Loyalist Township is committed to maintaining safe and reliable drinking water and wastewater systems, in compliance with Ontario regulation 453/07 and the Safe Drinking Water Act. A financial plan for both water and wastewater is completed every five years with this update being submitted to the Ministry of Environment, Conservations, and Parks by November 15^th for the Townships Drinking Water License renewal application. When analysing the rates it is important to consider the two distinct and separate services that are being considered:

1. Treatment and Supply of Drinking Water
2. Collection and Treatment of Sanitary Sewage.

In 2019, council initiated a 10-year transition of the water billing model from a 60:40 fixed/consumption ratio to a 40:60 model, aiming to promote water conservation by reducing the delivery charge and increasing the cost per unit of water used. This study completed by Hemson Consulting LTD focuses on existing users and infrastructure maintenance. This study does not consider system expansion costs, which are covered by new developments through impost fees and connection charges under the "Growth pays for Growth" principle. An update to the Impost Fee study is scheduled to occur in 2025.

• Hemson Consulting Ltd. has been obtained to establish an updated financial plan for the Township’s drinking water license renewal. This plan includes an updated study for water and sewer user rates.
• The results from the study indicate that a 5% average annual increase for water and sewer rates would meet capital and operating requirements, while accounting for the reserve fund policy.
• The 2025 water and sewer user rates by-law will be presented at the November 12th Council meeting.
• This study has been completed in accordance with the requirements for the preparation and approval of the Financial Plans Regulation, O. Reg 453/07 under the Safe Drinking Water Act,, 2002.