WATER & SEWER RATES: NORWOOD

SYSTEM
2022 FINAL BUDGET PRESENTATION
DECEMBER 14, 2021
NORWOOD WATER SYSTEM
OVERVIEW OF WATER SYSTEM
• DRINKING WATER SYSTEM CONSISTS OF FOUR WELLS,
ONE WELL HOUSE/TREATMENT FACILITY, A
DISINFECTION SYSTEM, A CHEMICAL FEED SYSTEM FOR
CORROSION CONTROL, STANDBY POWER, ONE
STANDPIPE AND DISTRIBUTION PIPING THAT SUPPLIES
WATER TO THE VILLAGE
• THE GROUNDWATER COMMUNAL WELL WATER SUPPLY
HAS A TOTAL DESIGN CAPACITY OF 1,965 M3 PER DAY.
• OUR CURRENT DEMAND ON THE SYSTEM IS
APPROXIMATELY 640 M3 PER DAY.
 WATER METERS
• USERS HAVE BEEN BILLED BASED ON THE
BILLING MODEL OF 75% FIXED AND 25%
VARIABLE (M3). THIS MODEL IS BEING PROPOSED
FOR 2022.
• THERE ARE CURRENTLY 1,000 WATER METERS
INSTALLED IN THE VILLAGE (APPROXIMATELY) AN
INCREASE OF 100 METERS
 UNFUNDED CAPITAL
UNFUNDED CAPITAL PROJECTS ARE PROJECTS THAT
HAVE BEEN PAID FOR BUT THE COST OF THEM HAS
NOT YET COME OUT OF THE TOWNSHIP’S
ACCUMULATED SURPLUS, THUS LEAVING THEM
UNFUNDED. THE 2022 BUDGET INCLUDES $50,002.81
IN UNFUNDED CAPITAL AS PER THE FINANCING PLAN
ENDORSED BY COUNCIL ON JANUARY 12, 2016. THE
FINANCING PLAN ALLOWS FOR $50,002.81 TO BE
INCLUDED IN THE NORWOOD WATER BUDGET FOR 20
YEARS TO CLEAR THE UNFUNDED CAPITAL AMOUNT.
THE TOTAL AMOUNT THAT NEEDS TO BE FUNDED BY
THIS PLAN IS $1,000,056.09. AFTER 2022’S
CONTRIBUTION THE REMAINING BALANCE OF
UNFUNDED WILL BE $650,036.39
 UNFUNDED CAPITAL CON’T

THE UNFUNDED CAPITAL PROJECTS ARE AS FOLLOWS:

1. RIDGE ST. WATER WORK 2007(FUNDED) $ 96,453.00

2. KING ST. WATER WORK 2009 (FUNDED) $193,989.00
3. WATER METERS & UPGRADES 2012 $166,407.18
4. CORROSION CONTROL 2011 $ 76,358.06
5. HWY 7 WATER MAIN 2008 $466,849.90
 2022 BUDGET: NORWOOD WATER
2021 2022 Difference
Revenue (469,126.79) (503,789.95) (34,663.16)
Operating 217,386.21 229,787.14 12,400.93
Expenditures
Capital (Net) 251,740.58 274,002.81 22,262.23
Net Cost for 0.00 0.00 0.00
System

The proposed 2022 budget has a net balance of zero, this is due to
the revenues balancing the cost of operating expenditures and
capital. Thus allowing for a zero impact on the tax base.
 AREAS OF SIGNIFICANT IMPACT

• AQUIFER CAPACITY STUDY

• REPLACEMENT OF WATERMAIN ON RIDGE ST. FROM PINE
ST. TO END
• REPLACEMENT OF WATERMAIN BETWEEN THE
BUSINESSES THAT FRONT CTY. RD. 45 AND VICTORIA ST.
(IN THE PARKING LOT)
• REPLACE SERVICES ON MARGARET ST.
• UNFUNDED CAPITAL
• INCREASE IN USERS
 CAPITAL: NORWOOD WATER
Capital Expenditure Amount
Aquifer Capacity Study (DC’s) $76,823.19
Watermain replacement behind $186,500.00
business on County Road 45
Watermain replacement on Ridge St. $43,000.00
from Pine St. to end (5)
Replace water services on Margaret $51,000.00
St. (to property line) & new hydrant
Capital Equipment $29,500.00
Unfunded Capital Projects $50,002.81
Water Tower Design $100,000.00
Efficiency Funding ($4,500.00)
Transfer from reserves ($221,823.19)
Transfer to reserves (Hook up fees) $37,500.00
ICIP Funding (Green Stream – Tower) ($74,000.00)
Net Capital Cost $274,002.81
 RATES: NORWOOD WATER
Proposed 2022 Rate Structure
2021 2022 Difference
Variable Rate: per $0.71 $0.70 -$.01
m3 (25% of
required revenue)
Monthly Fixed $27.49 $27.02 -$0.47
Rate: (75% of
required revenue)
 RESERVES: NORWOOD WATER

PROJECTED BALANCE DEC. 31, 2021 $ 600,000.00

SUGGESTED 2022 NET TRANSFERS $ 184,323.19
PROJECTED BALANCE DEC. 31, 2022 $ 415,676.81
 2022 AVERAGE MONTHLY
DIFFERENCE: NORWOOD WATER
User Average Average Monthly Average Monthly Average Increase in
Monthly Charge 2021 Charge 2022 Billing
Consumption (Monthly)
m3
Commercial 100 m3 $98.49 $96.56 -$1.93

Family 20 m3 $41.69 $40.93 -$0.76

Couple 10 m3 $34.59 $33.98 -$0.61

Senior 5 m3 $31.04 $30.50 -$0.54

The average consumption for the majority of users

is 10m-20m3 a month
QUESTIONS
NORWOOD SEWER SYSTEM
 OVERVIEW OF SEWER
SYSTEM
• SYSTEM IS COMPRISED OF APPROXIMATELY 945
USERS
• BILLING MODEL OF 25% VARIABLE AND 75% FIXED
HAS BEEN CONTINUED FOR THE 2022 BUDGET
YEAR.
 2022 BUDGET: NORWOOD
SEWER
2021 2022 Difference
Revenue (512,762.15) (524,871.45) (12,109.30)
Operating 335,121.12 331,885.51 3,235.61
Expenditures
Capital (Net) 177,640.94 192,985.94 15,345.00
Net Cost for 0.00 0.00 0.00
System
The proposed 2022 budget has a net balance of zero,
this is due to the revenues balancing the cost of
operating expenditures and capital. Thus allowing for a
zero impact on the tax base.
 AREAS OF SIGNIFICANT
IMPACT
• HOLDBACK FOR REPLACEMENT OF SANITARY MAIN FROM COUNTY
RD 40 TO MARY ANN LANE – COMPLETED IN 2021
• COMPLETION OF OFF SITE SANITARY MAIN PROJECT – FUNDED
THROUGH DEVELOPMENT
• INCREASE IN USERS
• ELECTRIC CHAIN HOIST
• ALUM PANEL & NEW AFFLUENT PUMP
• INCREASE IN ADMINISTRATION HOURS
• DEBENTURE
CAPITAL: NORWOOD SEWER
Capital Expenditure/Grant Amount
Borrowing Costs $65,098.08
Loan Repayment $57,142.86
Capital Equipment $52,745.00
Capital Projects $218,000.00

Reserves (Development ($200,000.00)

Charges)
Net Capital Cost $192,985.94
DEBENTURE: NORWOOD SEWER

Matures: June 15, 2045

Balance Dec. 31, 2022 $1,285,714.25

Bi-Annual payments of $28,571.43 + interest

are due throughout the term of the debenture.
 RESERVES: NORWOOD SEWER

PROJECTED DEC. 31, 2021 $ 425,000.00

SUGGESTED 2022 TRANSFERS $ (0.00)
PROJECTED DEC. 31, 2021 $ 425,000.00
 RATES: NORWOOD SEWER

2021 2022 Difference

Variable Rate: per $0.95 $0.89 -$.06
m3 (25% of
required revenue)
Fixed Monthly $34.75 $34.63 -$0.12
Rate: (75% of
required revenue)
 2022 AVERAGE MONTHLY
DIFFERENCE: NORWOOD SEWER
User Average Average Average Monthly Average Increase
Monthly Monthly Charge 2022 in Billing
Consumption Charge 2021 (Monthly)
m3

Commercial 100 m3 $129.75 $123.67 -$6.08

Family 20 m3 $53.75 $52.44 -$1.31

Couple 10 m3 $44.25 $43.53 -$0.72

Senior 5 m3 $39.50 $39.08 -$0.42

 2022 IMPACT OF BOTH SYSTEMS

User Average Monthly Average Impact on

Consumption m3 Monthly Billing

Commercial 100 m3 -$8.01

Family 20 m3 -$2.07

Couple 10 m3 -$1.33

Senior 5 m3 -$0.96
QUESTIONS