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Page 2
<br />function, so 100% is going in to the volume component, as you can see
<br />on page one; however, the treatment plant is a different situation
<br />because the plant is designed not only to meet the strength loading
<br />consisting of the BOD, TSS, and Ammonia loading, and what they have
<br />done is to utilized the design criteria of the plant. Mr. Stowe said
<br />they could go in and look at the specific assets that is within the
<br />treatment plant and identify out of those investments in total how much
<br />is related to each function, and as you can see, we have functionalized
<br />the actual treatment plant for $4,380,805. - volume $602,384., BOD
<br />strength $2,376,141., TSS strength $1,302,073., and NH3 strength
<br />$100,207. Mr. Stowe said that page two was a recap of those figures.
<br />Mr. Stowe said the next step, which is on page three, is the actual
<br />development of the wastewater revenue requirements. The first item is
<br />customer accounting, and in the budgeting process, this is captured
<br />under water in total. Mr. Stowe asked the Committee to remember that
<br />there was a reduction in Customer Accounting by $124,000. in the water
<br />section, they are now moving that amount over to the sewer component so
<br />that they can recognize it as a wastewater function. On the Wastewater
<br />Treatment Plant, we have budgeted $664,985., there are several items
<br />that needed adjusted, electricity $63,478., and building maintenance
<br />$63,278. with a total adjustment of $791,471. The Sanitary Sewer has
<br />been increased from $336,995. to $356,995. representing an increase of
<br />$20,000. contributing to building maintenance. There were no
<br />adjustments in the Lift Stations at this time. General Fund Support,
<br />they identified $294,383. relating to the General Fund services
<br />provided on behalf of the wastewater system and it's operation. Audit
<br />fees, they picked up $5,000. which is only a reclassification, Debt
<br />Service, you can see there was no adjustment. Mr. Stowe placed
<br />emphasis on the present budget, the Capital Outlay for Wastewater
<br />Treatment was $11,000. and Sanitary Sewer was $27,000. Mr. Stowe
<br />stated that they were aware of the current EPA Order for the Wastewater
<br />System, and they were waiting before finalizing this report, that City
<br />Staff is working on a capital improvement program, which will address
<br />some of the problems that are existing in the Wastewater Collection
<br />system, but as Mr. Sarma highlighted there was 1.3% MGD a day as far as
<br />inflow - infiltration, and based on our estimates of the cost at this
<br />time for treatment that adequates for approximately $2,000.00 a day
<br />due to the inflow - infiltration, so this is a number we have to be
<br />aware of, and recognize the need to develop a plan and spend money that
<br />is necessary to improve the system. Mr. Stowe said if the I & I could
<br />be cut in half, from the 33.3% to 16 %, that would be saving of
<br />$365,000. a year, this amount would finance approximately 3.5 million
<br />dollars in improvements, in other words, the savings would pay for the
<br />debt service.
<br />Mr. Stowe referred to page four where you can see that the grant total
<br />from what was budgeted 1.5 million dollars, it has been increased to
<br />2.1 million dollars for revenue requirements for wastewater. The next
<br />step is to functionalize these expenses which is shown on page 5. For
<br />Customer Accounting, again this is a customer charge that flows
<br />straight across, Wastewater Treatment total was $791,741. of which
<br />$156,105. relates to volume, $355,251. BOD, $251,179. TSS, and $29,206.
<br />NH3, Sanitary Sewer is a volume related item which is $356,995., Lift
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