Belleville Wastewater Financial Plan 2025-2034

Although a Wastewater Financial Plan was not developed alongside the Water Financial Plan in 2020, as the Province does not mandate it, City staff have now completed the first iteration. Along with the Water Financial Plan, the new wastewater plan aligns with the Wastewater Rate Model, the 2024 Asset Management Plan, and the Council-approved 10-Year Capital Plan. It serves as a valuable tool to illustrate the financial position of the City’s wastewater systems and will help support future decisions related to wastewater rate recommendations.

• Annual surpluses are projected throughout the forecast period, with the accumulated surplus increasing to $160.0 million by 2034.
• Planned capital investments total $305.8 million, including major rehabilitation projects such as wastewater treatment plant and pumping station upgrades, as well as the ongoing pipe relining program. Growth-related projects include expansions at the wastewater treatment plant and the Avonlough Pumping Station.
• Cash and cash equivalents are projected to rise over the forecast period, aligning with the City’s long-term capital strategy.
• The Sanitary Sewer Reserve Fund is currently underfunded, with a 2024 year-end balance of $8.8 million compared to the reserve fund target of $33.5 million. As a result, $101 million in new debt is projected, in addition to $43.7 million in previously approved but unissued debt. These amounts remain within the City’s debt policy, which caps debt servicing at 12% of own-source revenue.
• As previously noted, interfund borrowing from the Water Reserve Fund is anticipated to temporarily support capital needs.
• Beginning in 2026, the wastewater system is expected to shift into a net financial debt position, where liabilities exceed financial assets, driven by the need to address the infrastructure deficit identified in the 2024 Asset Management Plan.
• Staff will continue to monitor and manage financial requirements for the wastewater system and will bring forward recommendations to Council to ensure ongoing financial sustainability.

The plans incorporate several assumptions:

• Residential water consumption is expected to grow by 0.5% annually, while nonresidential (general service) consumption is projected to grow by 1.0% per year.
• The number of residential customers is anticipated to increase by 1.5% annually, and general service customers by 0.3%.
• Revenue projections reflect average annual rate increases as outlined in the Water and Wastewater Rate Models presented to Council in November 2024. These include a modest 1.47% annual increase in water rates and a more significant 8.8% annual increase in the wastewater surcharge. It is important to note that these increases are subject to change based on new data and are reviewed and recommended to Council annually.
• Operating expenses are forecasted to rise by 5% per year for water and 3% for wastewater services.
• Capital infrastructure needs are based on the City’s 2024 Council-approved 10-Year Capital Plan, which was informed by the 2024 Asset Management Plan.
• Anticipated grant funding for capital projects has been included where applicable, in alignment with the 10-Year Capital Plan.

REC. NO. 170-2025

Moved by Councillor Kathryn Brown
Seconded by Councillor Barbara Enright-Miller

That Council approve the City of Belleville 2025-2034 Water and Wastewater Financial Plans, and authorize staff to submit the Water Financial Plan to the required provincial Ministries.

Carried

April 28, 2025