June 15, 2009 - District of Mission

Municipal Forest — 50th Year Anniversary Introduction and Overview 95
The District currently has about $21.1 million of outstanding external debt, which is down from the
$22.5 million total at the end of 2007. Approximately $4.5 million or 21% of this debt is related to the
regional water and sewer systems. The District will aim to take advantage of early debt payout
opportunities in the future, to the extent that reserve levels allow for and as has been done in the
past, to reduce its overall debt levels.
Regional Utilities
The District of Mission and the City of Abbotsford, as joint owners of the regional water and sewer
utility systems, are in the process of completing comprehensive, long-term regional water and sewer
master plans. The financial implications of these master plans will have to be assessed once they
are completed. Indications are that the systems will require significantly more capital investment
over the coming years to address growth and infrastructure renewal. The District of Mission has
adopted a strategy to prepare for this impact, including incremental annual increases in utility rates,
increased development cost charges, the use of gas tax grant funds for priority projects, the use of
internal borrowing where possible and external borrowing if needed.
Development
The District of Mission, like many other communities in British Columbia, is experiencing a downturn
in development activity and related revenues. The District has taken steps to bridge this downturn in
2009 by utilizing 2008 development revenues. A similar strategy is in place for 2010. Should the
downturn perpetuate into 2011, the District will have to look at other measures to offset the loss of
development revenues.
Infrastructure Renewal
The new tangible capital asset reporting initiative will highlight, for all local governments, the
condition and value of important infrastructure (roads, buildings, water and sewer systems, etc.) and
the fact that in most cases insufficient funds are being set aside for infrastructure
renewal/replacement. Most local governments do not have the capacity to raise user rates and
property taxes to fully fund infrastructure renewal and to address this infrastructure deficit. Local
governments are in dire need of assistance from senior levels of government to address this problem
including other legislated sources of revenue and easily accessible, unconditional grants.
Ken Bjorgaard, MBA, CGA
Director of Finance
2008 Annual Report - District of Mission
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