ou OOUNC

OCT, 3 1977

Mayor and Council September 30th, 19

L.D. Pollock
City Administrator

Re: Dyking Takeover

Council asked for some information regarding the cost of maintenance and
operation of dykes and related pumping facilities that can be expected
as a result of the City taking over the Dyking Area.

At present, the City has budgeted $16,000.° for Dyke Maintenance and
Control and will recover $7,200. for estimated net expenditure in 1977
of $8,800. The Dyking District has budgeted $26,000. for 1977, therefore
the total cost with the City and the Dyking District budgets together,
total $34,800. for the year. It should be pointed out that when the
City assumes its share of the Dyking District cost of $26,000. this does
not represent an increased Tax burden to the City as these funds are
presently being raised by direct taxation of the property owners in the
dyking area. The takeover will enable us to spread these costs more
equitably over all property owners in the City..

In taking over the South portion of the Dyking District, we will not be
assuming the full costs presently borne by the Dyking District as the
portion North of Debouville Slough will still remain in the control of

the Dyking District. Our anticipated costs for 1978, making due allowances
for increases in Hydro and wages, etc., will probably be as follows:

Power and Pumping $10,600.
Patrol of Dykes and Maintenance 17,500.
Repairs and Contingencies 5,000.

Total $32,500.

In addition to the foregoing, when the construction work has been completed
the City's share of the cost will amount to $336,000. The annual repayment
of this amount, assuming a 20 year loan at 9%, would be $36,800. The

City will therefore be responsible for the two amounts above, $32,500.

for operating and maintenance and $36,800. for loan repayment, amounting

to $69,300. or approximately 1 Mill. After the Dykes have been completely
rebuilt, there is a possibility that maintenance costs may be reduced.

On the other hand, the’ City may decide in the future to improve the
pumping facilities which would incur additional costs.

I might point out that the Dyking District presently has a Renewal
Reserve Fund of approximately $121,000. When the City takes over the
South portion of the Dyking District, we will receive approximately
$86,000. from this Reserve, which could cover any future Capital Costs

for pumping, ete.

.

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“L.D. Pollock