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4. FIRE SUPPLY CHARGE - 2006 RATES
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That Council approve the 2006 Fire Supply Charge rates as presented in this report and that the attached by-law be enacted.
Que le
Conseil approuve les taux de la redevance eau-incendie de 2006, tels qu’ils
sont présentés dans le présent rapport, et que le règlement ci-jointe soit
adopté.
1.
Chief
Corporate Services Officer’s report dated 04 April 2006
(ACS2006-CRS-FIN-0014).
2.
Extract
of Draft Minute, 18 April 2006.
Report
to/Rapport au :
Corporate Services and Economic Development Committee
Comité des services organisationnels
et du développement économique
and Council / et au Conseil
4 April
2006 / le 4 avril 2006
Submitted by/Soumis par: Greg Geddes, Chief Corporate Services
Officer/Chef des Services généraux
Contact
Person/Personne ressource : Marian Simulik, A/City Treasurer/
Trésorière municipale par intérim
Financial Services/Services financiers
(613) 580-2424 x 14159,
Marian.Simulilk@ottawa.ca
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SUBJECT: |
FIRE
SUPPLY CHARGE - 2006 RATES |
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OBJET: |
REPORT RECOMMENDATION
That the Corporate Services and Economic Decvelopment Committee
recommend Council approve the 2006 Fire Supply Charge rates as presented in
this report and that the attached by-law be enacted.
RECOMMANDATION DU RAPPORT
Que le Comité des services
organisationnels et du développement économique recommande au Conseil
d’approuver les taux de la redevance eau-incendie de 2006, tels qu’ils sont
présentés dans le présent rapport, et que le règlement ci-jointe soit adopté.
BACKGROUND
As part of establishing the 2006 Budget, Council approved the transfer of the Fire Supply Charge from the tax bill to the water / sewer bill starting in 2006. The Fire Supply Charge is used to recover the investments the City has made to upsize the transmission system, distribution system, reservoirs, pumping stations, fire hydrants and sprinkler connections to the distribution system in order to ensure that in the event of a fire there will be adequate water flow. The revenue is used to finance a portion of the overall water system.
Also during the 2006 budget meeting, Council passed Motion 47/7:
Seconded by Councillor P. Feltmate
That the report on the “Collection of the Fire Supply Charge from the
Water Bill – Allocations Method” be brought to the first meeting of Corporate
Services and Economic Development Committee for deliberation in January 2006.
In accordance with this motion, on January 17, 2006, staff presented the report entitled "Fire Supply Charge - Allocation Methodology" to the Corporate Services & Economic Development Committee which examined the pros and cons of three possible options for generating the required Fire Supply Charge revenues. The Committee concurred with the staff recommendation that the Fire Supply Charge be moved to the water utility bill and that the revenue be raised through rates based on the size of the water meter. The report was subsequently approved by Council on January 25th.
The amount of revenue to be
collected in 2006 for Fire Supply purposes is $7.803 million which reflects the
decisions made during the budget deliberation meetings. There are 10 meter sizes identified in the
water billing system with the largest meter having a flow 277 times larger than
that of a single family home. Based on
the number of meters for each of the 10 sizes and the amount of revenue that is
required to be generated in 2006, the following rates would apply:
|
Water Meter Size (mm) |
Annual Fire Supply Charge |
Per day Fire Supply Charge |
Prorated Charge from May 1 |
|
|
|
|
|
|
15 |
$31.71 |
$0.09 |
$0.13 |
|
20 |
$56.38 |
$0.15 |
$0.23 |
|
25 |
$88.09 |
$0.24 |
$0.36 |
|
40 |
$225.51 |
$0.62 |
$0.92 |
|
50 |
$352.36 |
$0.97 |
$1.44 |
|
75 |
$792.81 |
$2.17 |
$3.24 |
|
100 |
$1,409.44 |
$3.86 |
$5.75 |
|
150 |
$3,171.24 |
$8.69 |
$12.94 |
|
200 |
$5,637.77 |
$15.45 |
$23.01 |
|
250 |
$8,809.01 |
$24.13 |
$35.96 |
Invoicing of the Fire Supply
Charge will be done through the City’s water billing system and will be
reflected on the water / sewer utility bill.
The majority of residential accounts receive 6 utility bills during the
year with commercial accounts receiving a monthly bill. Rather than being charged as an annual
amount on one bill during the year, the annual rate will be converted into a
daily rate with the amount being billed based on the number of days in the
billing period. With the enactment of
the by-law scheduled for May 1 , 2006, the annual charge will need to be
prorated over the remaining 240 days in the year in order to generate the
required Fire Supply Charge revenues.
CONSULTATION
As part of the Council tabling of the 2006 Draft Budget on November 9th, staff presented the option of collecting the Fire Supply Charge from the water bill within the document entitled "2006 Draft Budget Summary". From November 9 to December 2, members of the general public were provided with the opportunity to provide comments to their City Councillor by attending various ward consultation sessions or by providing comments by either e-mail or voice mail. In addition, members of the general public were also able to make a presentation at the Committee of the Whole budget meetings between December 5 to 7.
In accordance with Ontario
Regulation 244/02 - Fees and Charges, before passing a by-law imposing a fee or
charge, the City must hold at least one public meeting to allow the opportunity
for public input and ensure that a minimum of 21 days notice is provided in
advance of the meeting. Notice of the
April 18th Corporate Services and Economic Development Committee
meeting dealing the proposed Fire Supply Charge rates was placed in The
Ottawa Citizen and Le Droit newspapers on Wednesday, March 29, 2006.
FINANCIAL IMPLICATIONS
Approval of the rates as presented in the report will generate the required revenues as approved by Council during the 2006 budget meetings.
Annex 1 – By-law
DISPOSITION
Upon approval by Council, the Finance Department will implement the rates effective May 1, 2006, and the attached by-law will be enacted. Information on the new rates will be included in the subsequent Water / Sewer utility bills.
ANNEX 1
BY-LAW NO. 2006-
A by-law of the City of Ottawa to amend By-law No. 2003-500 respecting the fire supply charge.
The Council of the City of Ottawa enacts as follows:
1. The definition “fire supply charge” in Section 1 of By-law No. 2003-500 entitled “A by-law of the City of Ottawa respecting the municipal water supply”, as amended, is amended by striking out the expression “or levy on land” where it occurs therein.
2. The definition “General Manager” and “General Manager of Corporate Services” in Section 1 of the said By-law No. 2003-500 are repealed and the following definitions are substituted therefor:
“Deputy City Manager” means the Deputy City Manager of Public Works and Services of the City or an authorized representative of the Deputy City Manager unless otherwise specified;
“Chief Corporate Services Officer” means the Chief Corporate Services Officer of the Corporate Services Department of the City or authorized designates;
3. The said By-law No. 2003-500 is amended by,
(a) striking out the expression “General Manager” wherever it occurs therein and substituting the expression “Deputy City Manager” therefor, and
(b) striking out the expression “General Manager of Corporate Services” wherever it occurs therein and substituting the expression “Chief Corporate Services Officer” therefor.
4. The heading immediately preceding Section 82 of the said By-law 2003-500 is repealed and the heading “WATER SERVICE RATES AND FIRE SUPPLY CHARGE” is substituted therefor.
5. Subsection (2) of Section 82 of the said By-law is repealed and the following subsection is substituted therefor:
82 (2) All property in the City receiving
water from the City’s water distribution system shall be subject to fire supply
charges which are based on the size of the meter as set forth in Schedule
"C".
6. Section 85 of the said By-law No. 2003-500 is repealed.
7. Subsection (1) of Section 90 of the said By-law No. 2003-500 is amended by adding the expression “, fire supply charges” after the expression “water rates” where it occurs therein.
8. Item 1 of Schedule “C”, Water Rates” of the said By-law No. 2003-500 is repealed and the following Item is substituted therefor:
1. Fire Supply
|
Water
Meter Size (mm) |
2006
Annual Fire Supply Charge |
Per
Diem Fire Supply Charge from May 1 |
|
|
|
|
|
15 |
$31.71 |
$0.13 |
|
20 |
$56.38 |
$0.23 |
|
25 |
$88.09 |
$0.36 |
|
40 |
$225.51 |
$0.92 |
|
50 |
$352.36 |
$1.44 |
|
75 |
$792.81 |
$3.24 |
|
100 |
$1,409.44 |
$5.75 |
|
150 |
$3,171.24 |
$12.94 |
|
200 |
$5,637.77 |
$23.01 |
|
250 |
$8,809.01 |
$35.96 |
ENACTED AND PASSED this day of , 2006.
CITY CLERK MAYOR
FIRE SUPPLY CHARGE - 2006 RATES
REDEVANCE
EAU-INCENDIE – TAUX DE 2006
ACS2006-CRS-FIN-0014
Councillor Cullen referenced the
chart on page 34 of the Agenda and asked which Water Meter Size would apply to
the average homeowner. Marian Simulik,
Acting City Treasurer, advised the first line represented the cost to the
average homeowner.
That the Corporate Services and Economic Decvelopment Committee recommend Council approve the 2006 Fire Supply Charge rates as presented in this report and that the necessary by-law be enacted.
CARRIED