City water revenues fall

Author: Frank Matys

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Frank Matys

Officials say a decline in sewer and water revenues is related to the economy. John Hoos, superintendent of water treatment and supply, is pictured at the city’s water filtration plant.

Recession-conscious businesses appear to be tightening their taps as well as their belts as the city reports an unexpected loss in water revenues.
“In a flatter economy, there are people whose business is down so their (water) use is less,” said Peter Dance, director of public works.
Declining water consumption translated into a sizeable shortfall in the first four months of this year.
Revenues from water use were $116,000 less than anticipated.
Likewise, municipal income associated with sewer rates were $86,000 less than expected, staff noted in a recent budget update.
Commercial customers account for most of the decline, Dance said.
“It wouldn’t surprise me if, in the slow economy things are a little bit tighter,” he said. “In recessionary times, there is less going on.”
The majority of the revenue is derived from water and sewer rates charged to residential, commercial and industrial customers, with bulk water sales making up the remainder.
“They tend to be a bit lighter at the beginning of the year and pick up in September and October,” Dance said of the latter.

Dance said a slowdown in one business – a catering company, for example – impacts on related businesses that may use large volumes of water, such as the linen service that launders the tablecloths and napkins.
“It doesn’t take much decline in general activity,” he added. “If your orders are down, you are using less water.”
Dance speculated that residential and commercial customers alike are more conscious of their consumption due to uncertainty in the economy.
Trucks may be washed less, and hoses monitored to ensure against the needless wasting of water, he suggested.
“There are times when people say, ‘You know what? We won’t leave that tap running,’” he added.
High-volume users such as industry and some businesses have their water metres read six times annually.
Residential metres are read once, in spring, with bills issued four times a year.
Dance noted that, prior to Toronto’s recent city strike, officials there reported a decline in household trash – another indicator, he says, that overall consumption is down.
“People are buying fewer things, so there is less packaging, less garbage,” he added.
Local sewer rates are based on the cost of treating wastewater, Dance, said.