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The City of Port Coquitlam

MEMORANDUM
B. Kirk DATE: October 29, 1992

City Administrator

FROM: J. Maitland, City Treasurer -
Deputy Administrator

SUBJECT: 1993 Water Utility Budget & Rates
FIG Committee October 21/92

RECOMMENDATIONS:

1, That the Engineering Department be requested to prepare a five year capital
projection for the water utility prior to the commitment to any water projects for 1993,

2. That the City’s water rates be increased as outlined in the attached schedule.

BACKGROUND & COMMENTS:

Attached is a projected budget for the Water Utility which does not include any capital
expenditures but does include setting aside over 15% of rates, totalling $339,300 for future

capital requirements.

In 1992 we budgeted to spend some $178,150 from our reserve account and as a result of
changing the program through the year we will take some $482,000 from the reserve this
will reduce the balance in the reserve to under $250,000. This reserve combined with our
operating surplus in the water utility will total $500,000 at the end of 1992 and I can not
recommend any further reductions in these funds.

It is recommended that prior to approval of any capital expenditures for 1993 that the
engineer prepare a detailed five year capital plan.

The G. V. RB. D.’s levy in 1993 for water purchases totals $690,500 and includes the cost
of operation, maintenance and capital for the water district. Costs in 1992 were higher
than we had anticipated due mainly to the timing of when budgets are finalized (see
separate report). The increase in costs from what was anticipated in 1992 to what is
expected in 1993 is $12.20 per residential unit. Representatives from the Regional District
have been invited to the Council meeting to address their budget.

The City’s operation and maintenance costs have increased as a result of growth, new pi
(151 km of watermains to maintain up from 147.5 km in 1992) and facilities to maint

and inflation.

Rates:
In order to balance the budget, rate increases averaging 20% are required,

1992 1993
Annual residential rate $ 12000 $ 144.00

Prompt payment discount $ 1200 $ 1440
Net payment due $ 108.00 $ 129.60

Included in the schedule of rates is a gontinuation of Council policy which gives seniors a
reduction in rates, this reduction ts in a senior paying $100.80 up from $84.00 in 1992,

. Maitland, City Treasurer~
Deputy Administrator