2012 – 2016 Financial Plan January 13, 2011

 Provide sewer collection and treatment to the City of Nelson  Treatment plant built in the ‘60’s  Nearly 80 km of sewer pipe  7 Pump Stations  Submarine Force main  Fairview Interceptor  2,200 manholes Department Overview

Sanitary Master Plan  Presented late in 2010 (draft form)  Take stock of the asset and develop a plan for meeting the City’s current needs and future requirements  Long term planning is necessary to ensure the sanitary sewer system functions to provide the desired level of service, meets provincial and federal regulations, and generates sufficient revenue to cover the costs of O&M, capital improvements, and replacements.

 Aging work force ◦ Credentials requirement increasing  Planning/Engineering/Project Management ◦ Consultant availability and proximity  WWTP H2S ◦ WorkSafe  CMP Pipe Issues and Challenges (2011)

 Master Plan - Strategic Priority  Insituform Relining ◦ Competitive bidding – increased value  New Rodding Machine  Video Camera 2012 Capital:  WWTP Upgrades ($150K)  Lift Stations ($125K)  Sewer Mains ($300K)  Insituform Relining ($600K)  Catch basin Re-direct program ($50K) Accomplishments & Highlights (2011)

2011 Budget Overview

 Reduce sewage flows through pipe replacement, relining and a catch basin redirect program  In house video inspection program  Develop replacement program in conjunction with water utility and road network upgrades Strategic Priorities

2012 Budget Highlights

 Utility Rates: ◦ Planned increased in utility rates to support 25 year capital and operating plan ◦ – 5% ◦ 2015 – % ◦ After 2020 rate increases anticipated to decrease to inflation 2%)  Other Revenues: ◦ Waste water utility continues to have funding support from Community Works fund ($1,150k over next 4 years) ◦ Borrowing planned to support forcemain renewal

 Projected Increases in 2012 ◦ Cupe Labour increase of 3% ◦ Some other expenses projected a 1% or 0% increase to help offset labour pressure

Capital

Budget Plan

 Scenario 1: Accelerate use Community Works Fund ◦ Increase immediate funding to support insituform program  Scenario 2: Borrowing ◦ Establish criteria for borrowing fixed portion of capital expenses