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UN Chin

Capital Works

In 1991 we increased rates to get capital replacements back on track, unfortunately as
revenue projections did not come about funds expected to be available for capital were not
available. A significant portion of the rate increase will be aimed at providing funds for
capital replacements.

Projected works for 1992 and 1993 are shown on. the schedule.

User fees

Existing flat rate user fees will increase in 1992 from $8.84 per month to $11.25 per
month and other rates covered in the bylaw will increase proportionally.

The largest portion of the increased rates though is as a result of the anticipated increase in
the GVS&DD levy resulting from their Long Range Plan.

Senior Citizen rate waiver

The budget and rates are calculated on the assumption that the existing waiver will be
extended to new rates, at roughly the same percentage as the current waiver provides. The
current waiver is 25% of rates arid would be expanded to apply to the increased rates.

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CONCERNS

Our capital reserves in both utilities are being substantially reduced to the point where
frankly I would not recommend any further withdrawals from them. Our options are to
reduce the capital program or increase rates to restore reserves fo a reasonable level. I
have talked with Igor and it is my understanding that the proposed works for 1992/93 are
catching up work which should have been done in the past and he does not recommend
further delays. Rate increases would reduce the spending from the reserves and if
projected rate increases for 1993 are carried through some funds will be added to both
reserves in 1993. |

The GVRD Long Range Plan will require substantial increases in levies on our taxpayers
and this may have an adverse effect on the City as there may be a reluctance to fund City
service level increases at the same time that the taxpayer is getting substantial increases
on the GVRD portion of the City’s billings.