FAQs
Why are the City and Utilities Kingston considering an MSC?
An MSC provides greater financial flexibility and allows us to access alternative financing and the ability to leverage borrowing capacity beyond municipal limits. Additionally, it opens up revenue opportunities through shared services and potential third-party contracts. This approach also supports focused governance through a dedicated board and management team specifically for water and wastewater services.
Municipalities across Ontario are moving toward this model of service delivery as a means to keep pace with the rising costs of delivering water and wastewater services and maintaining the infrastructure necessary to serve communities.
Is an MSC the same as privatizing public services?
No. The MSC does not mean these services are privatized. The MSC will be wholly owned by the City of Kingston and operate at arm’s length. It is not a private entity and it remains publicly accountable and subject to municipal oversight. Utilities Kingston currently operates under an MSC model and operations will follow a similar structure.
What are the impacts to Utilities Kingston ratepayers?
The City may delegate operational rate-setting processes to the MSC within an approved framework that safeguards affordability and public interest with the official rate by-law still being adopted by Council to ensure enforceability.
How will an MSC remain accountable to ratepayers and residents?
The City remains the sole shareholder in a water/wastewater MSC, ensuring public transparency and oversight. This MSC would operate water and wastewater services and report to Mayor and Council.
Will there be changes to development charges (DCs)?
At this point, it is anticipated that development charges will remain in place and will continue to fund growth-related infrastructure.
How does an MSC help Kingston meet the demands of projected population growth?
Kingston needs to invest in its water and wastewater infrastructure to meet the needs of a growing population and new housing, and the cost of the maintenance and development of new infrastructure places financial pressure on the municipality that can’t be funded with the revenue from rates. Infrastructure improvements go beyond accommodating population growth — these improvements also support our strategic goals of increasing our climate resilience and boosting economic growth.