11/13/2011 3:20:13 PM

November 10, 2011

Proposed Solid Waste and Water budgets fund waste management and infrastructure renewal programs

The 2012 proposed operating and capital budgets for Solid Waste Management Services and Toronto Water support the City’s commitment to fiscal responsibility and customer service while executing critical waste management plans and infrastructure renewal programs.

The proposed budgets, presented today at a meeting of the City’s Budget Committee, detail the City’s plans for continuing to deliver these two important programs. They outline the capital budgets as part of the ongoing rollout of the City’s 10-year capital plan to replace aging infrastructure and incorporate significant savings resulting from the contracting out of some waste management services.

"Solid Waste Management and Toronto Water are advancing key priorities with these budgets,” said Councillor Mike Del Grande (Ward 39 Scarborough-Agincourt), Chair of the Budget Committee. “Investments we are planning to make next year will have significant impacts in the near and long-term. The City is committed to delivering services in a cost-effective and accountable manner and ensuring that we repair aging infrastructure to carry us into the future.”

Solid Waste Management Services
The proposed 2012 Solid Waste Management Services budget consists of:
• Operating Budget of $349 million
• Capital Budget of $103 million (includes a carry forward of $43.6M)

The 2012 Solid Waste Operating and Capital Budget submission recommends a 0% rate increase in 2012 for the majority of its residential customers and also proposes a variety of adjustments designed to improve billing systems and create fair, harmonized rates across the entire customer base.

Key operational initiatives supported by the proposed 2012 Solid Waste Management Services budget are:
• Transition from public to private service of residential curbside collection in District 2 (west of Yonge Street to the Humber River).
• Achieve efficiencies in collections through route optimization.
• Introduce new materials to be recycled in the Blue Bin (e.g. Mixed Rigid Plastic Packaging).
• Restructure the waste rates by recommending that the Multi-Residential Curbside Bin Rate Structure be changed to mirror the Multi-Residential Front-End Rate Structure to encourage a more equitable distribution of waste rates.
• Continue program rollout of apartment Green Bin organics collection.
• Transition to additional private service delivery of litter vacuuming.
• Maintain adequate and reliable processing capacity for organics and single-stream recycling.

Toronto Water
The proposed 2012 Toronto Water budget includes:
• Operating Budget of $381 million
• Capital Budget of $607 million
• Projected revenue of $893 million

The 2012 Toronto Water Budget submission recommends a 9% water rate increase in 2012. This is a planned increase and part of a multi-year budget and infrastructure renewal program that was approved by the previous Council. The plan, first implemented in 2006, endorsed annual 9% rate increases for nine years to tackle Toronto's aging water infrastructure. The requested rate increase allows the City to protect public health, safety and property, in a fiscally and environmentally responsible manner.

The proposed new rate is an increase of $62 (17 cents per day) for the average Toronto household using 300 cubic metres of water per year. The annual projected cost in 2012 is $747 per year ($2.04 per day) for the average household. This rate includes costs for all water services including drinking water, wastewater and stormwater treatment. Toronto's water rates continue to remain lower than those of most neighbouring municipalities.

Key projects included in Toronto Water's 2012 budget:
• Increased infrastructure renewal funding that will reduce the backlog by a further $118 million (backlog forecasted to be $1.555 billion by end of 2012)
• Continued investment in basement flooding protection
• Completion of Infrastructure Stimulus Funding project
• Completion of major capital projects:
o Coxwell Sanitary Trunk Sewer By-pass
o Horgan Water Treatment Plant Expansion
o Avenue Road Trunk Watermain
o Ashbridges Bay Wastewater Treatment Plant (WWTP) Odour Control Facilities
• Waterfront Sanitary Servicing Master Plan Class Environmental Assessment (EA) which is a review of sanitary servicing for growth along the waterfront to 2031
• Initiation of new projects in 2012:
o Gerrard Street Trunk Watermain
o Ashbridges Bay Wastewater Treatment Plant Treatment and Odour Control (P Building)
o Highland Creek Wastewater Treatment Plant Major Biosolids Treatment Upgrade

Over the past several years, both Solid Waste Management Services and Toronto Water have achieved significant milestones while maintaining progress toward critical waste diversion and infrastructure renewal goals. These and key priorities for the 2012 budget are outlined in the backgrounders at the link below.

Executive Committee will consider these budgets on November 21 and Toronto City Council will consider the budgets for approval on November 29/30. Backgrounders, analyst notes and other materials are available at http://www.toronto.ca/budget2012.