City ex­pects $1M wa­ter, sewer sur­plus

North Bay Nugget - - NEWS - Gord Young

North bay res­i­dents con­sumed more wa­ter than an­tic­i­pated this year, con­tribut­ing to a pro­jected year-end sur­plus of nearly $1 mil­lion.

based on fi­nan­cial pro­jec­tions as of Sept. 30, the city is an­tic­i­pat­ing a $924,760 wa­ter and sewer bud­get sur­plus, ac­cord­ing to a re­port pre­sented to coun­cil tues­day.

the un­spent dol­lars are the re­sult of higher con­sump­tion, lower per­son­nel costs from gap­ping and va­can­cies, lower in­sur­ance and ma­te­rial costs, and in­ter­est sav­ings from de­fer­ring bor­row­ing for some cap­i­tal pro­jects. the sur­plus is par­tially off­set by higher fuel and util­ity costs, states the re­port.

it shows that $413,329 of the pro­jected sur­plus re­lates to the san­i­tary sewer sys­tem, while $511,431 is re­lated to the wa­ter sys­tem.

a lit­tle more than $427,480 of the pro­jected sur­plus is due to higher than an­tic­i­pated con­sump­tion be­tween June and au­gust.

that’s in sharp con­trast to last year when there was an over­all year-end deficit of $513,352, partly due to a drop in wa­ter us­age.

it’s be­lieved that fewer res­i­dents wa­tered their lawns and gar­dens dur­ing the spring and sum­mer of 2017 due to the amount of rain­fall that hit the area.

as a re­sult, the city bud­geted in 2018 for lower con­sump­tion for both res­i­den­tial users and those within the in­dus­trial, com­mer­cial and in­sti­tu­tional sec­tor.

Staff in­di­cated last year an anal­y­sis was be­ing con­ducted on a yearover-year ba­sis by ac­count to de­ter­mine root causes of the drop in con­sump­tion within that sec­tor.

Staff also in­di­cate in the lat­est re­port that changes in con­sump­tion lev­els are likely to con­tinue.

“it is an­tic­i­pated that an­nu­ally the city will con­tinue to ex­pe­ri­ence fluc­tu­a­tions in con­sump­tion pat­terns based on sea­sonal trends, chang­ing weather pat­terns and con­ser­va­tion ini­tia­tives un­der­taken by cus­tomers as they con­tinue to adapt to the me­tered struc­ture,” states the re­port.

risks, in­clud­ing fluc­tu­a­tions in con­sump­tion, fuel and util­ity costs, along with po­ten­tial un­fore­seen is­sues, are high­lighted in the re­port as pos­si­ble risks that could see changes to the pro­jected sur­plus be­fore the end of the year.

the re­port also rec­om­mends any sav­ings in­cluded in the sur­plus re­lated to de­ferred bor­row­ing be trans­ferred to a re­serve in or­der to cover fu­ture prin­ci­pal re­pay­ment costs. the re­port, how­ever, does not show how much that may be.

a sep­a­rate re­port in­di­cates there is $6 mil­lion in debt fi­nanc­ing be­ing car­ried for­ward into 2019 from the 2017 and 2018 cap­i­tal bud­gets which has not yet been is­sued be­cause the re­lated pro­jects are “still in progress.

“the fore­casted prin­ci­pal and in­ter­est pay­ments for 2019 as­sume that the 2017 au­thor­ity will be is­sued in early 2019 and the 2018 au­thor­ity will not be is­sued un­til late 2019,” states the re­port. “this means that re­pay­ments on the 2018 au­thor­ity will not oc­cur un­til 2020 thus re­duc­ing the amount of prin­ci­pal and in­ter­est bud­geted for 2019.”

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.