City of Port Coquitlam Capital Improvement Program May 1993

Revenue and Expenditure Projections

The projection of revenues and expenditures enables City Council to determine whether the proposed
CIP plan is affordable. Thus, the projection of revenues and expenditures adds an important element
to the CIP process.

In projecting future operating revenues and expenditures, many assumptions were made. Any attempt
at financial prognostication is, at best, fraught with uncertainty and conjecture; nevertheless, rational
projection methods are available which will produce materially accurate results. This is our first real
attempt at long-range financial projection and all data, models, and assumptions were compiled and
developed virtually from scratch, and will be subject to continual review and refinement for many
years to come. Of course, future turns of events will also dictate that constant reassessments be made.

There is a concern in the estimated operating cost of Hyde Creek in that there is projected a reduction
in the amount of property tax subsidy to the Hyde Creek Centre by some $175,000 per year as a result
of the increased attendance resulting from the renovation. I am somewhat hesitant to use this estimate,
although Parks and Recreation staff assure me that they feel this level of subsidy reduction is
reachable.