THE CORPORATION OF THE CITY GF PORT COQUITLAM

MEMO

I. Zahynacz, » DATE: September 05, 1991
City Engineer

J. Maitland,
City Treasurer.

Watermain Breaks Account

{ have some concerms regarding your request for additional funds for the Water
Maintenance account:

1. In the budget Council approved an amount of $227,100 for Water maintenance
which you in tum broke down and allocated to your various sub accounts. Are
there any of the other sub accounts which can reallocate funds to partially offset

the watermain break account?

Is this a one shot deal or will the maintenance account be permanently increased
by $90,000? Our ability to raise revenue in the water utility is almost entirely
from user fees, 2 $90,000 increase in user fees would equate to over 7% increase.
My concern here is that as we are now calculating our 1992 budget, we must

determine if this type of occurance is going to continue.

We have a small surplus in the Water Fund of roughly $250,000 this amount is as
low as I would recommend us going. The only other source of funds for the
$90,000 is from the Water Capital Reserve which had a balance of just over
$800,000 at the start of 1991. As you can see these are the only sources available
to offset any budget variances it is very important that our 1992 budget be set at

the appropriate level.

Your comments on the above would be appreciated.

Wiad

Maitland