Our budgeting team considers the following aspects when calculating the community service fee (CSF):

• Historical expenses

  We evaluate actual expense trends from the previous year based on individual cost items. Depending upon the operational plan, we decide whether or not to include them again in the following year’s budget.

• Resource allocation on site

  We periodically review resources on site to find ways of improving performance by employing new technology and operational methods based on international best practices.

• Service provider contracts

  By regularly reviewing service provider contracts, we can evaluate key areas of improvement such as performance and cost savings. This helps us to determine future budgets and predict expenses.

• Capital asset evaluation (maintenance, repair and replacements)

  Capital assets that are no longer under manufacturer’s warranty are regularly reviewed for major maintenance or replacement. Essential equipment, such as sewage pumping stations and/or similar items, supports the overall infrastructure of the community.

• Provision for doubtful debts

  This amount allows for the setting aside of a small portion of CSF collections as provision in case certain receivables are required to be written off in the future.

• Surplus/deficit adjustment from previous years

  Finally, any surpluses or deficits from previous years are brought into consideration during the determination of the CSF rate for the current year.