Question on sewer rates -- Poll.

Sewer rate revision.

Faced with the unexpected sewer rate increase by the City, Council is faced with a decision of picking one the four options presented by Staff. These four options are as follows:

Option #1: Increase the sewer rates for the potential shortfall of $275,000 This option would have significant financial implications to an individual property owner on sewer. The consumption rate would be adjusted from $1.26 to $1.54 and the base rate from $83.50 to approximately $138.50. With a quarterly average of 50 cubic meters per, the additional costs would be approximately $69 per quarter, per customer or $138 for the remainder of 201 O. This option would provide the necessary funding to meet the estimated costs for treatment and disposal but would put significant financial hardship on the individual homeowner.


Option #2: Increase the consumption rate to the current rate of $1.54 This option would pass the increased consumption costs of the system along to the users of the system. The consumption rate would be adjusted from $1.26 to $1.54 per cubic meter effective July 1,2010. Based on current consumption of approximately 101,000 cubic meters, the additional $0.28 per cubic meter would generate an additional $28,280 in revenues per quarter or approximately $56,500 for the rest of 201 O. This option would leave the sewer utility with a potential shortfall of $218,500 to address. This could be funded from the sewer surplus/reserve balances to get the utility through 2010

Option #3: Fund the shortfall equally from user rates and surplus/reserves This option would fund the shortfall of $275,000 with $135,000 from surplus/reserves and the other $135,000 from increased user rates. The consumption rate would be adjusted from $1.26 to $1.54 and the base rate from $83.50 to approximately $102.50. With a quarterly consumption average of 50 cubic meters, the additional costs would be approximately $33 per quarter, per residential customer or $66 for the remainder of 2010. This option would fund the calculated shortfall with the least immediate financial impact to the users of the system. This option would also require the rates to be revisited for 2011 to account for the shortage that was funded from surplus.

Option #4: Fund the shortfall entirely from Surplus/Reserves This option would use available balances to fund the calculated shortfall and not adjust the user rates. This option would significantly deplete the District's surplus/reserve balances and would likely require a significant rate increase in 2011 to account for the cost increases to the system as there would be minimal reserve balances to draw from in future years.

Were you to make the decision, which option would you chose? Unfortunately, Google's "Poll function" is not working so please drop me a line with your choice of the above four options (1, 2, 3 or 4) (coldstreamer@shaw.ca). Your name will not be used in the polling. Inform your neighbours of this issue in case they have no access to computer. Your help is appreciated.

Gyula.

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