Laserfiche WebLink
I. rXECUTIVE SUMIVIARY <br />A. lntroduction <br />Tlle City of Paris ("City'") curreiltly has treated water purchase contracts with CampUell Soup <br />Company ("Campbell Soup") aiid Lamar County Water Supply Disti•ict ("LCWSD"). Per the <br />conliacts, a cost of service sttidy is required prior to May 31 s` of each year to detei7nine the rates <br />to be cllaiged to CampUell Soup aiid LCWSD for the next twelve-month period. To comply with <br />the contractual terms, J. Stowe & Co., LLC has conducted a cost of serviee study. Contractual <br />rates were presented to tllese contract customers on May 25, 2010. This report describes the <br />study perfoi7ned for the City's contract customers as well as makes recommendations with <br />respect co the rates to be charged to the City's retail water and wastewater customers. The <br />report consists of nine sections, including the Executive Summary section, Also attached are <br />three appendices to supplement the findings of the report. <br />Following the Executive Summary, Sections II tln•ougli VI develop the methodology, <br />assumptions, and the revenue requirement for the water utility portion of the City's Watei• and <br />WasteNvater Utility. Sections VII aiid VIII develop the methodology, assumptions and the <br />revenue requirement for the wastewater utility portion of the City's Water and Wastewater <br />Utility. Finally, Section IX of thc rcport provides the anticipated contract customer revenues and <br />the reiail iate recommendations. The three appendices following the report consist of Appendix <br />A, operating characteristics of the system, Appendix B, contract customers and, Appendix C, the <br />determination of the retail water aiid wastewa[er rates. <br />B. Findintrs of' Rate Study <br />a. The total budgeted revenue requirement for the Water Utility portion of the test <br />year used in dctcrmining the retail n•eated water rate is estimated to be $7,377,263 <br />(TaUle Gl), a 0.0% change fi-om the City's last cost of service study. <br />b. The total budgeted retail revenue requirement for the Wastewater LJtility portion <br />of the test ycar is estimated to Ue $4,687,924 (1'able C-1), a 4.8% decrease from <br />the City's last cost of service study, with a decline in chemical and electricity <br />costs as the primaiy reasons for the decreasc. <br />i CityofPnris, Terns <br />hVnler nnd IPnsleivnler Cosl ojSer>>ice Studiy <br />Jwie 2010 <br />