wwe  COUNC

OCT

Mayor and Council October oth, 1978

1978

Finance Committee

1. Sewer and Water Rates for 1979

The Finance Committee reviewed a Report from the Treasurer
setting out estimated Revenues and Expenditures for the Water and Sewer
Utilities for 1979. Both Utilities are operating at a surplus, the
Sewer Utility appears to be providing enough Revenue to cover a certain
amount of Capital Work annually, plus a nominal transfer to Reserve to
build up the Fund for Future Work and replacements. This condition can
continue for 1979 without any increase in Sewer Utility Rates.

With regard to the Water Utility, a considerable amount of
funds have been transferred from the Reserve for Future Main Extensions
which is a Fund provided by Development Charges. This Fund is depleting
and with operations at the current rates, Revenue does not provide funds
to contribute to this Reserve as does the Sewer Utility.

The Committee feit that the Kevenue for the Water Utility should
be kept at a level that would provide for Capital Work as well as contribute
a small contribution to the Reserve for Future Main Extensions and therefore
recommends an increase of 25 cents ($0.25) per month in the Flat Rate
Water Rates and a proportional increase in the Metered Rates. Attached is
a statement of Estimated Revenues and Expenditures for the Water Utility:
as well as some comparative rates from other municipalities.

If Council agrees, a Rates By-law will be prepared for Council's
consideration.

2. Water Rates in the Rural Area

Earlier this year, Council approved a report from the Public
Works Committee recommending that we do away with Water Meters in the
Agricultural area and put all Agricultural properties on a Flat Rate,
other than the commercial enterprises, such‘as Greenhouses, etc. At
that time it was recommended that properties under one acre remain at the
Residential Rate of $4.75 per month and properties over one acre be billed
$5.25 per month.

The Finance Committee has reviewed this further as the Treasurer
has expressed concern that there are so few properties affected that it is
an administrative headache to create one additional category of Flat Rate
charges for such a few properties and also that the change overlooks the
fact that many bone fide farms are high water users,