AMO receives report Towards Full Cost Recovery: Best Practices in Cost Recovery for Municipal Water and Wastewater Services.Today, the Association of Municipalities of Ontario (AMO) is releasing to its members a report on cost recovery for water and wastewater services.
Over the past decade, the municipal sector has seen significant changes to the legislative and regulatory framework governing water and wastewater services. These changes have impacted municipal capital, operations and management considerations when delivering water and wastewater services. Many municipalities are implementing cost recovery systems for water and wastewater services and are in various stages of this exercise.
AMO retained Watson & Associates Economists Ltd. and Dillon Consulting Limited to undertake a survey of 16 Ontario municipalities of diverse size and geography that have made or are moving toward full cost recovery and life cycle asset management for water and wastewater services in an effort to help those municipalities that are in various stages of implementing full cost recovery.
The results of the surveys have been included in a report and guide to add to the resources and ongoing conversation on cost recovery for municipal water and wastewater infrastructure. Included in the report is background information on relevant legislation that impacts water and wastewater services, rate structures, capital financing tools and engineering practices to assist councils and staff in understanding the technical concepts and best practices in cost recovery that are before municipalities.
The final report outlines several key observations including: