Cariboo Regional District

Building Communities Together

 

 

2008 Business Plan

Lac La Hache Sewer (1770)

 

Mitch J. Minchau, Manager of Environmental Services

 

Working in partnership with communities, large and small, to make the Cariboo Chilcotin a socially, environmentally, and economically desirable region to live, work and play.

 

Department/Function Services

 

The Lac La Hache Sewer function was established in 1976 and now services approximately 153 land parcels. The Main and Hamilton Lift stations were refurbished in 1998.  The Beach and McKinley lift stations were upgraded in 1999.  Regular inspection and maintenance to system components is undertaken to ensure continuous operations.

 

Taxation is collected by way of a parcel tax and a variable rate user fee.  Function authority is provided by the Lac La Hache Specified Area Sewer Management Bylaw No. 1905.

 

As Electoral Area “G” is the only stakeholder, and the Local Government Act requires more than one vote, the entire Board is responsible for the governance of this service.

 

Business Plan Goals, Objectives & Strategies

 

No new goals proposed at this time.

 

Overall Financial Impact

 

No increase in requisition is required in 2008.

 

The capital reserves at the end of 2006 were $51,861 and a Municipal Finance Authority surplus payout of $282,798 also exists for a total available capital amount of $334,659. At this time, the current user fee and parcel tax rate is adequate to maintain the financial needs of the service. The system has a yearly debt payment of $25,723 that will expire in 2018. 

 

The sewer collection system, comprised of PVC piping and associated lift stations, has an approximate life expectancy of 100 years.  The majority of the system’s components were constructed in 1976; as such, the remaining life expectancy of the sewer system is 70 years. Based on this life expectancy, the cost of construction in 2077, accounting for a 1.25% annual inflation rate, would be approximately $10.3 million.  In order to ensure that sufficient future funds are available to replace the system components, additional capital reserve contributions should occur.  The long-term budget proposes that a modest annual capital contribution of $2,500 occur from 2008 to 2017.  When the existing debt payment expires in 2018 a reduced parcel tax rate should remain in effect and $18,000 per year should be transferred to capital reserves for the period from 2018 to 2077.  With this approach, no new taxation levels will be required and sufficient funds will have accumulated to replace system components.

 

Significant Issues & Trends

 

The system shows no indication of any significant structural problems. At this time, Regional District staff does not anticipate any major repairs.  More requests are being received for hook-up to the utility as it is becoming more expensive to develop individual sewer treatment systems under the new requirements from Health Authorities.

 

The Public Sector Accounting Board now requires local governments to report and record tangible capital assets and amortize these assets over their useful life.

 

Measuring Previous Years’ Performance

 

Issues from 2006 regarding short and long term plans to address operational and capital funding requirements for the function have been addressed and reported in this business plan.

 

Other Achievements

 

Routine maintenance occurred over the past year.