What would the impact be of creating a 100% subsidy?
Property owners requiring PDC work would not be charged but every taxpayer would have increased sewer rates. There are approximately 90,000 applicable residential dwellings in London and the average PDC lifespan is 90 years. Therefore, under average conditions, the City should be replacing 1000 PDCs per year at an approximate cost of $11 million. Currently the City is replacing 30 to 35 PDCs at a cost of approximately $200k to the City with an equal amount borne by all the homeowners who have their PDCs replaced. Even under the current policy, as the number of PDC replacements increase the City will be required to increase its sources of funding over time to cover the increased costs for its share of the works. If there was a 100% subsidy the City’s costs would increase significantly in a short period of time. For example, if only 500 PDC’s are replaced in a year, the increased cost to the City would be would be $5.3 million or a $5 per month increase on the average sewer bill which is
