ANNUAL WATERWORKS INFORMATION

            TOWN OF WAKAW

WATERWORKS RATE POLICY

Under the waterworks rate policy resolution, the rate will continue to be established annually by bylaw each January. Sask Water supplies treated water to the Town at a rate of $ 9.10 per unit (1000 gallons). The rate increases annually by 3.9 %. Council sets the rate charged to our consumers based on the increases set by Sask Water as well as council recognizes the need to create adequate reserves for water and sewer for maintenance and replacement. The Town of Wakaw is fortunate to have a Sask Water Treatment Plant in our community. This in turn with our scheduled maintenance and replacement plans will ensure our waterworks will provide safe drinking water.

The current rate of $ 85.00 per quarter for 5,000 gallons and an overage charge of $ 11.00 per 1000 gallons were established by Bylaw on January 29, 2008. The Town also charges a flat rate of $ 50.00 per quarter for the operation of the sanitary sewer system.

Water Rates

Date                        Min Quarterly Charge (5,000 gal)   Overage per 1,000 gallons

January 1, 2008                 $   85.00                                   $ 11.00

January 1, 2009                        $   90.00                                   $ 11.50

January 1, 2010                 $   95.00                                          $ 12.00

January 1, 2011                 $ 100.00                                  $ 12.50

January 1, 2012                         $ 105.00                                  $ 13.00

The objective of the waterworks rate policy is to have the utilities be self sustaining. The council may consider further increases to the proposed rates in order to improve capital reserves to meet the future infrastructure maintenance and replacement costs.

Waterworks Capital Investment Strategy

The focus of this strategy will be to address the future needs of the community to facilitate a possible increase in the town’s population if the proposed canal project takes place. It also addressed some of the immediate areas of concern in both the waterworks and sanitary sewer system.

Capital Plans

Project                                Year of Completion   2008 Cost     Future Cost**    Source of Funding

Sewer Lift Station                       2008                $ 650,000                                MRIF/Gas Tax

                                                                                                                               Reserves/Borrowing

Water Reservoir                           2012                $ 750,000          $ 920,000      Grants/Reserves

                                                                                                                                 Canal Project Profit

Lagoon                                           2010         $ 600,000                 $ 700,000      Grants

                                                                                                                                 Canal Project Profit

** Assuming a 3% Inflation Rate

Financial Overview (of the previous year)

Utility expenditures (wages, etc) are combined with the sewer costs as reported in the 2007 Financial Statements

Total 2007 water/sewer works Revenue             $ 325,024

Total 2007 Expenditures                                         $314,229

Comparison of water works revenues to expenditures, expressed as a ratio =

$ 325,024

$ 314,229  = 1.0343

Any excess funds were transferred to general revenues in 2007.

Reserves

As of December 31, 2007   $ 100,000.00

Attachments

The 2005 Waterworks System Assessment, as required under Section 35 of the Water Regulations, 2002.

Approved by Council on April 15, 2008