The City's water and sewer operations are funded through a cost-recovery charge paid by residents and businesses who receive the services from the City. The charge pays for water consumed and discharged into the city's sewer systems. Rural residents who do not have access to municipal water or sewer services are not charged.

This section identifies the financial challenges the City faces in its water and sewer programs. It provides a 10-year forecast of capital requirements, along with a four-year forecast of additional funding requirements to operate the system.

The additional revenues generated from the rate increases outlined in LRFP II are insufficient to fund the operating and capital funding requirements over the 2006 to 2017 time period and to allow for the maintenance of a yearly $20 million reserve fund balance per Council direction. Strategies to address the funding gap are presented in this section.

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