City's Water Utility Budget heading for 100K deficit by years end

City of Prince Rupert workers tending to another 
water line issue in the city earlier this summer

It's been a rough year for the City of Prince Rupert's Water Utility budget, with a number of high profile water line breaks making for the visuals, but it's in areas where most residents probably don't think much about, where things are making for some other tough challenges for the Finance office. 

That with an impact on the City's Water Budget coming from reduced commercial revenues for the water supply and expanded testing required for the city's drinking water, those tests required as part of the Two Water warnings issued since August.

Such is the state of the strain on the city's water funding, that the City's Financial Officer Corinne Bomben noted that the fund is likely heading towards a 100,000 dollar deficit before the year comes to an end.

Speaking as part of her review of the September 2020 Financial Variable report at Monday's City Council Session, Ms. Bomben outlined some of the background towards the city's water woes of 2020.

"The utilities budgets are performing as budgeted with the exception of the water utility, it is expected there will be a deficit for the year, by year end, given the reductions in commercial revenue experienced related to the pandemic. 

This combined with the increased testing related to the Water Advisory issued in August and again at the end of October from the significant rainfall events, means that we are projecting the deficit to be 100,000 dollars or five percent of the budget in the water utility"-- City of Prince Rupert Financial Officer Corinne Bomben on the City's water utility budget issues.

Surprisingly, none of those Council members in attendance on Monday had any questions for the CFO following the delivery of her September Variance report; leaving the topic and any answers as to how the city may address the water budget shortfall for some other time it would seem.

Some on Council did offer up comments and raised questions on a wider overview of utility issues later in the meeting; where they deferred any plans for the moment when it comes to proposed rate increases for the next four years starting in 2021.

Ms. Bomben's presentation of the September Variable report can be reviewed from the City's Video Archive, starting at the one minute mark.

The two September Varirance reports for Expenses and Revenues were provided as part of Monday Council Agenda, they can be explored from the charts below:

Notes from the September Variance Report 
(click to enlarge)

For more notes on Monday's Council Session see our Council Timeline Feature here.

A wider overview of past Council Discussion themes can be found here.