Chestermere Utilities Incorporated (CUI) - a municipally-owned company established in 2011 by the Town of Chestermere - posted a growth in their asset value on April 29.
The CUI increased its asset value by almost $5 million in 2013, while posting a net loss of about $26,000, reaching a break-even position four years ahead of initial forecasts.
“With a solid year behind us, CUI is poised for continuous growth,” said Dr. Catherine Connolly, CUI’s board chair. “Having strengthened our governance and consolidated its operations, CUI will continue to pursue opportunities to partner with like-minded communities interested in leveraging CUI’s investment in achieving its independent status, reaping the benefits provided by the corporation.”
According to the company, CUI will leverage its investments into opportunities that further establish the corporation as an independent utility service, so surrounding communities may benefit from CUI’s services and minimize the liabilities and risks associated with their own water and wastewater management.
“CUI was able to reach break-even status four years earlier than expected by finding and exploiting opportunities for cost savings in both its operations and capital projects, said Gord Lowe, a director on the board.
The investment to be leveraged is CUICs expertise and staff. CUI has developed the expertise to create and operate cost-effective utility services. Spreading the development, operating, and administrative costs over a larger client base will result in cost savings for all.”
CUI was created to provide the Town of Chestermere with flexibility by removing the debt and liability associated with building and maintaining water, wastewater and stormwater assets. The CUI provides residents of Chestermere with utility service costs as well as autonomy from the City of Calgary.
According to the CUI their model allows for “unconstrained growth due to the corporation’s ability to access competitive financing options, ensures more accurate costs for development and levies attached, and removes the burden and limitation of borrowing money from the Town.”
“Chestermere Utilities Incorporated really is a ‘win-win-win’ for the Town of Chestermere, its residents, and taxpayers,” said Chestermere Mayor Patricia Matthews. “Residents’ needs are well-served, taxpayers are not required to fund future infrastructure growth and development, and Town council may receive future dividends as the major Shareholder.” Matthews noted that while rates increased in 2013 due to cost increases from the City of Calgary, these were passed through to consumers without markup by the company.
The Town council of Chestermere took the step to manage its water and wastewater operations when it chose to separate utility operations from the Town of Chestermere. In doing so, CUI provides water, wastewater, and solid waste collection and recycling services to Chestermere residents.
The company generates revenues through consulting and project management fees, and can increase its value by consolidating costs across a broader customer base. CUI relies on the City of Calgary for water supply and wastewater return, as well as landfill facilities.
For more information on CUI, visit the website at www.cuinc.ca
