|
Page 2
<br />of the residential class, $4,504,280. for the Commercial class,
<br />$3,949,761. Campbell Soup, and $2,628,424. for Lamar County Water
<br />Supply District. Mr. Stowe explained that the only thing the
<br />investment use is since they are using a cash basis is to develop a
<br />method for allocation of debt service. The next step is to go in and
<br />look at the Revenue requirements using the 1987 -88 Budget as shown on
<br />page 5. The first item they looked at was Billing and Collecting, you
<br />will see adjustments made removing approximately 50% of the cost that
<br />will be assigned over to the sewer because the function of the Billing
<br />and Collecting is on an equal split between the Water and Sewer, also
<br />an adjustment of $7,500.00 was made due to the fact that $30,000. was
<br />budgeted for this study which would not be needed on an occurring
<br />basis, but you do need to be collecting something for future studies.
<br />Mr. Stowe said they had also picked up $27,174. for Raw Water Storage
<br />(Pat Mayse). On Raw Water Transmission $220,447. this is for power to
<br />pump water from Pat Mayse up to the treatment plant, Water Production
<br />you will see a decrease - the Operating and Maintenance Pat Mayse by
<br />$77,000., and just reallocated it, recognized for the $27,000.
<br />associated with operating and maintenance raw water, and $49,000. as
<br />debt service, and you can also see there is a whole series of expenses
<br />that we are reclassifying, and trying to get in alignment with grouping
<br />of plant, and the functional ization that we are trying to allocate to
<br />that being base, max hour, max day and customer charge.
<br />Mr. Stowe referred to page six pointing out Water Revenue requirements
<br />- the far right hand corner, after all adjustments have been made
<br />including the future storage cost of $80,106. for Pat Mayse, the total
<br />Revenue requirements of $3,309,533. for the test year, and said the
<br />next step is to test to see if the City will make those revenues under
<br />the existing rates. Going to page seven, you will see a summary for
<br />meter sizes A -I, we will collect $2,071,280., Campbell Soup's contract
<br />$825,032., Lamar County Water Supply District's contract $494,518.
<br />total of $3,390,830. Mr. Stowe reminded the Committee to remember the
<br />estimate on revenue requirement including the future capacity cost of
<br />$80,000. was $3,309,000., and what that shows is the current contracts
<br />and current rates are adequate to hit our revenue requirements for
<br />water. Mr. Stowe pointed out that the one thing missing out of this
<br />cost function is the Capital Outlay Budget, and asked the Committee to
<br />remember the planning process that needs to be considered. Mr. Stowe
<br />said the Engineering Department is analyzing the system and is going to
<br />come up with cost estimates of the Capital Improvements that are
<br />required to meet the low pressure complaints that the Committee has
<br />talked about, and maintenance items that need attention. Mr. Stowe
<br />also called the Committee's attention to the fact that this is based on
<br />a 24 month average, and what they are assuming when they project
<br />forward is that the average of the past 24 months are going to take
<br />place in the next 12 months. This may or may not be the case, you may
<br />have a real wet summer this year, it would be that the sales drop below
<br />the average, by the same token, if we have a very dry summer sales
<br />could increase.
<br />Mr. Stowe went to page 8 which shows 1987 -88 Contract Revenue for
<br />Campbell Soup, page 9, Lamar County Water Supply District's contract
<br />1987 -88 contract revenues distribution service charge that gives you
<br />
|