Toronto Water delivers water treatment and distribution, and wastewater collection and treatment services on demand to 3.6 million residents and businesses in Toronto, and portions of York and Peel.

Budget Notes

Provide quality water services through supplying drinking water and treatment of wastewater and storm water to residents, businesses and visitors in order to protect public health, safety and property in an environmentally and a fiscally responsible manner.

View Toronto Water Program Map in greater detail.

Toronto Water delivers water treatment and distribution, and wastewater collection and treatment services on demand to 3.6 million residents and businesses in Toronto, and portions of York and Peel.

2018 Budget Highlights

Toronto Water was able to offset initial gross expenditure pressures of $9.939 million through a combination of operational efficiencies and other base budget reductions resulting in a 0.5% net expenditure decrease prior to the additional sale of water revenues arising from the 5% water rate increase (effective January 1, 2018), while maintaining approved service levels for 2018.

Fast Facts

  • Treatment, transmission, storage, and distribution of over 1 billion litres of potable water daily is delivered to all industrial, commercial, institutional, and household water users in the City of Toronto, amounting to over 511,000 connections.
  • Over 1.5 billion litres of wastewater is collected and treated per day, from residents and businesses in Toronto and a portion of Peel Region.
  • City-wide stormwater management in order to protect private property and the environment.

Trends

  • Base water consumption (October to April) has declined by 1.6% annually (with the exception of 2016 as a result of hot and dry summer) on average over the last 10 years. The 2017 projected consumption of 320 million cubic meters is significantly lower than the 374 million cubic meters consumed in 2005.
  • Lower water consumption despite increasing population, combined with aging infrastructure and need for operational resilience during extreme weather events, has placed particular demand on Toronto Water’s infrastructure services.
  • In response to that demand, water rates are recommended to increase by 5%, with all the increased revenue going to fund capital infrastructure repairs and resiliency that supports reliable service delivery.

Key Service Deliverables for 2018

Toronto Water manages one of the largest water and wastewater systems in North America, providing services 24 hours a day, seven days a week.

The 2018 Recommended Operating Budget will enable Toronto Water to continue to:

  • Ensure delivery of water and wastewater services for 3.6 million residents and business in Toronto.
  • Provide treatment and supply of 435 billion litres of water (including York Region).
  • Continue collection and treatment of 400 billion litres of wastewater.
  • Continue maintenance and repair of 6,100 km of watermains, 4,100 km of sanitary sewers, 5,000 km of storm sewers, and over 1,400 km of combined sewers.
  • Replace 5,000 sub-standard water services.
  • Repair 1,600 broken watermains.
  • Provide Environmental Monitoring and Protection including on-going public consultations and awareness programs.

Our Key Issues & Priority Actions

  • Declining water consumption resulting in lower revenues needed to support capital requirements.
    • The 2018 Recommended Operating Budget includes a water rate increase of 5% effective January 1, 2018.
  • Minimizing operating cost pressures arising from legislative requirements and the need to comply with Provincial and Federal regulations, as well as inflationary factors and operating impacts of completed capital projects.
    • A combination of efficiencies found through ongoing optimization at treatment plants and pumping stations to minimize energy and other costs, while meeting required legislative standards, has enabled Toronto Water to offset all of the 2018 operating budget pressures.
  • Providing efficient and effective response to customer demands:
    • Toronto Water continues with the Customer Care Organizational Realignment to increase customer satisfaction through improved service processes, customer handling, communication and notification.

2018 Operating Budget Highlights

  • The 2018 Recommended Operating Budget for Toronto Water of $446.383 million in gross expenditures provides funding to:
    • Continue maintenance and repair over 16,500 km of watermains, sanitary, storm, and combined sewers;
    • Continue repair and replacement of approximately 1,600 broken watermains and 5,000 sub-standard services.
  • In addition to offsetting all of its 2018 operating budget pressures, Toronto Water has achieved further net savings of $1.815 million resulting in a 0.5% net operating budget decrease, due to:
    • Water and wasterwater utility efficiencies ($2.495 million).
    • Reduced use of chemicals from the projected efficiencies in the liquid oxygen treatment ($0.136 million).
    • Reduced material consumption and other base expenditure savings ($0.302 million).
    • Higher non-sale of water revenues due to increase in service demand from new developments and private water applications ($1.500 million).

Toronto Water is responsible for: water treatment and supply; wastewater collection and treatment; and stormwater management across the City. It services 3.6 million residents and businesses in Toronto and portions of York and Peel Region.

Toronto Water has stewardship of an inventory of capital assets valued at $28.561 billion. Toronto Water maintains two categories of capital assets: linear infrastructure, such as distribution (5,551 km) and transmission (550 km) watermains, sanitary (3,730 km), combined (1,411 km) and storm (4,981 km) sewers; and facilities/plant assets such as water filtration (4) and waste water treatment (4) plants, water (18), wastewater (67), combined (8) and stormwater (12) pumping stations, as well as a variety of reservoirs, storage and detention tanks.

The Program’s 10-Year Capital Plan is $12.724 billion with $7.496 billion or 59% allocated to Health and Safety, Legislated and State of Good Repair (SOGR) projects, which remain a priority for Toronto Water given the significant backlog in infrastructure renewal. Funding of $5.228 billion is also included in the 2018-2027 Capital Budget and Plan for investments in Service Improvement and Growth Related projects, including Basement Flooding Protection and Wet Weather Flow Master Plan projects.

Where does the money go?

The 2018–2027 Recommended Capital Budget and Plan totalling $12.724 billion provides funding for:

  • Health and Safety, Legislated and State of Good Repair (SOGR) projects which are the focus of the 10-Year Capital Plan totaling $7.496 billion or 59% of program funding and are allocated for on-going state of good repair projects (including health and safety and legislated projects) for linear infrastructure and treatment facilities.
  • Service Improvement projects totaling $3.855 billion or 30% of funding, and include: the Basement Flooding Protection Program to reduce the risk of future flooding from extreme storm events ($1.542 billion); and Wet Weather Flow Master Plan to improve water quality and city’s environments ($1.277 billion).
  • Growth related projects totaling $1.374 billion or 11% of the total funding will provide the necessary servicing capacity for projected population growth. The largest projects are the Trunk Sewer and Pumping Station projects ($0.304 billion) and New Service Connections ($0.388 billion).

Where does the money come from?

The Recommended 10-Year Capital Plan will be funded by:

  • Toronto Water’s Capital Financing Reserves totaling $11.993 billion and accounting for approximately 94% of program capital financing sources.
  • Development charges for growth related projects, capital cost sharing with York Region, and Provincial/Federal grants totaling $0.732 billion or 6% of the total capital financing.

State of Good Repair Backlog

The 10-Year Recommended Capital Plan includes cash flow funding of $6.210 billion for State of Good Repair to address the backlog in capital repairs. The SOGR backlog of $1.482 billion or 5.2% of asset replacement value in 2017 (projected) will be effectively eliminated by the end of 2027.

Key Issues & Priority Actions

  • Aging Infrastructure – Toronto Water’s infrastructure is aging (some of the City’s pipes are 100 years old) and it has an accumulated state of good repair backlog estimated at $1.482 billion in particular for linear infrastructure, which may result in service interruption.
    • The 10-Year Capital Plan funding of $6.210 billion for SOGR will effectively eliminate backlog by 2027.
  • Stormwater Management and ResiliencySignificant investment is required to manage basement flooding and other stormwater issues across the City. Funding for stormwater management represents approximately 25% of the 10-Year Capital Plan’s expenditures.
    • The 10-Year Capital Plan includes an added $138.179 million for Wet Weather Flow projects that will improve the City’s resiliency to extreme weather events.
  • Strict Regulatory Control and Oversight – The water and wastewater industry continues to experience increased legislative and regulatory reform.
    • The 10-Year Capital Plan includes funding of $644.020 million for the design and construction of a new effluent disinfection system and outfall at the Ashbridges Bay Water Treatment Plant to meet the most recent federal regulations.
  • Long-term Financial Sustainability & Planning for Growth – The 10-Year Capital Plan relies primarily on successive water rate increases of 5% in year 2018 and 3% thereafter.
    • The City of Toronto is experiencing significant growth. Development charges are insufficient to fund the growth related share for projects that are eligible for development charge funding, resulting in approximately $200.0 million in additional draws from Toronto Water’ capital reserves to accommodate development growth over the next 10 years.

2018 Capital Budget Highlights

The 2018 Recommended Capital Budget for Toronto Water of $865.221 million, excluding carry forward funding, will:

  • Deliver continued state of good repair projects to address infrastructure renewal such as Watermain Replacement and Rehabilitation ($134.684 million), Sewer System Replacement and Rehabilitation ($83.550 million) and Trunk Sewer and Pumping Station projects ($46.339 million)
  • Implement Basement Flooding Protection projects ($43.078 million), Wet Weather Flow Master Plan ($42.043 million), and Erosion Control projects ($2.827 million)
  • Continue to provide funding for the TRCA erosion control projects including critical erosion sites ($13.832 million).

Toronto Water 2018 Budget Infographic

Toronto Water Infographic