Thank you, Madam Chair. Over the three years of the department's business plan, we have a total of $9.8 million indicated annually. The way we are implementing in this initiative is to phase it in. In the first year, we believe there are additional opportunities to save additional funds in the operation of the system, but we recognize that it will take some time to create the efficiencies that are possible in communities in the delivery of water and sewer services.
At the end of the three-year period of our business plan, we're estimating that communities will be operating services as efficiently as possible, if we are to contribute on the basis that we are now; if we are to maintain the subsidy levels now under the water and sewer. If we are to maintain the subsidy levels now for the next three years on a per community basis, and yet communities will still need to accommodate their growth in population within that fixed amount of money over the three-year period, we're estimating that communities will then need to be as efficient as they can be; maintaining rates approximately at what they are now.
We are, as a department, working with communities to help them become as efficient as possible. In terms of reducing the subsidy levels even further, that will be something that will impact directly on the question of affordability at the community level. We're addressing the initial phase of reductions. We're addressing our reductions to our budget for water and sewer subsidy by directly tackling opportunities to save through better efficiencies. To reduce the subsidy further than that, would affect affordability to consumers. Thank you, Madam Chair.