWM-PD4 SWM Facility - Pincombe Drain No. 4
To undertake design and construction of the Pincombe Drain
Stormwater Stormwater Management Facility No. 3 in accordance
with the accepted Municipal Class Environmental Assessment
Study for Pincombe Drain. Growth splits are consistent with the
2014 Development Charge Study. 100% Growth Related (100%
DC Rate Supported).
2015 Financing: Development Charges
2015 Financing: Development Charges
To design and construct the remediation of the Pincombe Drain in
order to support development within the Pincombe Drain
Environmental Assessment Study Area in accordance with the
completed and accepted Municipal Class Environmental
Assessment Study. Growth splits are consistent with the 2014
Development Charge Study. 88.1% Growth Related (85.9% DC
Rate Supported).
ESSWM-PDR Pincombe Drain Remediation
To design and construct the Pincombe Drain No. 4 Stormwater
Management Facility and applicable servicing works in order to
support the development in accordance with the completed and
accepted Pincombe Drain Municipal Class Environmental
Assessment Study Area. Growth splits are consistent with the
2014 Development Charge Study. 100% Growth Related (100%
DC Rate Supported).
ESSWM-PD3 SWM Facility - Pincombe Drain No. 3
64
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
1,731 1,731
2,187 2,920 3,300 8,407
299 1,696 1,995
2015 Financing: Development Charges
ESSWM-PD5 SWM Facility - Pincombe Drain No. 5
2015 Financing: Development Charges
To design and construct the River Bend Tributary 'C' Stormwater
Management Facility and applicable servicing works in order to
support land development within the Tributary 'C' area in
accordance with the completed and accepted Tributary 'C'
Municipal Class Environmental Assessment study area. Growth
splits are consistent with the 2014 Development Charge Study.
100% Growth Related (98.6% DC Rate Supported).
To design and construct the Pincombe Drain No. 5 Stormwater
Management Facility and applicable servicing works in order to
support the development in accordance with the completed and
accepted Pincombe Drain Municipal Class Environmental
Assessment Study. Growth splits are consistent with the 2014
Development Charge Study. 100% Growth Related (100% DC
Rate Supported).
ES3020-RVBTC SWM Facility - River Bend Trib 'C'
ESSWM-SC2 SWM Facility - Stoney Creek No. 2
To design and construct the proposed Stormwater Management
Facility - Stoney Creek No. 2 in accordance with the existing
accepted Municipal Class Environmental Assessment Study
recommended option for the storm/drainage and stormwater
management servicing. Growth splits are consistent with the 2014
Development Charge Study. 100% Growth Related (100% DC
Rate Supported).
65
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
1,668 1,668
1,051 1,051
295 1,666 1,961
To design and construct the proposed Stormwater Management
Facility - Stoney Creek No. 7.1 in accordance with the existing
accepted Municipal Class Environmental Assessment Study
recommended storm/drainage and stormwater management
servicing. Growth splits are consistent with the 2014 Development
Charge Study. 100% Growth Related (100% DC Rate Supported).
To design and construct the Stoney Creek No. 8 Stormwater
Management Facility and associated works in accordance with the
completed and accepted Municipal Class Environmental
Assessment for storm/drainage and stormwater management
servicing works for the undeveloped Stoney Creek Area. Growth
splits are consistent with the 2014 Development Charge Study.
100% Growth Related (100% DC Rate Supported).
ESSWM-SC10 SWM Facility - Stoney Creek No. 10
To design and construct the Stoney Creek No. 10 Stormwater
Management Facility and associated works in order to support and
service the development within the Stoney Creek Development
Area in accordance with the completed and accepted Stoney
Creek Municipal Class Environmental Assessment for
undeveloped lands. Growth splits are consistent with the 2014
Development Charge Study. 100% Growth Related (100% DC
Rate Supported).
ESSWM-SC7-1 SWM Facility - Stoney Creek No. 7.1
ESSWM-SC8 SWM Facility - Stoney Creek No. 8
66
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
1,696 1,696
1,962 1,962
425 2,412 2,837
To undertake design and construction of the White Oaks No. 3
Stormwater Management Facility and applicable servicing works in
order to support the development within the White Oaks
Development Area in accordance with the Addendum to the
Municipal Class Environmental Assessment for storm/drainage and
stormwater management servicing works. Growth splits are
consistent with the 2014 Development Charge Study. 100%
Growth Related (100% DC Rate Supported).
ESSWM-WO3 SWM Facility - White Oak No. 3
ESSWM-SD6A SWM Facility - Sunningdale No. 6A
To design and construct the proposed Stormwater Management
Facility - Sunningdale No. 6A in accordance with the existing
accepted Municipal Class Environmental Assessment
recommended storm/drainage and stormwater management
servicing. Growth splits are consistent with the 2014 Development
Charge Study. 100% Growth Related (100% DC Rate Supported).
ESSWM-SDE1 SWM Facility - Sunningdale No. E1
2015 Financing: Development Charges
To design and construct the proposed Stormwater Management
Facility - Sunningdale No. E1 in accordance with the existing
accepted Municipal Class Environmental Assessment Study.
Growth splits are consistent with the 2014 Development Charge
Study. 100% Growth Related (100% DC Rate Supported).
67
Service Grouping: Wastewater and Treatment
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Category: Growth
500 4,198 4,698
47,028 31,785 78,813
Total Growth 67,073 36,953 42,130 52,983 40,809 32,246 14,801 81,636 368,631
To design and construct the White Oaks No. 4 Stormwater
Management Facility and associated works to eliminate and
minimize existing flooding and to support and service the proposed
land development in accordance with the Addendum to the
completed and accepted White Oak Municipal Class
Environmental Assessment Study for storm/drainage and
stormwater management servicing works. Growth splits are
consistent with the 2014 Development Charge Study. 100%
Growth Related (100% DC Rate Supported).
Balance of approved projects for prior years
comparison
ESSWM-WO4 SWM Facility - White Oaks No. 4
2015 Financing: Development Charges
68
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
100 100 100 500 100 900 1,800
60 30 30 30 150
2015 Financing: Capital Levy
2015 Financing: Capital Levy
Category: Service Improvements
Note: * represents projects that are classified as non-tangible capital assets. These expenditures will not result in the creation of a tangible asset (having physical
substance).
Staff initiated a regional watershed project to assist in the
management and protection of the Thames River watershed. This
project is an update of the 1975 "Thames River Basin Study" and
borrows approaches from the successful HELP Clean Water
partnership which focused on regional drinking water supplies.
Project funding to be used to match funding from other partners for
an external project coordinator and meeting expenses.
Wastewater and Treatment
Capital Expenditure Detail
($000's)
* ES2108 Thames River Clear Water Revival
* ES2092-15 Sump Pump Grant Program
An annual program to provide grants for privately installed sump
pumps, backwater valves, sewer ejector and storm sewer private
drain connections. Maximum subsidy of $2,650 per house for
external and $1,950 for internal connection and a $6,000 maximum
for storm sewer private drain connection. The maximum subsidy
for a backwater valve is $825.
Service Grouping: Wastewater and Treatment
69
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Category: Service Improvements
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Service Grouping: Wastewater and Treatment
828 200 800 800 800 800 4,000 8,228
Reserve Fund $100
Local Improvement 100
Total Financing $200
5,715 1,480 6,390 6,350 6,000 6,250 40,450 72,635
200 200 200 200 200 1,000
ES2442-15 Extension of Sanitary Services
ES2468 Problematic Sump Pump Discharge Program
2015 Financing: Federal Gas Tax Grant
Cost sharing project for the extension of services to unserviced
parts of the urban growth area and beyond. City's share is in
accordance with the Local Improvement Act on case-by-case
basis, due to exemptions that occur on each project. 50% City;
50% Cash Payments, to be refined during design.
ES2464-15 Separation and CSO Program
This project is undertaken to investigate, monitor, model, develop
and implement solutions to reduce or eliminate combined sewer
overflows (CSO's). Study work will develop a list of priorities.
Some projects are already defined and planned for design and
construction in the short term. Construction of separate storm and
sanitary sewers are planned for a number of areas, which will
effectively reduce the volume of storm drainage diverted to the
sanitary sewer system and prevent/reduce CSO's to the Thames
River. Coordinated with water project EW3656-2 - Wellington
Road Area Watermain Replacement.
2015 Financing:
Eliminate chronic icing and wet conditions due to problematic
sump pump discharges on City right-of-way.
2015 Financing: Reserve Fund
70
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Category: Service Improvements
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Service Grouping: Wastewater and Treatment
1,550 1,550
100 1,350 1,450
200 3,000 3,200
9,752 1,550 4,800 16,102
Reserve Fund $3,530
Federal Gas Tax Grant 1,270
Total Financing $4,800
2015 Financing:
Construction of trunk storm sewer along C.P.R. tracks between
Waterloo Street and Maitland Street.
2015 Financing: Reserve Fund
ES3013 Carling Creek Trunk Storm Phase IV
Continuation of construction of trunk storm sewer between Pine
Street and Brydges Street, and section just south of Margaret
Street. To relieve severe flooding in Burbrook Watershed. This
will be the last phase of the project.
ES2469 Southland Pollution Control Plant Conversion
Decommissioning of Southland Pollution Control Plant (PCP) and
construction of a new pumping station/forcemain to improve long-
term sanitary servicing within the existing Lambeth community.
The forcemain from the new pumping station to outlet to Hamlyn
Trunk Sewer.
ES3054 Burbrook Trunk Storm Sewer Phase IV
ES3042 Vauxhall Flood Proofing & Effluent Pumping Station
Construction of flood proofing to protect against high water levels
and pumping station to make sure flows are discharged.
71
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Category: Service Improvements
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Service Grouping: Wastewater and Treatment
200 1,750 80 8,950 10,980
400 1,000 1,400
945 5,055 6,000
100 350 1,900 5,650 8,000
Class Environmental Assessment, design and construction of a
two way forcemain between Vauxhall and Pottersburg Wastewater
Treatment Plants including upgrades to Chelsea Heights Pumping
Station and a new pumping station at Pottersburg to convey flows
between plants.
ES3097 Vauxhall and Pottersburg Pumping Stations and
Forcemains
Burbrook Lateral Storm Sewers provide stormwater drainage to
areas in the Burbrook Drainage Area which are tributary to the
Burbrook Trunk Storm Sewer. Coordinated with Water Project
EW3624 - Burbrook Watermain Upgrade Phase II. Phases subject
to changes depending on completion of Burbrook Trunk Storm
Sewer.
ES3058 Burbrook Lateral Program
2015 Financing: Reserve Fund
ES3098 Greenway Wastewater Treatment Plant Flood Proofing
and Effluent Pumping Station
Engineering and construction of works to protect the Greenway
Wastewater Treatment Plant from the 250 year flood including
walls, barriers and an effluent pumping station to ensure treated
flow discharge when Thames River levels are elevated.
2015 Financing: Reserve Fund
ES3059 Dayus Creek Trunk Storm Sewer Replacement
2015 Financing: Reserve Fund
Replace the existing 1,200mm trunk storm sewer outlet with a
2,400mm storm sewer from Ada Street to Terrace Street to
properly service the existing watershed.
72
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Category: Service Improvements
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Service Grouping: Wastewater and Treatment
9,375 9,375
50 50 100 200ES5165-17 New Equipment Wastewater Treatment Plants
Program for additional mechanical, electrical and instrumentation
equipment required to maintain and improve operations.
ES3111 Local Improvement - White Oak Industrial Subdivision
Sewer
Cost sharing project for the installation of sanitary sewers for the
existing White Oak Industrial Subdivision. White Oak South
Sanitary Servicing Environmental Assessment completed in 2005.
Local servicing to be provided as local improvement under City
policy regarding extension of services to existing unserviced areas,
following completion of GMIS White Oak Trunk Sewer in 2011.
Property owners pay 75% of costs, City pays 25%. To be carried
out in conjunction with Local Improvement Water Servicing
EW3806. Budget for 2020 has been updated to reflect exemptions
under the Local Improvement Act. The City has been paying 100%
design fees, 25% of construction costs, and any exemptions under
the Local Improvement Act. It is estimated that this represents
60% of the total project costs. Property owners surveyed
informally declined Local Improvement in 2012. Project deferred to
2020 or to time when road life cycle replacement is scheduled.
73
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Category: Service Improvements
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Service Grouping: Wastewater and Treatment
Stormwater Management Facilities
1,680 280 280 2,240
4,730 1,200 940 940 2,400 7,700 17,910
1,150 1,150
* ES2452 Water Quality and Storm Flow Conveyance
Monitoring Program
Construction of regional Stormwater Management Facility #3 in the
Murray Marr drainage area.
ES2474 UTRCA - Remediating Flood Control Works within City
Limits
To undertake monitoring works to evaluate the water quality and
storm flow conveyance for various watercourses and the Thames
River.
Program in partnership with the Upper Thames River Conservation
Authority (UTRCA) who contributes matching funding through
provincial programs for maintaining and reconstructing
components of the City's flood and erosion control infrastructure.
ES3016 Murray Marr Stormwater Management Facility #3
74
Prior
Years 2014 2015 2016 2017 2018 2019
2020 to
2024 Total
Category: Service Improvements
Wastewater and Treatment
Capital Expenditure Detail
($000's)
Service Grouping: Wastewater and Treatment
210 210 210 210 210 1,050 2,100
15,774 302 16,076
32,196 10,915 9,805 9,480 13,985 11,750 13,090 80,325 181,546
Total Wastewater and Treatment 159,583 67,188 77,562 88,990 87,338 67,804 56,569 312,190 917,224
Total System Improvement
Balance of approved projects for prior years
comparison
ES3040-15 Minor Surface Flooding
Annual program to construct works in order to alleviate surface
flooding, erosion problems and slope stability that impact private
property, which are outside the scope of the municipal sump pump
grant program.
Note: * represents projects that are classified as non-tangible capital assets. These expenditures will not result in the creation of a tangible asset (having physical
substance).
75
Wastewater and Treatment
2015 Reserve Funds and Reserves
Wastewater and Treatment
Reserve Funds and Reserves
Sewage Works Actual Projected Approved
Reserve Fund (1) 2013 2014 2015 2016 2017 2018 2019 2020 - 2024
Opening Balance 44,775 46,475 18,949 24,361 26,734 17,497 20,932 21,455
Contributions 16,759 20,185 22,542 20,338 19,160 20,125 17,519 97,612
Add'l Contribution (surplus/account closing) 694
Interest earned 848 856 565 668 578 503 554 2,782
$63,076 $67,516 $42,056 $45,367 $46,472 $38,125 $39,005 $121,849
Drawdowns - Current Year 7,338 18,270 17,695 18,633 28,975 17,193 17,550 94,509
- Prior Years 9,263 30,297
Total Drawdowns (2) $16,601 $48,567 $17,695 $18,633 $28,975 $17,193 $17,550 $94,509
Ending Balance $46,475 $18,949 $24,361 $26,734 $17,497 $20,932 $21,455 $27,340
Notes:
(1) This reserve fund is intended to support the capital needs of the wastewater system with an estimated replacement value of $4.0 billion.
(2) Drawdowns are based on full capital needs and not intended to project the actual cash flow of funds being utilized in a particular year.
Industrial DC Incentive Program Actual Projected Approved
Sewer Reserve Fund (1) 2013 2014 2015 2016 2017 2018 2019 2020 - 2024
Opening Balance 0 0 2,128 1,338 1,338 1,338 1,338 1,365
Tsf from Sewage Treatment Plant RF 2,100
Contributions 2,000 2,800 2,800 2,800 2,800 14,400
Interest earned 28 45 35 35 35 36 186
$0 $2,128 $4,173 $4,173 $4,173 $4,173 $4,174 $15,951
Tsf to City Services-Sanitary Sewer 1,226 1,226 1,226 1,226 1,215 6,240
-Major SWM 1,609 1,609 1,609 1,609 1,594 8,187
Total transfers to CSRF $0 $0 $2,835 $2,835 $2,835 $2,835 $2,809 $14,427
Ending Balance $0 $2,128 $1,338 $1,338 $1,338 $1,338 $1,365 $1,524
Notes:
($000's)
Forecast
(1) This reserve fund is being established to support development charge exemptions contained in various Community Improvement Plans (CIP).
The reserve fund will be funded annually from Wastewater operating rates to support industrial growth share of all sanitary sewer and major
Stormwater Management infrastructure projects.
Forecast
76
Wastewater and Treatment
Reserve Funds and Reserves
($000's)
Sewage Treatment Plant Capacity Actual Projected Approved
Reserve Fund (1) 2013 2014 2015 2016 2017 2018 2019 2020 - 2024
Opening Balance 6,554 7,731 81 83 85 87 89 91
Contributions 1,046 1,046
Interest 131 130 2 2 2 2 2 13
$7,731 $8,907 $83 $85 $87 $89 $91 $104
Tsf to Industrial DC Incentive Program RF $2,100
Drawdowns - Current Year 2,500
- Prior Years 4,226
Total drawdowns $0 $8,826 $0 $0 $0 $0 $0 $0
Ending Balance (2) $7,731 $81 $83 $85 $87 $89 $91 $104
Notes:
Industrial Oversizing Sewer Actual Projected ApprovedReserve Fund 2013 2014 2015 2016 2017 2018 2019 2020 - 2024
Opening Balance 8,685 10,184 9,238 9,939 10,281 10,241 9,186 8,103
Levies 1,500 1,500 1,000 1,000 1,000 0
Interest 175 254 251 264 269 254 226 686
$10,360 $11,938 $10,489 $11,203 $11,550 $10,495 $9,412 $8,789
Growth portion - Existing Debt Repayment 320
Growth portion - Debt authorized - Not issued 922 1,309 1,309 1,309 6,545
Drawdowns - Current Year (35) 550
- Prior Years (144) 2,735
Total drawdowns (1) $176 $2,700 $550 $922 $1,309 $1,309 $1,309 $6,545
Ending Balance (2) $10,184 $9,238 $9,939 $10,281 $10,241 $9,186 $8,103 $2,244
(1) Drawdowns are based on full capital needs and not intended to project the actual cash flow of funds being utilized in a particular year.
(2) This reserve fund will be closed once all commitments have been made.
(1) The Sewage Treatment Plant Capacity Reserve Fund was established in 2007 to provide a funding source for the sewage treatment plant capacity
projects in order to eliminate the need for the more costly option of issuing debenture financing, consistent with the Corporate Strategic Financial Plan
adopted by Council.
Forecast
(2) This reserve fund will be closed once all commitments have been made.
Notes:
Forecast
77
Wastewater and Treatment
Reserve Funds and Reserves
($000's)
City Services Sanitary Sewer Levies Actual Projected Approved
Reserve Fund 2013 2014 2015 2016 2017 2018 2019 2020 - 2024
Opening Balance 14,102 15,245 5,469 2,207 1,680 1,032 1,640 2,736
Levies 5,990 6,168 5,410 5,634 5,813 5,825 5,837 28,482
Tsf from Industrial DC Incentive Program RF 1,226 1,226 1,226 1,226 1,215 6,240
Tsf from DC Incentive Program Reserve Funds (1) 536 522 509 497 485 2,421
Interest 315 271 99 51 35 35 57 403
$20,407 $21,684 $12,740 $9,640 $9,263 $8,615 $9,234 $40,282
Refunds 102 23
Growth portion - Existing Debt Repayment 2,174 1,990 2,042 1,989 1,930 1,137 1,117 2,864
Growth portion - Debt authorized - Not issued 258 258 477 3,838 19,190
Forecasted Future Debt (3) 54 570 9,763
Drawdowns - Current Year 2,293 6,645 8,491 5,713 6,043 5,307 973 5,600
- Prior Years 593 7,557
Total drawdowns (2) $5,162 $16,215 $10,533 $7,960 $8,231 $6,975 $6,498 $37,417
Ending Balance $15,245 $5,469 $2,207 $1,680 $1,032 $1,640 $2,736 $2,865
(2) Drawdowns are based on full capital needs and not intended to project the actual cash flow of funds being utilized in a particular year.
Forecast
Notes:
(1) This transfer includes the Residential, Institutional and Commercial DC Incentive Program Reserve Funds.
(3) Effective August 4, 2014 Council approved the adoption of the new Development Charge policy, a component of which is directed to Sewer
Services. Development charges reduce the demands on sewer rates with respect to funding capital requirements for growth related expenses. At
times, it may be necessary to finance these growth related capital requirements through issuance of debt. Future payments on this debt will be
financed through capital development charges.
78
Wastewater and Treatment
Reserve Funds and Reserves
City Services Major SWM Levies Actual Projected ApprovedReserve Fund 2013 2014 2015 2016 2017 2018 2019 2020 - 2024
Opening Balance 10,509 13,816 1,093 3,978 2,654 2,439 2,407 4,563
Levies 5,966 6,172 8,729 9,088 9,377 9,413 9,448 46,165
Tsf from Industrial DC Incentive Program RF 1,609 1,609 1,609 1,609 1,594 8,187
Tsf from DC Incentive Program Reserve Funds (1) 1,284 1,245 1,209 1,173 1,138 5,690
Interest 257 195 66 87 67 64 91 506
$16,732 $20,183 $12,781 $16,007 $14,916 $14,698 $14,678 $65,111
Refunds 167 40
Growth portion - Existing Debt Repayment 726 1,192 1,637 1,641 1,643 1,642 1,641 5,754
Growth portion - Debt authorized - Not issued 1,165 3,083 3,901 3,901 19,505
Forecasted Future Debt (3) 781 28,016
Drawdowns - Current Year 23 6,037 7,166 10,547 7,751 6,748 3,792 9,474
- Prior Years 2,000 11,821
Total drawdowns (2) $2,916 $19,090 $8,803 $13,353 $12,477 $12,291 $10,115 $62,749
Ending Balance $13,816 $1,093 $3,978 $2,654 $2,439 $2,407 $4,563 $2,362
(2) Drawdowns are based on full capital needs and not intended to project the actual cash flow of funds being utilized in a particular year.
Wastewater Rate Actual Projected Approved
Stabilization Reserve (1) 2013 2014 2015 2016 2017 2018 2019 2020 - 2024
Opening Balance 1,887 1,887 1,887 1,887 1,887 1,887 1,887 1,887
Contributions
$1,887 $1,887 $1,887 $1,887 $1,887 $1,887 $1,887 $1,887
Drawdowns
Ending Balance $1,887 $1,887 $1,887 $1,887 $1,887 $1,887 $1,887 $1,887
Notes:
(1) This reserve was established to assist with future year shortfalls in revenue and/or emergency expenditures in the wastewater operating budget. The
reserve balance may increase/decrease subject to the 2014 year end operating position.
($000's)
Notes:
Forecast
(3) Effective August 4, 2014 Council approved the adoption of the new Development Charge policy, a component of which is directed to Stormwater
Management Services. Development charges reduce the demands on sewer rates with respect to funding capital requirements for growth related
expenses. At times, it may be necessary to finance these growth related capital requirements through issuance of debt. Future payments on this debt
will be financed through capital development charges.
(1) This transfer includes the Residential, Institutional and Commercial DC Incentive Program Reserve Funds.
Forecast
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Wastewater and Treatment
Reserve Funds and Reserves
Efficiency, Effectiveness & Actual Projected ApprovedEconomy Wastewater Reserve (1) 2013 2014 2015 2016 2017 2018 2019 2020 - 2024
Opening Balance 899 1,194 1,292 1,292 1,292 1,292 1,292 1,292Contributions 295 98
$1,194 $1,292 $1,292 $1,292 $1,292 $1,292 $1,292 $1,292
Drawdowns Ending Balance $1,194 $1,292 $1,292 $1,292 $1,292 $1,292 $1,292 $1,292Notes:
Sump Pump, Sewage Ejector and Actual Projected ApprovedStorm PDC Program Reserve Fund (1) 2013 2014 2015 2016 2017 2018 2019 2020 - 2024
Opening Balance 514 524 538 552 567 582 597 613Contributions - Surplus 0Interest 10 14 14 15 15 15 16 86
$524 $538 $552 $567 $582 $597 $613 $699
Drawdowns Ending Balance $524 $538 $552 $567 $582 $597 $613 $699
Notes:
Disconnection of Sewer
Cross-Connection Loan Program Actual Projected ApprovedLoan Program Reserve Fund (1) 2013 2014 2015 2016 2017 2018 2019 2020 - 2024
Opening Balance 102 104 107 110 113 116 119 122Contributions - Surplus 0Interest 2 3 3 3 3 3 3 15
$104 $107 $110 $113 $116 $119 $122 $137
Drawdowns Ending Balance $104 $107 $110 $113 $116 $119 $122 $137
Notes:
(1) This reserve fund was established in 2011 to provide funding for the Sewer Cross-Connection Loan Program to provide financial assistance to
those residential dwellings with a confirmed cross-connection to an existing storm sewer that services that street. Repayment will be made over 10
years.
(1) Beginning in 2004, all positions, with some exceptions, are subject to 90 days savings corporately. The savings from these positions are
contributed to Efficiency, Effectiveness and Economy reserves to be used as a one-time funding source for initiatives recommended by the Senior
Leadership Team.
($000's)
Forecast
Forecast
Forecast
(1) This reserve fund was established in 2009 to provide funding for the Grant Program for Sump Pump, Sewage Ejector and Storm Private Drain
Connection or other mechanisms or capital works to fund protection from basement flooding, once the balance of the capital project for the current year
has been exhausted.
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Wastewater and Treatment
2015 Debt Summary
Capital Projects Funded by Rate Supported Debentures 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Annual Debt Servicing Costs 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Rate Supported Principal and Interest Payments 13.1 13.0 12.8 12.1 12.0 11.7 11.2 7.8 6.7 6.4
Industrial Oversizing Reserve Fund Debt:
Annual Debt Servicing Costs Through Industrial
Oversizing Reserve Fund2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Rate Supported Principal and Interest Payments 0.0 0.9 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3
($ millions)
Wastewater and Treatment
Debt Summary - Rate Supported
2021 2022Projected Debt Financing (Rate Supported) 20232015 2016
The Wastewater and Treatment capital budget forecast does not have debt financing in the 2015 - 2024 capital plan as
highlighted below.
As at June 30, 2014, the authorized but unissued debt was $30.5 million with $3.5 million of debt issued on May 9, 2014. The
outstanding issued debt level projected for the end of 2014 is $74.3 million. The debt servicing budget for 2015 is $13.1 million.
As at June 30, 2014, the Industrial Oversizing Reserve Fund will have approximately $10.4 million of authorized but unissued
debt and no outstanding issued debt. Debt servicing costs are anticipated to increase to $1.3 million by 2017 with the issuance
of the authorized debt.
The capital financing plan that supports the 20 Year Wastewater System Plan relies on rate increases of 7.0% for 2015, and
modest rate increases of 3.0% per year thereafter. This will ultimately result in reduced debt financing and continue the shift to
more pay-as-you-go funding.
20242017 2018 2019 2020
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Capital Projects Funded by Non Rate Supported
Debentures19.2 28.1 13.6 6.6 6.1 7.0 8.1 4.3 6.1 28.4
Annual Debt Servicing Costs funded through DC's 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Non Rate Supported (DC) Principal and Interest
Payments3.7 5.1 6.9 7.2 11.8 14.9 17.7 16.4 17.8 18.2
The dependence on debt financing is subject to development charge levies. The Wastewater and Treatment capital budget
forecast includes non rate supported debt financing of $127.5 million as part of the 2015 - 2024 capital plan as highlighted
below.
As at June 30, 2014, the authorized but unissued debt was $59.2 million with $5.8 million of debt issued May 9, 2014. The
outstanding issued debt level projected for the end of 2014 is $22 million.
202320202016 2017 2018 2019 2022
The debt projections above are based on a modest pace of spending against approved capital project budgets and the
proposed capital plan. If the pace of spending increases, debt will be issued sooner, and the total debt outstanding along with
the annual debt servicing costs could exceed current projections.
2015Projected Debt Financing (Non Rate Supported) 2021
The City as a whole cannot devote more than 25% of its “own source” revenues to debt repayments, and this restriction has
also been applied to the Wastewater and Treatment budget in accordance with the 20 Year Wastewater System Plan
Principles.
Wastewater and Treatment
Debt Summary - Non Rate Supported
2024
Non rate supported debt in the Wastewater and Treatment budget is funded through Development Charges (DC) in accordance
with the 2014 DC Background Study rather than sewer rates. The funding of this debt is identified in the reserve fund section of
the 2015 Wastewater and Treatment budget.
($ millions)
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Wastewater and Treatment
2015 Schedule of Rates & Charges
Appendix A
Effective Date
All 2015 rates and charges came into effect on January 1, 2015.
Monthly Rates and Charges
Sanitary System Charge /
Wastewater Usage Charge (1)
All Customers
First 7 m3
Next 8 m3
Next 10 m3
Next 10 m3
Next 215 m3
Next 6,750 m3
Next 43,000 m3
Over 50,000 m3
(1) The Sanitary Sewer System Charge/Wastewater Usage Charge is based on metered water consumption.
$0.6929/m3
$2.3728/m3
$0.7414/m3
$0.9647/m3
$2.2850/m3
$2.5389/m3
$0.7783/m3
Wastewater and Treatment
2015 Schedule of Rates and Charges
2015 Approved Rates2014 Approved Rates
$0.00/m3
$0.00/m3
$1.6609/m3
$0.8542/m3
$1.7772/m3
$0.8328/m3
$0.9140/m3
$0.9016/m3
$2.1355/m3
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Wastewater Infrastructure Charge
Meter Size
16 mm
19 mm
25 mm
40 mm
50 mm
76 mm
100 mm
150 mm
200 mm
250 mm
Storm Drainage Charge
Monthly Rate
Monthly Rate
per Hectare Monthly Rate (1)
Monthly Rate
per Hectare (1)
Residential, land area equal to or below 0.4 hectares $13.78
Institutional, land area equal to or below 0.4 hectares $13.66
$14.78
Industrial, land area above 0.4 hectares $112.68
$75.12
$14.49
$10.87
Land area above 0.4 hectares $120.57
Land area equal to or below 0.4 hectares
Residential, land area equal to or below 0.4 hectares
without a storm sewer within 90m
(1) 2015 rates are consistent with the phase-in of the Storm Drainage Charge endorsed in principle by Council and
reflected in the Wastewater and Stormwater By-law (WM-28) effective April 16, 2013, adjusted for the approved 2015 rate
increase.
$777.17 $831.57
$1,332.29
Residential, Institutional and Commercial, land area
$194.29 $207.89
Commercial and Industrial, land area equal to or
$27.76 $29.70
$55.51
$1,782.44
$1,425.55
$1,665.83
2014 Approved Rates
Monthly Rate
2015 Approved Rates
$16.66 $17.83
Wastewater and Treatment
2015 Schedule of Rates and Charges
$59.40
$88.82 $95.04
$333.07 $356.38
$11.89$11.11
Monthly Rate
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2015 Schedule of Rates and Charges
2014 Approved Rates 2015 Approved Rates
Per Metre of Frontage Per Metre of Frontage
Sanitary Sewer $206.62/m frontage $221.08/m frontage
Storm Sewer - Residential $191.29/m frontage $204.68/m frontage
Storm Sewer - All Lands excl. Residential $382.57/m frontage $409.35/m frontage
Hauled Liquid Waste Disposal
$11.77 per 1,000 litres $12.59 per 1,000 litres
Leachate $21.66 per 1,000 litres $23.18 per 1,000 litres
High Strength Sewage Service Charge $0.545/m3
$0.583/m3
Wastewater and Treatment
Miscellaneous Rates and Charges
Frontage Charge
Hauled Liquid Waste excl. Leachate
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2015 Schedule of Rates and Charges
2014 Approved Rates 2015 Approved Rates
New PDC installation or existing PDC
replacement - construction of sewer -
sanitary
$2,000 $2,000
New PDC installation or existing PDC
replacement - construction of sewer -
storm
$2,000 $2,000
New PDC installation or existing PDC
replacement - excavation$2,400 $2,400
Repair or replace existing PDC - no
construction$5,000 $5,000
New PDC installation or existing PDC
replacement - construction of sewer -
sanitary
$4,000 $4,000
New PDC installation or existing PDC
replacement - construction of sewer -
storm
$4,000 $4,000
New PDC installation or existing PDC
replacement - excavation$5,000 $5,000
Wastewater and Treatment
Private Drain Connection Charges
Single Detached, Semi-Detached, Duplex
All Other Properties
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Wastewater and Treatment
Appendix B
2015 Business Plan & Business Cases
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Business Plan: Wastewater Removal and Stormwater Management
How does this service contribute to the results identified in the City of London Strategic Plan?
A Sustainable Infrastructure
Compliance with all regulatory requirements to operate, sustain, expand and improve the wastewater and stormwater infrastructure for efficiently delivering high quality and reliable environmental and drainage services to London’s customers for all residential, institutional, commercial, and industrial needs.
Name the main activities done to provide this service:
Name The Activities Done To Provide This Service How Much Did We Do?
(optional)
Is The City Mandated To Provide This
Service?
Can The Level Of
Service Be Changed?
1. Operation, Maintenance and Repair of the Wastewater Conveyance and Treatment Systems and Stormwater Management System
65-85B L of wastewater treated annually
Up to 412B L of stormwater managed annually
700-1,000 km of sanitary sewers flushed annually
Yes Yes (with limitations)
2. Renewal of Existing Infrastructure 20-25 km of sewers rehabilitated annually
8-25 km of sewers installed annually (new and replacement)
Approx. 1-2 stormwater management facilities rehabilitated annually
Approx. 2 km of watercourses rehabilitated annually
Approx. 3.5 ha of wetland reclamation completed annually
Yes Yes (with limitations)
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Name The Activities Done To Provide This Service How Much Did We Do?
(optional)
Is The City Mandated To Provide This
Service?
Can The Level Of
Service Be Changed?
3. Extension of Services for Growth Approx. 30km of sanitary & storm sewers assumed annually
Approximately 4.6 km of new storm sewer installed in areas that did not have storm sewers
Approx. 5 stormwater management facilities constructed annually
Approx. 5 stormwater management facilities assumed annually
Yes Yes (with limitations)
What is the current state of this service?
Current objectives of the Wastewater utility include:
Achieving a financially sustainable 1 utility and addressing lifecycle renewal, growth and economic development
objectives of the City while ensuring regulatory compliance
Maintaining / improving the existing level of service provided to the citizens and businesses of London
Maintaining best-in-class standings with the National Benchmarking Initiative
Minimizing the number of sewer-related blockages
Reducing the number of basement flooding occurrences
Improving the health of the Thames River
Providing support for the City’s Industrial Land Development Strategy
These objectives are being driven by a number of factors, including:
Customer expectations of the services that should be provided
1 Financial Sustainability is defined as the movement toward annual rate increases that can be maintained at or near the annual rate of inflation
based on a combination of CPI and the Construction Price Index with appropriate use of debt financing, adequate reserve funds and the appropriate investment in capital.
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Council-approved level of service requirements
Council-endorsed strategic initiatives
City of London Strategic Plan
Climate Change Adaptation Strategy
A number of challenges are facing the Wastewater service area in the achievement of these objectives:
Declining revenue base, aging infrastructure (much of which is reaching the end of its useful life at the same time),
increasing cost drivers over which the utility has no direct control (power, labour, etc.), an aging workforce, and ever-
increasing regulatory requirements
Extreme weather events associated with climate change are placing an additional burden on stormwater and
wastewater collection systems and also pose a threat to many wastewater facilities located in close proximity to rivers
and on floodplains. Changing climate conditions are also making the updating of subwatershed studies more
challenging.
Increasing customer expectations (e.g. many more homes are now utilizing their basements as living quarters and
therefore there is a customer expectation that no damages to this space should occur via sewage backups even under
changing climate conditions)
The large and growing geographic size of London makes service delivery challenging (3,800 square kilometers of land
drainage flows through London – improving water quality in the Thames River therefore needs to have a watershed
wide approach)
Current economic climate demands that fully serviced industrial lands are available as opportunities arise
Changing provincial and federal regulations
Some of the challenges noted above have been managed with positive results in 2014 through the following achievements: Sewer Operations
Completed five stormwater management pond rehabilitations
Rehabilitated designated sections of the existing Ridout Street brick sewer, utilizing trenchless technology (multi-year
project)
Completed pipe rehabilitation on designated sections of the Gordon trunk sanitary sewer via trenchless technology
Working towards a contract with a software vendor to undertake the implementation of a Computerized Maintenance
Management System, which will bring the City’s utility maintenance and work flow management up to industry
standards. This will result in staff resource efficiencies, enhanced documentation, and cost tracking of maintenance
activities, while also ensuring compliance with regulatory requirements
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Wastewater Treatment Operations
Completed construction of the Southern Ontario Water Consortium-London Wastewater Node at Greenway PCP
Commenced Greenway PCP Expansion detailed design (multi-year project) to ensure sufficient treatment capacity is
available to service future growth and manage wet weather flows
Wastewater and Drainage Engineering
Purchased and installed 13 permanent flow monitoring gauges to comply with Federal Fisheries Act Regulation for
Municipal Wastewater Effluents
Completed Phase 1 and commenced Phase 2 of Council’s Climate Change Adaptation Strategy for the City’s water
resources and stormwater management strategy to deal with extreme storm events
Completed Phase One of the Pollution Prevention and Control Plan and commenced Phase Two
Stormwater Management Unit
Designed and constructed multiple regional stormwater management facilities
General
Completed the Southwest Area Sanitary Servicing Master Plan
Completed the 2014 Wastewater Servicing Master Plan Update, 2014 Stormwater Master Plan Update and
Development Charges Background Study
Supported the preparation and sale of serviced industrial lots
Revised revenue and expenditure forecasts
What has been done to manage the budget?
The service area has been actively managing its budget by implementing management led initiatives aimed at creating efficiencies,
avoiding costs and generating revenue. These include the following:
Efficiencies / Costs Avoided
Previous 3 Years
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Amended the catchbasin cleaning program with risk and Council approved quality standards as primary considerations. The
recently implemented strategic plan frees existing staffing resources to meet the Sewer Operations Division’s new work
demands such as annual maintenance on assumed stormwater management facilities.
Implementation of a more aggressive approach to PDC replacement where lining is always given first consideration over the
more costly and traditional open cut methods.
Completed biosolids upgrades at Greenway Pollution Control Plant, resulting in reduced natural gas and chemical
consumption in addition to labour savings. According to the PwC audit of this project, the total estimated annual operating
savings associated with this initiative is approximately $700,000 per year, with total capital savings of $33 million.
Implemented turbo blower upgrades at Adelaide, Oxford and Vauxhall Pollution Control Plants. These new and more efficient
blowers were made possible through cooperation from London Hydro and incentives through the Ontario Power Authority.
These blowers are anticipated to result in $170,000 in annual energy savings.
Revenue Generation / User Fee Increases
Previous 3 Years
Implemented a new Water and Wastewater rate structure effective March 1, 2013. The purpose of this new rate structure was
to ensure fairness and equity for all customers while also balancing conservation efforts, economic development and the
need to provide a more stable, predictable revenue stream in response to declining consumption.
Other rate increases over the past 3 years have been in keeping with the Council-endorsed rate plan in order to achieve
financial sustainability in 2016.
What is the future direction of this service?
Core business objectives will remain consistent; however, specific attention will be given to opportunities for synergistic
activities in four areas: regulatory compliance, growth, efficiency and best management practices, with sustainability being a
common theme in all areas.
The drivers for these four activity areas include: protecting public health and private property; meeting all regulatory
requirements; supporting Council’s objectives of economic development and growth; gaining efficiencies to reduce long term
92
costs; investing in succession planning; harnessing innovative technologies; and maintaining a high level of service to
consistently meet customers’ expectations.
Continuing focus on delivering a financially sustainable utility in the near term and maintaining infrastructure levels of service
at an appropriate level of risk as the 20-Year Capital Plan is implemented.
What future initiatives can be contained within the existing service level budget?
2015 Budget
Compliance:
Continue to advance the Pollution Prevention and Control Plan (PPCP) aimed at reducing the number of overflows in
both the collection system and at the wastewater treatment plants while helping to ensure wet weather flows are
treated to Ministry of Environment standards
Continue to report system overflows and bypasses to comply with Federal Fisheries Act Regulation for Municipal
Wastewater Effluents
Efforts will continue to improve the health of the Thames River and support the Council-endorsed strategic initiatives
underway, including:
investigation of opportunities for long-term funding from other sources,
strengthening collaboration with Western University and other research centres
Complete three (3) stormwater management facility rehabilitations and undertake a full cost analysis based on actual
work completed by others vs. by City forces.
Continue to monitor ongoing stormwater management facility annual maintenance and associated costs. Continue to
build a robust database for these City owned facilities to satisfy Ministry of Environment Certificate of Approval
requirements
Rehabilitate designated sections of the Gordon trunk sanitary sewer as the final phase of this multi-year project
Rehabilitate designated sections of the deteriorating Ridout Street brick sanitary trunk sewer, as part of a multi-
phase/year project
Start the process of reclaiming 30 hectares of wetland in the Dingman Creek Subwatershed
93
Growth:
Continue construction on the Greenway WWTP expansion / CSO treatment project
Construct the Hamlyn-Wonderland Sanitary Trunk sewer to accommodate growth in the southwest quadrant as per
the 2014 Wastewater Servicing Master Plan Update and Development Charge Background Study and the Southwest
Area Sanitary Servicing Master Plan
Continue to undertake applicable studies, designs and construction of stormwater management facilities in
accordance with the Growth Management Implementation Strategy (GMIS)
Complete updates to the water resources and slope stability components of subwatershed studies to establish water
resources and stormwater management criteria for future growth under existing and climate change conditions
Provide service area support for the Corporation’s Industrial Land Development Strategy
Efficiency:
Continue to implement a Computerized Maintenance Management System, to bring the utility’s maintenance and work
flow management up to industry standards. This will result in staff resource efficiencies, enhanced documentation, and
cost tracking of maintenance activities, while also aiding in compliance with regulatory requirements
Begin optimization projects at wastewater treatment facilities based on the results of the Wastewater Treatment
optimization strategy
Best Management Practices:
Measure and assess the effectiveness of the Sherwood Forest Disconnection Project while continuing to administer
and promote the Sump Pump Grant Program to further alleviate basement flooding
Consider implementing Storm Drainage Charges for vacant properties pending the outcome of a 2014 review.
Implement the strategy for achieving an appropriate minimum reserve fund balance for the utility, consistent with
corporate wide financial objectives
2016-2018 Forecast
Compliance:
Complete the first phase of a Thames River watershed-wide Water Management Study
Complete the plan and commence work on measures identified as part of the Pollution Prevention and Control Plan
Continue the stormwater management facility rehabilitation program, by rehabilitating an additional facility in 2016 and
another in 2017. Timing of future rehabilitations will be determined by a report generated in 2015
94
Complete the Burbrook Trunk Storm Sewer (ES3054) project that will allow sewer separation works to advance, which
will reduce the likelihood of sewer backups
Growth:
Complete Greenway plant expansion / CSO treatment project
Construct the next scheduled phases of sanitary trunk sewers to accommodate growth in the southwest quadrant as
per the 2014 Wastewater Servicing Master Plan Update and Development Charge Background Study and the
Southwest Area Sanitary Servicing Master Plan
Continue to provide storm/drainage and stormwater management servicing for the growth and prosperity of the City
Assume various stormwater management facilities constructed by developers
Implement various Development Charges-funded growth projects to support the Industrial Land Development Strategy
Efficiency:
Optimize the Computerized Maintenance Management System
Initiate long-term strategic planning based on preliminary results of the CMMS implementation
Continue optimization projects at wastewater treatment facilities which are expected to commence in 2015
Best Management Practices:
Initiate flood proofing works for Greenway and Vauxhall treatment facilities to reduce the risk of catastrophic flooding
in extreme weather events
Continue the reclamation and rehabilitation of watercourse functional performance and ecological health
What service adjustments do you plan to make?
2015 Budget
Addition of 2 new resources in the Stormwater Management Unit to support design and construction activities associated with the influx of additional stormwater management facilities to be constructed in new development areas over the next 10 years
2016-2018 Forecast
None anticipated at this time, although service adjustments may be required pending the outcome of the Pollution Prevention and Control Plan and Wastewater Treatment Optimization project
95
Key Performance Indicators
How Much?
Description of measure 2013 2014 2015 2016 2017 2018
1. Volume of wastewater treated (billion litres) 76.2 85.8 86.7 87.7 88.6 89.4
2. Volume of stormwater managed (billion litres) 412 412 412 412 412 412
3. Percentage of sanitary sewer system flushed (1) 86% 86% 81% 76% 67% 67%
4. Percentage of sewer system replaced, rehabilitated or relined
1.3% 1.5% 1.3% 1.4% 1.4% 1.4%
5. Percentage of stormwater management facilities rehabilitated (2)
8.3% 16.6% 10.0% 3.3% 3.3% 13.3%
How Well?
Description of measure 2013 2014 2015 2016 2017 2018
6. Average annual cost for residential customer (3) $426 $446 $475 $489 $504 $519
7. Percentage of Bio-chemical Oxygen Demand removed
99% 99% 99% 99% 99% 99%
8. Percentage of stormwater management facilities constructed as per the “Just in Time” Design and Construction Process
N/A N/A 100% 100% 100% 100%
Is Anyone Better Off?
Description of measure 2013 2014 2015 2016 2017 2018
9. Number of MOE effluent violations (4) 6 1 1 1 1 1
10. Percentage of flooding complaints addressed 100% 100% 100% 100% 100% 100%
11. Number of blocked sewers per 100km length 0.5 0.5 0.5 0.5 0.5 0.5
NOTE: 2013 values represent actual amounts; 2014-2018 values represent forecasts
(1) Current level of service requires the sanitary sewer collection system to be completely flushed once every 2 years.
(2) Based on 30 existing stormwater management facilities.
(3) Based on 2014 projected consumption of 171.9 m3 and does not incorporate future projected consumption declines. Actual cost
may be lower as a result.
(4) Not necessarily indicative of a risk to public health.
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2015 Business Case
Service: Wastewater and Treatment
Initiative: Additional 2 Full-time Positions – Stormwater Management (SWM) Unit
Financial Implications ($000)
Budget Type
Change to Gross
Expenditure
Change to Revenue
Net Change to WWT
Expenditures
2015 Impact
%
Incremental Net Change
Future Years $
2016
Incremental Net Change
Future Years $
2017
Incremental Net Change
Future Years $
2018
Ten Year Impact (if funding
not returned)
Capital Budget Incr/(Decr)
$0 $0 $0 0% $0 $0 $0 $0
Operating Budget Incr/(Decr)
$180 $0 $180 0.2% $0 $0 $0 $1,800
Staffing Implications
# of FTs Impacted #FTEs Impacted $ FTE Description
2.0 2.0 $180,000* 2 new FT positions
* Includes technology costs of $5,000.
Background
The SWM Unit requires 2 additional full-time positions in order to deliver the additional storm/drainage and stormwater management
(SWM) projects identified in the 2014 Development Charges (DC) Update.
These positions will assist with all engineering aspects of water resources planning, engineering design, contract preparation, construction
and remediation works of storm/drainage, SWM systems and open watercourses in order to sustain the City's stormwater assets and allow
land development to proceed within the City of London. Furthermore, these positions will assist with the evaluation and upgrades to SWM
97
facilities such that the works may be transferred in accordance with the City’s assumption process to the City’s Sewer Operations Division
in a fully functional condition and not require any significant maintenance for a considerable length of time. The current complement is
unable to absorb the additional work associated with the new projects identified in the 2014 DC Update. The capital plan included in 2015
approved budget includes approx. 46 SWM growth projects to be undertaken in the next 10 years. This excludes growth projects currently
underway, as well as all SWM lifecycle and service improvement projects. By comparison, the capital plan included in the 2014 approved
budget included only approx. 25 growth projects during the same period.
Performance Measures Impact
The addition of these positions is critical to ensuring the SWM Unit’s ability to construct 100% of the stormwater management facilities
required in accordance with the Unit’s “Just in Time” Design and Construction Process.
Impacts
a) Community
Development, particularly economic development and job creation, continues to be a priority of Council and Administration. In order for
new developments to proceed, however, it is often necessary to complete the required servicing works to facilitate that development.
Frequently this involves the construction of stormwater management or drainage infrastructure as evidenced by the influx of SWM projects
included in the 2014 DC Update. The addition of these two new positions will ensure that development is not unnecessarily delayed due to
a lack of resources to manage the completion of the required works.
b) Community Engagement
N/A
c) Other City of London Services
With the addition of these proposed positions, the SWM Unit’s objective is to be more responsive to the needs of other services. Ensuring
sufficient resources are available to manage the planned works will also ensure that the needs of other services are not sacrificed at the
expense of ensuring the necessary projects are completed in a timely fashion.
Risks
Should these positions not be approved, land development is at risk of not being able to proceed in a timely fashion as building permits are
not able to be completed until the storm/drainage and SWM facility projects are constructed and deemed functional and operational.
WASTEWATER & TREATMENT
2015 Budget
January 27, 2015