“
zy ef
neo! ‘

es and

Water Expenditures:

The main increase in operating costs is in the cost of water purchased from the GVWD which has
increased from $756,000 in 1994 to $951,000 in 1995. The reasons for this are primarily the
GVWD capital plan as well as the projected increase in volume resulting from growth in the
City. The major GVWD cost increase for 1995 is a result of works already underway, primarily
the upgrading of Seymour Falls Dam and the Drinking Water Quality Improvement Program,

Capital expenditures are estimated at $1,025,550 as outlined in the attached schedule. The City

Engineer has projected our future capital requirements and funds are provided in the budget to
meet same.

Sewer Utility

Attached is the provisional budget for the Sewer Utility for 1995.
Rate increase:

The proposed rate increase for 1995 is $14.04 per year per residential unit (assuming the prompt
payment discount is taken). This is an increase of 9.0% from our 1994 rates.

The rate charged covers both the cost of services provided by the City as well as services of the
Greater Vancouver Sewer and Drainage District (GVS&DD). A breakdown of our flat rate is as.

follows:
Increase

1994 1995 $ %

For City services $ 65.67 $ 67.15 $ 1.48 2,3
For GVS&DD service $ 90.93 $103.49 $12.56 13.8

It is proposed that metered and other rates in our bylaw be increased by the same percentage
(9.0%) as the residential rates.

Regional Sewer Cost Allocation

The GVRD board recently approved a change in the method of how their costs are allocated to
us, they have now split out the capital costs associated with growth. The amount of growth
charge we will be charged for in 1995 is $337,166 being the per capita rate for the Fraser Sewer
area ($263) times our average rate of population growth from 1990 through 1994 (1,282). Now
that we have that information, we have some options on how to recover that cost:

a) to charge a fee for plugging into our mains

This is the method used in developing the proposed budget. The main disadvantage is that
the cost is new and fairly substantial, there will be some complaints from developers

ITEM | PAGE | |