THE CORPORATION OF THE CITY OF PORT COQUITLAM

MEMO
B. Kirk, November 22, 199]
City Administrator
Finance Committee

1992 Utility budgets and rates

‘That Council approve the proposed utility budgets for 1992,

That Council approve the proposed rates for 1992 water and sewer as
handwritten on the attached rate schedules to the bylaws.

Background & Comments:

WATER UTILITY

A proposed budget for the Water Utility is attached and is based upon the continuation of
the same operation as in 1991. Also included on this schedule is an estimated 1993 budget
which is stated in 1992 dollars but reflects known or expected increases in costs such as
debt charges, GVWD rates and capital requirements as well as cost increases relating to
the growth in the amount of infrastructure to be maintained.

The GVWD’s Long Range Plan will have a substantial effect on our costs, in the plan
their cost of providing water will increase from $26 per household in 1991 to $46 per
household in 1997, stated in 1991 dollars. |

Operating and Maintenance

One significant variance occured in 1991 from what was originally budgeted, we
experienced increased water line maintenance costs as a result of water leaks and breaks

(see attached correspondence).

The other major changes in costs and other revenues are:

an increase of $54,000 in water purchases resulting from increased rates
charged by the GVWD as well as increased consumption due to growth.

a projected decline in interest revenue. This is because of two items, firstly
we have reduced our reserves by doing some capital work therefore we do
not have as much availabie for investment and secondly interest rates have
dropped substantially from 1990.