Tillsonburg water and wastewater rates not increasing

Jeff Helsdon, Local Journalism Initiative Reporter

It’s not often that good news comes out of municipal government budget discussions, but this is one tidbit - the water and wastewater rates for Tillsonburg residents won’t be increasing.

The average rate calculations, which were discussed in the county budget, are based on average consumption. The situation could vary slightly, dependent on use, and a calculator is available on Oxford County’s web site.

Water rates are a combination of consumption charges and charges to cover infrastructure maintenance and replacement to keep it in a state of good repair, which is basically all the infrastructure including wells, water storage, water treatment facilities, and distribution pipes.

Consumption charges will increase by 1.8 per cent for both water and wastewater, which is the Consumer Price Index, across the county. The amount for infrastructure updates varies by municipality, dependent on future needs mapped out in the asset management plan for infrastructure maintenance and replacement and the amount of reserves. This is where Tillsonburg shines.

“With the reserves in the position Tillsonburg is in, there is no need for an increase,” said Don Ford, senior manager of water and wastewater services for Oxford County. “What’s unique about Tillsonburg is the amount in the reserves.”

Tillsonburg has $6 million in the water reserves and $12 million in the wastewater reserves.

There is spending planned in the asset management plan for updates and maintenance items, but Ford said the targets are being met.

“Those targets are being met there is no need to increase the amount,” Ford said.

Looking at the numbers, the average Tillsonburg customer using 150 cubic meters of water per year, will see the water charge go from $506 to $541. However, this is offset by the wastewater charge, which will see a reduction from $477 to $442. This works out to a total of $983 for both 2025 and 2026 rates.

Ford explained in Tillsonburg’s case, there is not a draw on the reserves.

“It’s not a transfer out, it’s a recognition we don’t need as much, so it’s an offset,” he said.

Other communities are not in the same position. The county’s water systems are broken down into Woodstock, Tillsonburg, Ingersoll and the remainder of Oxford County. Woodstock rates will increase by 8.5 per cent for an average charge of $816. Ingersoll rates will decrease by 2.5 per cent for an average charge of $1,169. The smaller municipalities will see rates varying from a 1.5 per cent increase for an average bill of $1,186 for Norwich on the low side to a high of a 5.8 per cent increase in Drumbo for a total of $1,744.

“The county’s goal is to fully recover water and wastewater costs through the rates,” Ford said, explaining each community’s contribution is based on annual needs.

In Tillsonburg’s case, the amount of growth has helped.

“If there’s more consumption, more growth, and if there’s cost savings, any surplus all goes to the reserve and builds the reserve,” he said.

Ford further explained existing users don’t pay for the infrastructure for new developments.

“Growth pays for growth and existing customers are paying for the system to be maintained. Growth helps since once people are connected to the system, they are users,” he said.

Ford also said wise management by Oxford County and its water distribution service provider, the Town of Tillsonburg, have assisted in keeping costs down.

The future

Down the road, Tillsonburg will need an expansion of the wastewater treatment plant. Ford explained development charges will fund this initiative, and it’s in the 10-year capital plans.

On the water front, predictions are Tillsonburg has enough water until 2046. A study, which will launch this year, will look at how to supply the Town of Tillsonburg and the Township of Norwich beyond that planning window.

“Past that, we’ll have to consider if we drill more wells, interconnect communities or find other sources,” he said.