THE CORPORATION OF THE CITY OF PORT COQUITLAM

‘ - MEMO

‘
’

TOs Finance Committee . . , ‘ DATE: September 27, 1979

FROM: J. Maitland,
City Treasurer.

DIFFERENTIAL SEWER RATES

Background

Since the development of Mary Hill the City has had different sewer
rates depending upon whether the sewer mains were installed by a developer
or by the City. The basis for a different rate is that the users should
Shere equally’the maintenance and operating costs and that the City installed
user should bear the cost of debt repayment on the City installed mains.

Items considered when the rate differential was last sericusly looked
at (in 1972) were:

(1) Residents on developer installed ‘mains had paid for their mains.
when they purchased their homes. ‘

(2) We do not ‘have a similar rate differential on water rates even
. though "simtlar conditions exist. : -  , fe

(3) The market value of a piece of property will be the same regardless
of who installed the sewer. . ‘ ‘

(4) A similar benefit of having use of the sewer system is in place for
each class of property and perhaps the benefit should be the
principal criteria in setting the rates.

Current Situtation . $000, + atl

The. annual debt charges/applicable to City installed/users is $67,700
which if applied over the 3,550 users would result in a $1.59 monthly charge
to cover debt only. . In other words a rate differential of $1.59 cculd be
justified. The debt charges remain fairly constant through to 1989 and all
the debt is paid off by 1992.

month will bring

~

‘The earlier proposed rate differential of $2.00 per
in approximately $85,000. .

Common Rate = =~ ‘ ‘
In earlier years it was suggested that we aim for a common rate for

residential sewer users as we now have for water users.
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