THE CORPORATION OF THE
CiTY OF PORT COQUITLAM

TO J. Maitland : September 19, 1991
City Treasurer

FROM: LR. Zahynacz, P. Eng.
City Engineer

SUBJECT; Watermain Breaks Account

Further to your attached memo, dated September 5, 1991, I am enclosing the first rough draft of
the 1992 Provisional Budget for the Water Utility.

In answer to your three questions, I note the following:

1. It’s anticipated that by the end of 1991 the Water Maintenance sub-accounts would
be fully utilized (including the additional $90,000 for the general

maintenance-watermain breaks.

At this point we are assuming the worst case and projecting that we would spend
the additional $90,000 in 1992 plus a growth and inflation factor for a total 1992
request of $343 775 under the general maintenance sub-account of the water utility

fund.

3. { agree that $250,000 is about as low as we would like to go for the water

operations reserve account.

As the water utility infrastructure ages, it can be expected that in the future that watermain
breaks and watermain replacement will increase. I would therefore recommend that the user fee
be increased rather than taking money from the reserve accounts for watermain breaks starting in

the 1992 budget year.

, ~~

/’ ) o pheye ~
ik. Zahynasé,Pe fing. 7
City

IRZ:gc
Attachment

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