BACKGROUND:

The current procedures for billing of new flat rate connections results in new connections
being billed at some time after the services are in use. This period can be from one month
to many months after service has started and may result in incorrect billings where
properties have been resold before initial billing occurs. Residents may receive two bills
in the same year, one being a portion of the previous year and the other being the current
year levy, resulting in confusion for some residents.

The new procedures being recommended in the above By-law amendments are intended to
improve the efficiency of collecting the initial prorated levy for Single Family Residential
or Duplex properties only. In addition to simplifying the billings for the majority of the
Cities new Water Utility connections the new procedures will result in increased
consistency with existing procédures of other local municipalities.

The procedures of many local municipalities in billing new users of utility services is to
collect a prorated levy at some time during the process of issuing the building permits the
new improvements. |

The procedures administered by the city in comparison to other municipalities have been
discussed by representatives of the Treasury, Engineering and Building Departments. It
has been determined that the collection of utility charges should be at the time an
applicant is issued the billing for "Engineering charges for a Building Permit to construct
improvements’. | |

It has been determined that the most efficient manner of imposing fees is a prorated billing
for a period starting from 120 days from the time of the issuance of the billing for
Engineering charges, to the end of the year in which the period starts.

To enable staff to amend existing forms and procedures smoothly, September 1, 1990 has
been jdentified as the ideal date to implement the amended procedures.

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Bill Wiseman
Deputy Treasurer-Finance

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