Deficit Applications
Deficits and Deficit Applications
Municipally owned public utilities are expected to operate on a breakeven basis; however, if an operating deficit exceeding $10,000 or 5% of the utility’s operating budget is anticipated or occurs, The Municipal Act requires municipalities to apply to the Public Utilities Board (Board) for approval of the deficit and recovery methodology. Typically, municipalities will address deficits either through the use of accumulated surplus funds. Alternatively, they may use reserves funds, or, rate rider surcharges.
Deficit Application Process - What must be submitted:
PUB Schedule 9
Council Resolution of Approving Deficit and Recovery Method
Explanation of Deficit
Failure to submit all pieces required for an application will result in it not being accepted and sent back to the Utility to refile.
References
Board Order No. 151/08 - Water and Wastewater Utilities Financial Reporting Requirements
Board Order No. 93/09 - Regulatory Requirements - Rate Setting, Required due to adoption of the Public Sector Accounting Board Accounting Standards for local Governments
