Utility Reserve Funding

The following utility reserve balances will experience significant changes as a result of project expenditures that meet the criteria for which the reserve was intended: project and related servicing requirements in the Northeast required to facilitate development h Water Asset Replacement Reserve—funding the water utility asset replacement needs h Sewer and Drainage Asset Replacement Reserve—funding the sewer and drainage utility asset replacement needs h Sewer and Drainage Operating Surplus Reserve – funding internally financed projects (e g Cedar Drive works) to be repaid with future DCC receipts

The following chart summarizes the utility reserve activity and indicates a steady growth in reserve balances, mainly driven by the contributions to the Water and Sewer and Drainage Operating Reserve to address the anticipated significant Metro Vancouver Regional District rate increases required to accommodate the impacts of the growing regional capital infrastructure improvements This will assist in stabilizing these increases and mitigate the volatility in the financial impacts to Coquitlam rate payers The significant increase in 2023 withdrawals is due to the funding of the capital work in progress for projects that are carried forward from previous years, such as Phase 1 of the Austin Works Yard Renewal The increase in 2023 withdrawals is also related to significant water asset replacement projects to align with the City’s acceleration of local road paving works and the interim borrowing from the Sewer and Drainage Operating Surplus Reserve with repayment from DCCs for the Cedar Drive

The following is the Schedule of Utility Reserves

Utility Reserve Balances 2019–2027 *Unaudited