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1995 Utility rates and budgets November 4, 1994

b) establish a DCC to recover growth costs from new development

Easy to do, the main disadvantage is that passage of a DCC bylaw may take a considerable
length of time as approval is required from Municipal Affairs.

to roll the growth costs into our levy and recover from existing taxpayers

This is the method used in prior years although it was done without the knowledge of what
the costs of growth were, It’s only advantage is that it is easy. It’s disadvantage is that
existing taxpayers are paying for costs which are attributable to growth.

If we were to go this route our sewer rates would need to be $189.00 (net of discount) instead
of the $170.64 proposed.

The method by which we recover this growth cost is a major factor in the setting of our
rates and must be established prior to the setting of our rates.

The Engineer is bringing forward a recommendation through the Public Works Committee
recommending that we establish fees for connecting to the systern to recoup these costs. The
budget has been developed on the basis that this will be in place.

Expenditures

The GVS&DD capital plan is again the main driver in increased costs, our GVS&DD levy has
increased from $641,000 in 1990 to $2,078,000 in 1995. The major cost item is the cost of
Secondary Treatment projects now underway totaling $206.5 million which is being shared under
the Canada/British Columbia Infrastructure Works Program. Original Provisional deadlines for
completion of secondary facilities was the end of 1997 for Annacis Island, the project is now
proceeding with a late 1998 completion. Delays were caused as a result of the

intergovernmental funding problems.

The other major cost increase is to build into our operating budget, the cost of main replacements
resulting from the annual video inspections.

Capital expenditures in the amount of $736,000 are proposed as detailed in the attacned schedule.
The City Engineer has projected our future capital requirements and funds are provided in the
budget to meet same.

Bille
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