The Budget Committee recommends to the Executive Committee that:

1.         City Council consider the report (November 6, 2012) from the Acting Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water concurrently with the Recommended 2013-2022 Capital Plan and the 2013 Operating Budget, and that:

a.         Effective January 1, 2013, the combined water and wastewater rates charged to metered consumers shall be as shown below and in Appendix B attached to the report (November 6, 2012) from the Acting Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water;

b.         The water and wastewater rates charged to flat rate consumers be increased by 9%, effective January 1, 2013, to the rates shown in Appendix B attached to the report (November 6, 2012) from the Acting Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water;

c.         Effective January 1, 2013, the water and wastewater service fees shall be as shown in Appendix C attached to the report (November 6, 2012) from the Acting Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water;

d.         Effective January 1, 2013, the fee basis for water drawn from unmetered hydrants, less than or equal to 50 cubic metre, be changed from "Flat Rate" to "Per 50 cubic metres" and the fee amount be changed  from "$100" to "50 m3 at Block 1 Water Rate" as set out in Appendix C - Schedule 2, Water Services, Ref. No. 18, attached to the report (November 6, 2012) from the Acting Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water.

2.         City Council, with respect to the City's industrial waste surcharge program:

a.         Amend Municipal Code Chapter 681, Sewers as necessary to include Total Kjeldahl Nitrogen (TKN) as a treatable parameter including adding TKN as a treatable parameter in subsection 681-6B(1) and as a parameter in subsection 681-2C(1)(b) and (c);

b.         Charge effective January 1, 2013, a fee of $800 for the establishment of any new industrial waste surcharge agreement, as set out in Appendix C - Schedule 3, Wastewater Services, Ref. No. 20 attached to the report (November 6, 2012) from the Acting Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water;

c.         Approve effective January 1, 2013, the rates for treatable parameters applying to industrial waste surcharge agreements as shown below and in Appendix C - Schedule 3, Wastewater Services, Ref. No. 1.1, 1.2, 1.3 and 1.4 attached to the report (November 6, 2012) from the Acting Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water: 

d.         Effective January 1, 2013, Type1 ODF Formula – Unit Cost per Kilogram (see Appendix D to the report (November 6, 2012) from the Acting Deputy City Manager and Chief Financial Officer and the General Manager, Toronto Water, hereafter called the "Type 1 Formula") be used for the calculation of surcharge fees, modified such that the calculation of surcharge fees be applied only to the parameter that exceeds the  Municipal Code Chapter 681, Sewers limits the most., which implements the Recommendations from the Public Works and Infrastructure Committee (Item PW18.1).

3.         City Council, with respect to assistance for low-income seniors and low-income disabled persons:

a.         Set the rebate for eligible low-income seniors and low-income disabled persons at a rate of $0.8141 /m3, effective January 1, 2013, representing a 30% reduction from the Block 1 rate (paid on or before the due date).

Toronto Water - 2013 Recommended Operating Budget

4.         City Council approve the 2013 Recommended Operating Budget for Toronto Water of $394.395 million gross and $546.402 million in capital-from-current contribution, comprised of the following services:

5.         City Council approve Toronto Water's services and 2013 proposed service levels, as outlined on page 6 of the 2013 Recommended Operating Budget for Toronto Water and associated staff complement of 1,724.8.

6.         City Council consider this report concurrently with the "Sewers By-law Administration – Response to Request for Information" report (September 27, 2012) from the General Manager, Toronto Water.

Toronto Water - 2013 Recommended Capital Budget

7.         City Council approve the 2013 Recommended Capital Budget for Toronto Water with a total project cost of $708.782 million, and 2013 cash flow of $657.266 million and future year commitments of $2.059 billion comprised of the following:

a.         New Cash Flow Funding for:

i.          109 new / change in scope sub-projects with a 2013 total project cost of $708.782 million that requires cash flow of ($1.966 million) in 2013 and a future year cash flow commitment of $242.619 million in 2014; $131.968 million in 2015,  $95.697 million in 2016, $93.550 million in 2017, ($20.057 million) in 2018, ($1.509 million) in 2019; $55.292 million in 2020, $42.308 million in 2021, and $70.880 million in 2022;

ii.         76 previously approved sub-projects with a 2013 cash flow of $527.842 million; and a future year cash flow commitment of $386.809 million in 2014; $334.712 million in 2015,  $206.080 million in 2016, $115.026 million in 2017, $123.831 million in 2018, $102.395 million in 2019; $45.303 million in 2020, and $33.932 million in 2021; and

b.         2012 approved cash flow for 83 previously approved sub-projects with carry forward funding from 2012 into 2013 totaling $131.390 million.

8.         City Council approve the 2014-2022 Recommended Capital Plan for Toronto Water totaling $5.601 billion in project estimates, comprised of $113.152 million in 2014; $316.637 million in 2015; $501.763 million in 2016; $618.179 million in 2017;  $723.361 million in 2018; $777.748 million in 2019; $817.309 million in 2020; $880.760 million in 2021; and $851.607 million in 2022.

9.         City Council consider operating costs of $5.675 million net in 2013, $2.432 million net in 2014; $0.347 million net in 2015; $0.247 million net in 2016; $5.372 million net in 2017; $5.530 million net in 2018; and $0.053 million net in 2019; emanating from the approval of the 2013 Recommended Capital Budget for Toronto Water for inclusion in the 2013 and future year operating budgets.

10.       City Council make the necessary amendments to Municipal Code Chapter 441 - Fees and Charges, Municipal Code Chapter 849 - Water and Sewage Services and Utility Bill, and Municipal Code Chapter 681- Sewers, and any other necessary Municipal Code Chapters as may be required, to give effect to the Recommendations above.

11.       City Council grant authority to the City Solicitor to introduce any necessary Bills required to implement these recommendations, subject to any necessary refinements, including stylistic, format and organization, as may be identified by the City Solicitor, the Deputy City Manager and Chief Financial Officer and General Manager, Toronto Water.

12.       City Council authorize the appropriate City officials and directed to take the necessary actions to give effect thereto.