News Flash

City of Chestermere News

Posted on: September 4, 2018

City Council looking into alternative options for CUI

Chestermere City Council 2017 web

Today Chestermere’s City Council took action on the future of CUI.  After hearing overwhelming concerns from residents and having meetings with various representatives connected with CUI, including members of their Board, Council decided that the status quo is no longer desirable.

Council decided that a change in the governance and operations of CUI is required and passed two key resolutions regarding CUI’s future.

“Future operational considerations for CUI was included in our Strategic Plan,” says Mayor Marshall Chalmers. “It’s important for Council to look into the financial future to combat the significant utility rate increases in past years.”

The decision to review CUI would result in retaining KPMG (the City’s auditors) and McMillan LLP (the City’s legal counsel) to provide recommendations for options on restructuring CUI.

The range of restructuring options considered for this joint engagement included:

  • Municipalization: CUI being rolled back into the municipality,
  • Hybrid: CUI would retain its existing structure, however the management and operation of the utility would be integrated back in the municipality,
  • Changes to Financial Policy: Changes in CUI’s approach to financing new investment and,
  • Partnerships/Outsourcing: CUI could partner with other utilities or municipal agencies to enhance performance or improve efficiency.

Some of these options may not be mutually exclusive and could be combined.

The expected cost of this report is $65,000 and funding will come from the Council Priority Restricted Surplus Account. The alternate options report will be submitted at a Special Meeting of Council on October 22, 2018.

“I have full confidence in KPMG and McMillan LLP’s ability to provide the restructuring options necessary to satisfy Council’s desire to move in a different direction,” says Bernie Morton, Chief Administrative Officer of the City of Chestermere.

To become better informed on CUI operations, City Council has appointed all members of Council to the CUI Board effective immediately.

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