(a) User Charge System.
(1) The rate charged for OM&R shall be determined by the following calculations:
Total Annual OM&R Costs-less costs for extra strength BOD and Suspended Solids divided by the total Annual Billable Flow - shall determine the rate per 1,000 gallons.
(2) The monthly rate for Debt Service shall be determined as follows:
Annual amount of debt previous to 1997 is fixed at $13.00 per month per bill.
WPCLF Annual Loan Repayment - divided by the total number of users for each month.
Total Annual Capital Improvements Cost - divided by the total annual flow - determined the rate per 1,000 gallons.
(3) Extra Strength Surcharge:
BOD rate=total annual cost for BOD treatment divided by the total annual pounds treated.
Suspended Solids rate=total annual cost for suspended solids divided by the total annual pounds treated.
(b) Annual Review of Charges. The user charge and debt service charge shall be reviewed annually by the City in order to determine whether or not they are sufficient to defray the fixed charges, amortization costs, and annual cost of operation and maintenance of the sewage system. If the difference between the total annual review derived and the total annual cost is sufficient to justify an increase or decrease in the sewer service charge, the City will adjust the rates as required. The purpose of the annual review is also to maintain a proportional user charge.
(c) Annual Notification. Each user is to be notified at least annually, in conjunction with a regular bill, of the rate and that portion of the sewer service charge which is attributable to OM&R costs of wastewater treatment services.
(d) No Free Services. Every person whose premises are served by said sewage works shall be charged for the service provided. No user shall be granted service without charge.
(e) Methods of Collection and Enforcement. In accordance with this section, monthly charges to users of the wastewater treatment system shall be calculated in accordance with the approved User Charge System. (Ord. 97-9060. Passed 6-9-97.)
USER CHARGE SYSTEM FORMAT
Project Information
Current Population 9060 | Design Flow (MGD)1.89 | I/I (MGD)333,333 |
Design Population 10,600 | Design BOD (lbs/day)2585 | I/I (% of Flow) 17.6 |
Design SS (lbs/day 2695 |
1. Show number of customers (connections) by class.
Determine who all the users are or will be. All residents, businesses, industrial, governmental, and institutional facilities (including not-for-profit or tax-exempt organizations) within the recipient’s jurisdiction are required to connect to the sewer system. Next, group the users into classes based on types and/or activities of the users. Most utilities have a minimum of four user classes: residential, commercial, governmental/institutional, and industrial.
USERS BY CLASS
Total Connections | Residential | Commercial | Industrial | Government | Institutional |
3600 | 3464 | 104 | 4 | 5 | 23 |
3,998 EDU |
2. Provide the total annual billable flow, BOD, and Suspended Solids Loadings by class of users.
Billable flow is generally determined by water meter records. BOD and Suspended Solids (plus any other treatment parameter) should be obtained from the treatment facility superintendent. Extra strength wastewater (higher than normal domestic strength) should be shown separately as indicated below.
TOTAL ANNUAL FLOW AND LOADINGS BY CLASS
Residential | Commercial | Industrial | Government | Institutional | Total | |
Flow (gallons) | 191,879,280 | 9,238,632 | 30,321,664 | 1,895,104 | 3553320 | 236,888,000 |
BOD (pounds) | 230,984 | 11,117 | 36,507 | 2,281 | 4,279 | 285,168 |
SS (pounds) | 345,349 | 16,628 | 545,668 | 3,410 | 6,395 | 426,350 |
3. Provide an itemized listing of all costs for operation, maintenance and replacement (OM&R), categorized by Administrative costs, Treatment costs, Collection System costs, and Equipment Replacement costs, and identified by treatment parameter. Please insure that all operational and maintenance costs are included. All costs not related to operation, maintenance, and equipment replacement must be excluded from this listing of OM&R costs.
OPERATION, MAINTENANCE, AND REPLACEMENT COST (OM&R)
(Projected for First Year of Operation)
Item | Total | Admin. (Fixed) | Flow | BOD | Suspended Solids | Other |
Administrative | ||||||
Salaries | 90,429.00 | |||||
Indirect Salary Costs | 18,000.00 | |||||
Billing | ||||||
Supplies & Postage | ||||||
Other | 5,000.00 | |||||
Category Total | 113,429.00 | 45,371.60 | 34,028.70 | 34,028.70 | ||
Treatment | ||||||
Salaries | 436,650.00 | |||||
Indirect Salary Costs | 238,861.00 | |||||
Supplies | 2,600.00 | |||||
Chemicals | 23,000.00 | |||||
Power | 94,000.00 | |||||
Building Utilities | 27,410.00 | |||||
Maintenance (Bldg. & Grounds) | 10,000.00 | |||||
Transportation Equip. | 12,800.00 | |||||
Insurance | 5,710.00 | |||||
Employee Training | 3,500.00 | |||||
Contractual Services | 26,500.00 | |||||
Misc. | 35,000.00 | |||||
Contingencies 96 debt | 64,000.00 | |||||
Other | 25,000.00 | 402,012.40 | 301,509.30 | 301,509.30 | ||
Category Total | 1,005,031.00 | |||||
Collection | ||||||
Salaries | ||||||
Indirect Salary Cost | ||||||
Sewer Maintenance | ||||||
Other | 8,000.00 | |||||
Category Total | 8,000.00 | |||||
Replacement: sewer | 5,000.00 | 8,700.00 | ||||
WWTP | 24,000.00 | 11,600.00 | 8,700.00 | |||
TOTAL | 29,000.00 | |||||
Total OM&R | 1155460 | 426184 | 346638 | 346638 | ||
4. Please prepare a listing of all equipment involved in the treatment and collection system process. Determine the years of useful life, the cost to buy the item at the end of its useful life and, by dividing the cost to replace by the years of useful life, an annual amount to contribute to the equipment replacement account (line item amount in OM&R budget) is determined. Other methods may be used to determine the annual contribution, but this is the least complex and is quite acceptable.
Items included in this listing must meet the following definition:
“Replacement shall mean expenditures for obtaining and installing equipment, accessories or appurtenances which are necessary during the useful life of the treatment works to maintain the capacity and performance for which such works were designed and constructed.”
Because “replacement” is an OM&R expense and funded through OM&R rates, any items that expand capacity, improve functional performance, or extend useful life beyond initial design parameters are considered capital costs and must not be included in “Equipment Replacement.”
REPLACEMENT COSTS
Item | Cost to Replace | Estimated Useful Life (years) | Cost Per Year To Replace |
SEWER | 5,000 | ||
WWTP | 24,000.00 | ||
TOTAL | 29,000.00 |
5. Please separate the OM&R costs by classes of users.
OM&R COSTS BY CLASS
Residential | Commercial | Industrial | Government | Institutional | Total |
935922.6 | 45062.94 | 147898.88 | 9243.68 | 17331.9 | 1,155,460.00 |
6. Please provide a determination of annual revenue (for OM&R only.)
TOTAL ANNUAL REVENUE (OM&R)
Total OM&R Costs | Total Flow | Cost Per 1000 gals. | OM&R Rate | Revenue | Extra Strength Revenue | Total Revenue |
1155460 | 236888 | 4.8777 | 4.88 | 1155468.54 |
7. Please determine OM&R revenues by class of users. Revenues for each class of users must exceed the costs for each class of users.
TOTAL ANNUAL REVENUE BY CLASS
Residential | Commercial | Industrial | Government | Institutional | Total |
936369.52 | 45081.44 | 147,966.45 | 9247.6 | 17338.64 | 1,156,003.68 |
SUMMARY OF RATE CALCULATIONS
Debt Service Rates:
Debt | Annual Amount | No. of Users | Monthly Rate |
Previous Debt Payment | $617,170.00 | 39983998 | $13.00 |
New Debt Payment | $47,976.00 | $1.00 |
Capital Improvements:
Annual Amount | Annual Billable Flow | Cost per 1000 Gal. | |
Capital Improvement Cost | $28,426.56 | 236888. (Thous. Gals) | $0.12 per 1000 gals |
Operation, Maintenance, & Replacement (OM&R):
Annual Amount | Billable Flow in Thous. Gals | Unit Rate |
1155468.54 | 236888 | $4.88 per 1000 gals. |
Extra Strength Surcharge:
Annual LBS Treated | Annual Cost | Rate per LB | |
BOD | 285168 | $346,638.00 | $1.22 |
SS | 426350 | $346,638.00 | $.82 |