On Tuesday, Council will learn more about The City’s financial state as they receive an updated financial profile and debate the 2025 Utilities Budget.
The utilities budget includes the proposed 2025 operating and capital budgets for the City-owned/self-funded utilities, which includes electric utility, water utility, and waste management utility.
“Our primary focus in this utilities budget is ensuring the long-term sustainability of our services while maximizing the value of the community’s assets,” said Sarah Tittemore, Community Services General Manager. “This involves a thoughtful balance of investing in infrastructure and maintaining the necessary operational supports. The proposed budget achieves this balance, providing customers with stable and predictable rates.”
Administration is recommending rate increases in all three utilities; the anticipated total monthly increase for the average residential customer will be approximately $10.37*. Proposed rate increases are:
- Electric Utility: 6.5%
- Water Utility: 6%
- Waste Management Utility
- Waste Management Landfill: 2%
- Waste Management Collections Rate: 5%
If Council approves the utilities budget as presented, the potential revenue the utility will contribute back to The City is just under $35 million*.
This year’s budget process underwent significant changes, with one of the most notable being the decision to separate the debates for the operating, capital, and utilities budgets. This shift was driven by the need for a clearer understanding of how these budgets are interrelated and to ensure that both Council and administration have the time needed to thoroughly examine each one.
“Presenting a stand-alone utilities budget is an important step forward in our budget process,” said Mike Olesen, Growth and Finance General Manager. “It will allow us to have more meaningful conversations with Council and ensure we are making informed decisions that benefit the community both in the short and long term.”
As Council considers the utilities budget, they will be factoring in The City’s overall financial position and outlook. At this point, the anticipated tax supported operating budget will be in a deficit position in excess of $17 million. This takes into consideration estimated savings from the possible service level changes Council identified previously, the minimum budget increases required in 2025 and other planned increases in revenue. This does not include or address any changes to property tax revenue at this time. Further, the funding of our capital infrastructure program is forecasted to be in a deficit position within five years.
“The City's current and forecasted financial position are concerning and we need to consider our financial health more critically,” said Olesen. “Indicators demonstrate that, without change, our path remains unsustainable. The utilities budget is the first of three budgets Council review before the end of the year, and this will very much be the theme of each budget.”
*These numbers do not include any proposed changes to the Municipal Consent and Access Fee (MCAF); increasing this fee to 15% will be debated by Council on October 1.