Municipal Services Corporation for Water and Wastewater Services

InnServices Utilities Inc. is an exciting new company created by the Town of Innisfil to deliver water and wastewater services to Innisfil and other municipalities. On June 17, 2015, Council adopted a Business Case for the creation of a Municipal Services Corporation (MSC) for water and wastewater servicing; “InnServices Utilities Inc.”, a water and wastewater utility. As part of the public process for considering the MSC, the Town gathered input from the community. Consultations were held and open to the general public at a Town Hall Open House, and also with the development community and business groups.

On January 1, 2016, the Town transferred the water and wastewater assets, including two water pollution control plants, one surface water treatment plant, municipal wells and the associated collection and distribution systems to InnServices. InnServices is also tasked with building over $200 million in new infrastructure which will generate growth, economic development, and bring local jobs to Innisfil.

Why does Innisfil need a Municipal Services Corporation?

• As a lower-tier municipality in the County, we are responsible to provide our own water and wastewater infrastructure. This is not the case for lower-tier municipalities in a regional system.
• The Town needs about $100 Million to build the infrastructure to service the Innisfil Heights Employment Lands. Unfortunately, provincial regulations limit the amount a municipality can borrow which, for the Town of Innisfil, is roughly $ 60 million. The MSC follows different provincial rules when it comes to the implications surrounding the debt capacity.
• By servicing and developing the employment lands along Hwy. 400, the projection is that 13,000 jobs could be created and the town’s property tax base would grow upwards in the amount of $1 million annually.
• Better financing tools will help to transform the Town from a bedroom community into a more vibrant and sustainable municipality with a healthier mix of commercial, industrial, agricultural and residential taxpayers.
• Our tax base is overwhelmingly (95%) residential and farms.
• To make a more sustainable tax base we should be moving toward a commercial/industrial tax base in the range of 25-40% which is possible when economic development happens in Innisfil Heights.

Has this model ever been tested?

• The model mirrors the approach that Ontario utilities use for gas and hydro services.
• Locally, InnPower uses this model to meet the electricity needs of Innisfil and a portion of South Barrie.

What does this Mean

• The creation of InnServices will allow the financing and capital investments necessary to service the Innisfil Heights Employment Lands, making Innisfil ready to attract business and industry and to provide local jobs.
• Water and wastewater rates will continue to be set by Council. Analysis of current rates has been completed and the creation of InnServices suggests that rates would not go up any more than they would normally. In fact, there is a chance they could be lower over time.
• Operations will continue to be managed and staffed locally.
• Creating InnServices is not privatizing, as Council would continue to be accountable and responsible for the oversight and rate increases. Council is the shareholder with ownership of InnServices.