Departmental Operating Expenditure
In 2012-13, the total expenditure of our Department was about $1.9 billion. Of this allocation, salaries accounted for about $770 million, with the rest being contributed by departmental expenses and capital items.
A Summary for the past five years of our operating expenditure is highlighted below:
| Summary of DSD Operating Expenditure for the Past Five Years | 2008-09 | 2009-10 | 2010-11 | 2011-12 | 2012-13 |
|---|---|---|---|---|---|
| ($M) | |||||
| Operating Expenditure (Total) | 1,657.2 | 1,736.9 | 1,776.8 | 1,838.6 | 1,910.7 |
| Recurrent Expenditure - Personal Emoluments | 699.5 | 693.0 | 685.9 | 727.4 | 769.3 |
| Recurrent Expenditure - Departmental Expenses (including Mandatory Provident Fund & Civil Service Provident Fund) |
957.3 | 1,035.9 | 1,083.8 | 1,111.2 | 1,141.4 |
| Non-recurrent Expenditure | 0.4 | 8.0 | 7.1 | 0.0 | 0.0 |
Summary of DSD Operating Expenditure in 2012-13
Capital Works Project Expenditure
In general, we have to conduct the Capital Works Resource Allocation Exercise annually to estimate the project expenses for all the capital works. We need to update and well document the cost estimate including cashflow of a project in all stages taking due account of the prevailing market rates and risk factors. Our Department also maintains a departmental committee for vetting the project estimates for inclusion in the LegCo Public Works Subcommittee papers and the vetting of pre-tender estimates of all works contracts, including term contracts. The cost estimate of a project will be closely monitored against the Approved Project Estimate and the administrative cap imposed by the Financial Services and the Treasury Bureau to ensure adequate funds for completing the approved works are available. In addition, we have a committee chaired by the Director to monitor the progress of all major capital works projects and to ensure that the funds allocated are effectively expended.
Value and Number of Drainage and Sewerage projects under planning, design and construction
| Unit | 2008-09 | 2009-10 | 2010-11 | 2011-12 | 2012-13 | |
|---|---|---|---|---|---|---|
| Value of Drainage projects under planning,design and construction | million of HK$ | 13,330 | 13,373 | 12,707 | 14,323 | 11,288 |
| Value of Sewerage projects under planning, design and construction | million of HK$ | 33,288 | 36,635 | 39,875 | 41,200 | 49,872 |
| No. of drainage projects under planning, design and construction | No. | 34 | 29 | 24 | 22 | 20 |
| No. of sewerage projects under planning, design and construction | No. | 55 | 58 | 70 | 70 | 77 |
Sewage Services Operating Accounts
The 'Sewage Services Charging Scheme' was introduced on 1 April 1995 according to the "Polluter Pays" Principle. All premises connected to public sewers are required to pay the sewage services charges. The charges were set to recover only the operating and maintenance costs of the public sewage facilities, while the capital costs of building these facilities will continue to be borne by the Government.
The revenue and expenditure in the Sewage Services Operating Accounts for the past five years are summarised in the Table below:
| Summary of Sewage Services Operating Accounts for the Past Five Years | 2008-09 | 2009-10 | 2010-11 | 2011-12 | 2012-13# |
|---|---|---|---|---|---|
| ($M) | |||||
| Sewage Charge Revenue | 532 | 583 | 639 | 703 | 776 |
| Trade Effluent Surcharge Revenue | 189 | 192 | 201 | 204 | 207 |
| Other Revenue | 34 | 35 | 35 | 40 | 40 |
| Overall Revenue | 755 | 810 | 875 | 947 | 1,023 |
| Expenditure (excluding depreciation) | (1,273) | (1,377) | (1,402) | (1,483) | (1,538) |
| Depreciation | (687) | (698 ) | (723 ) | (751) | (801) |
| Overall Expenditure | (1,960) | (2,075) | (2,125) | (2,234) | (2,339) |
| (Deficit) | (1,205) | (1,265 ) | (1,250 ) | (1,287) | (1,316) |
Notes : # The 2012-13 figures are provisional. The final figures will be posted on our website after endorsement by the Sewage Services Accounts Committee.
Overall Revenue of Sewage Services Operating Accounts Breakdown in 2012-13
Overall Revenue and Expenditure in the Sewage Services Operating Accounts
Sewage Services Operating Cost Recovery Rates
The sewage services operating cost recovery rates for 2011-12 and 2012-13 are as follows:
| Total | ||
|---|---|---|
| 2011-12 | 2012-13 | |
| Revenue of Sewage Charge and Trade Effluent Surcharge ($M) | 907 | 983 |
| Expenditure (excluding depreciation) of Sewage Charge and Trade Effluent Surcharge ($M) | 1,443 | 1,498 |
| Operating Cost Recovery Rate (%) | 62.9 | 65.6 |
Notes :
- "Miscellaneous services" are excluded from the above calculation.
- Depreciation is at present not recovered through the Sewage Charge and Trade Effluent Surcharge.
- The 2012-13 revenue and expenditure are only provisional and are subject to endorsement by the Sewage Services Accounts Committee.
Adjustment of Sewage Services Charge
To enhance the "Polluter Pays" Principle and to encourage the public to conserve valuable water, the Legislative Council has approved a gradual increase of the sewage charge for 10 years starting from 1 April 2008. Since that day, the sewage charge rate was revised from the original $1.20 to $1.31 per cubic metre of water supplied. The rate is and then gradually increased by 9.3 per cent per annum until reaching $2.92 per cubic metre on 1 April 2017.
Sewage Charge Rate
