Backgrounder: City of Toronto – Rate Supported Budgets for Solid Waste Management Services and Toronto Water, November 3, 2017
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Solid Waste Management Services and Toronto Water are fee-for-service or rate-based programs. They are funded primarily by the user in the form of fees. In turn, this revenue pays for the services that are provided and for the infrastructure to deliver them.
Solid Waste Management Services
- Provides solid waste collection services to Toronto residents, businesses, charities, institutions, religious organizations and school boards as well as City divisions, agencies and corporations.
- Services include collection and management of Green Bin organics, Blue Bin recycling, garbage, oversized waste, yard waste, electronics and household hazardous waste.
- Maintains and services over $542 million worth of infrastructure assets including seven Transfer Stations (six with Household Hazardous Waste Depots); one operating landfill – Green Lane Landfill and 160 closed landfills; two Source-Separated Organics Processing Facilities (one undergoing expansion); and five work yards.
- Supports city beautification and cleanliness by collecting garbage and recycling from 10,000 park bins and 9,500 street bins and cleaning up after events for more than 1,000 special events a year.
- Managed over 900,000 tonnes of waste (all materials) in 2016.
- Handled 180,437 customer service requests in 2016 – 493/day, or one every three minutes – and achieved an 89 per cent resolution rate within service-level timelines.
The recommended 2018 Solid Waste Management Services budgets consist of:
- Operating Budget of $382.2 million plus a capital reserve contribution of $23 million
- Capital Budget of $114.4 million (composed of a recommended $92.8 million of new capital funds in 2018 and carry-forward funding of $21.6 million from 2017).
- 10-Year Recommended Capital Plan of $648.5 million.
- A 1.9 per cent blended rate increase, expected to generate approximately $5.5 million and effective January 1, 2018, is recommended.
- Rate increases vary based on customer group. Multi-Residential properties (apartment buildings and condos) have a 1.0 per cent rate increase. Single Family Residential, Residential Units Above Commercial Properties have a 2.0 per cent increase. Non-Residential customers (industrial, commercial, institutional properties, schools, as well as City divisions, agencies and corporations) have a 5.2 per cent increase. Detailed rate charts are available at http://ow.ly/Shyg30gl4P7.
- Differential rates per customer will allow for greater financial sustainability and full cost recovery by customer type.
- No new service fees
- No new service changes
2018 key priority actions
- Blue Bin program contamination reduction
- Commissioning of Dufferin Organics Processing Facility
- Development of renewable natural gas infrastructure and future revenue streams
- Waste Free Ontario Act negotiations
- Review of opportunities for decommissioned Dufferin Material Recovery Facility
- Development of new key performance indicators (KPIs)
- Textiles diversion research
- Implementation of business intelligence technology
- Provides approximately 435 billion litres of safe drinking water to approximately 3.6 million residents and businesses in Toronto and portions of York Region
- Provides the collection and treatment of approximately 400 billion litres of wastewater for 2.8 million residents in Toronto and a portion of Peel Region
- Manages stormwater caused by rain and melted snow to help prevent basement flooding and improve the quality of stormwater released back into Toronto’s environment
- Maintains and services assets worth $28.3 billion including four water and four wastewater treatment plants
- Major, multi-year projects awarded in 2018 for $1.6 billion include Don and Central Waterfront phase 1; Ashbrides Bay Wastewater Treatment Plant multiple upgrades to disinfection, technology, capacity and condition; Rosehill Reservoir rehabilitation; and a Scarborough Transmission Watermain
The recommended 2018 Toronto Water budget consists of:
- Operating Budget of $446.4 million plus a capital reserve contribution of $842.6 million
- Capital Budget of $964 million
- 10-year Capital Plan Budget of $12.8 billion, including:
- $4.3 billion for water treatment and supply
- $5.4 billion for wastewater treatment and collection, and
- $3.1 billion for stormwater management (including basement flooding prevention and wet weather flow management to improve Lake Ontario water quality).
- A 5 per cent water rate increase, effective January 1, 2018, will bring the total anticipated revenue for 2018 to $1.289 billion (inclusive of the water rate, all user fees and other revenues).
- For the average Toronto household using 260 cubic metres of water a year, this will result in:
- a projected daily cost of $2.71
- an annual increase of $47, and
- a projected total annual cost of $989.
2018 Key Initiatives
|Infrastructure renewal funding*||
|Wastewater treatment plant upgrades||
|Watermain and sewer (including trunk mains and engineering costs)||$409 million||$4.694 billion|
|Wet Weather Flow Master Plan||
|Basement Flooding Protection Program||
*Toronto Water has the largest infrastructure renewal backlog of urban centres in Canada at $1.54 billion. By investing $591 million in 2018 in infrastructure renewal funding and $6.265 billion over 10 years, the City will eliminate all but $156 million of the backlog by 2027.
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Solid Waste Management Services: Tamara Staranchuk, Strategic Communications,
Toronto Water: Kris Scheuer, Strategic Communications, 416-338-0698, Kris.Scheuer@toronto.ca