PROPOSED INFRASTRUCTURE RENEWAL FEE
Build Financial Capacity is a Municipality of Greenstone Council Strategic Priority because wise investment in infrastructure is the backbone of strong governance.
Council has outlined the following goal: To create the financial capacity to invest in capital infrastructure and equipment to meet service level expectations and statutory requirements, and to allow flexibility to enhance existing and future service delivery options.
Furthermore, Council established an objective to set water and wastewater rates to create independence from the tax levy supported operating budget and build sufficient reserves to meet the 10-year full capital requirements. As well, Council wishes to communicate the budget challenges and strategies through a variety of formats to assist residents in understanding the budget strategies.
INFRASTRUCTURE RENEWAL FEE background
The Municipality of Greenstone’s Water and Wastewater infrastructure are critical assets to operate and keep in a state of good repair to ensure stability of safe reliable water and wastewater service delivery to residents.
Every year Municipal Council and staff discuss the opportunity to generate additional revenue that could be dedicated to the long-term repair and replacement of water and wastewater infrastructure.
When infrastructure for water and wastewater is installed, they are designed to:
- accommodate all potential future homes that may at some point be built on properties along the length of the systems, and
- allow all homes along the length of the system to easily connect to the water and wastewater systems as they are built.
Every property that can connect to water and wastewater services is treated equally when the systems are being designed and built. All buildable lots that may connect to the systems are considered as part of the initial installation of the systems because the systems cannot be customized as each lot is built.
Currently, lots that are not connected to water and/or wastewater systems but have access to the services do not pay for the repair, maintenance or replacement of the infrastructure, including allocation from the water and sewer plants although allocation is being maintained for these lots.
DRAFT Infrastructure Renewal Fee For Unconnected Lots Policy
FREQUENTLY ASKED QUESTIONS
| What is being proposed and who is impacted? |
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The Municipality is proposing an Infrastructure Renewal Fee that will generate new revenue by requiring owners of lots who have access to full or partial services for water and wastewater but are not connected to the systems, to contribute to the capital replacement of the infrastructure through regular billing. The Infrastructure Renewal Fee ensures that every lot that the water and wastewater systems were built to potentially service, equally contribute to the capital replacement of the systems. The Municipality recognizes that properties that are not connected to water and wastewater but are fronting these services are able to connect to services at any time, and therefore, have a responsibility to pay for the maintenance and replacement of the systems. The Infrastructure Renewal Fee will be charged to all properties that meet the following criteria:
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| What legislative ability does the Municipality have to impose an Infrastructure Renewal Fee? |
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An Infrastructure Renewal Fee is permitted under the Ontario Municipal Act, 2001, S.O. 2001, c.25, which allows a municipality to pass a By-law to impose fees or charges on persons, a) for services or activities provided or done by or on behalf of it; b) for costs payable by it for services or activities provided or done by or on behalf of any municipality or local board; and c) for the use of its property including property under its control. |
| How will the Infrastructure Renewal Fee be calculated? |
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The proposed Infrastructure Renewal Fee is determined by using the annual costs needed applied for infrastructure replacement. It includes:
Included in the 2025 budget is $1,367,600 in capital projects funded through user rates. Please note that fees resulting from water or wastewater usage are not included in the Infrastructure Renewal Fee because vacant lots are not current users. |
| What is the charge, how is it billed and when would it come into effect? |
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The Infrastructure Renewal Fee will be established annually through the Municipality’s Fees and Charges By-Law. If approved by Council, the proposed 2025 charge for a lot would be:
Subject to Council approval, for 2025, customers will only be responsible for the fee from the month Council approved the program (expected July 1, 2025) until the end of the year. |
| Do lots that are already connected pay this fee? |
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Lots that are connected to water and/or wastewater infrastructure already pay the equivalent fees that are proposed for lots that are not connected but have access to water and wastewater services. The proposed Infrastructure Renewal Fee is for lots that are not currently connected so that they equally contribute to water and wastewater infrastructure. |
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Why do my property taxes not pay for the water and wastewater infrastructure? |
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The Municipal property tax levy currently funds approximately $600,000 of the overall cost. Council has determined through its Strategic Plan that the water and wastewater systems should be independent of the tax rate. This new fee will help to bridge the gap and continue to reduce the reliance on tax rates to offset deficits. Property taxes are used to pay for the delivery of Municipal services that supports roads, garbage pickup, parks, police, recreation and fire services. Water and wastewater expenses should be paid separately because not every taxpayer in the municipality has access to water and wastewater services for their property. For example, residents in the rural parts of the municipality must maintain their own wells and septic beds because there is no Municipal water or wastewater service available to them. |
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How will the Infrastructure Renewal fees be used by the Municipality? |
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All fees collected for the infrastructure replacement of the water and wastewater systems will be used to finance in-year capital projects or will be placed in the Municipal reserves dedicated for water and wastewater. The reserve funds are reported on annually to Council. Through the annual capital budget plans, funds from the reserves will be directed towards projects that specifically address repair and replacement of existing water and wastewater infrastructure. |
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What is the cost to connect to the water and/or wastewater system? |
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The Municipality approves fees and charges on an annual basis as part of the budget process. Should you wish to connect a water and/or wastewater service to your lot, an application form must be completed along with payment of $346.29 (2024 fee). As part of the application process, the owner must agree to pay all costs incurred for the installation of services. |
| What if I don’t have a water or wastewater connection on the system available to me? |
| Although a water or wastewater service runs by your property, there may not be a connection on the line (curb stop) readily available for you to connect. If this is the case, you may be eligible for a 50% discount. A request to Public Services will need to be made to confirm eligibility. |
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