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On August 16, 2007, the MOE passed O.Reg. 453/07 under the Safe Drinking Water Act
which requires the preparation of financial plans for water (and wastewater) systems.
Generally,
- the financial plan is to be completed and submitted by July 1, 2010;
- the financial plan shall be for 6 years or longer;
- the financial plan is mandatory for water and “encouraged” for wastewater;
- reporting to the Province will be on an accrual basis consistent with PSAB
reporting requirements.
There are several steps that must be taken in preparing the financial plan. These include:
- analyzing the immediate capital needs for infrastructure replacements and growth related needs and how to finance them;
- looking at longer term needs – up to 80 years – and developing life cycle
replacement costs for the infrastructure and determining how much money needs
to be reserved for those replacement costs;
- assessing the costs of the water and sewer systems, including operating, inflation,
growth, capital and debt carrying charges.
Watson & Associates has both the knowledge of municipal finance and economics, and the
demonstrated experience in this particular area, to undertake the financial plan that will
meet, or exceed the Province’s requirements. Our firm is committed to carefully monitoring
developments in this field. We have already carried out similar assignments for more than
75 municipalities.
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