APPENDIX A WASTEWATER USER CHARGE SYSTEM

   (A)   The Wastewater User Charge System (UCS) strives to ensure an equal distribution of collection and treatment costs to the wastewater users. All customers with normal strength sewage, whether residential or commercial, will receive the same minimum bill and will be charged the same cost per equal volume of flow treated.

   (B)   The UCS will combine all costs to operate, maintain and repair the wastewater transportation and treatment system. Fixed cost (debt service) will also be included in the UCS.

      (1)   The wastewater user rate for Marion will be based on a percentage of the water user rate, sufficient to cover the costs included in division (B) above.

      (2)   The cost must be paid equally by each customer based on their actual water use.

(Ord. 04-11, passed 6-21-04)

APPENDIX B DEBT SERVICE

   (A)   The wastewater system improvements will be funded (in whole or in part) by a loan from the SRF at an anticipated 1% interest rate and a 20-year payback period. An administrative fee of .2% of the unpaid loan balance is required.

 

Proposed loan	$618,137
Interest	1%
Annual debt service (20 years @ 2.3%	$34,177
Administrative fee (.002 of loan amount)	$1,236
Existing annual bond debt	$69,557
Required total annual revenue	$379,927

 

   (B)   The debt service is considered a fixed cost, independent of the amount of wastewater treated. The debt service for the SRF may need to be adjusted when a final amortization schedule has been prepared.

   Annual sewer cost    =   $379,927   =   65.3%   =   75.1%

   Water revenues   =   $582,577       .87%

   % of sewer users to water rates   =

   75.1% X water rates = sewer rates

 

		Water	Sewer
Minimum rate for first 1,500 gallons		14.12 (75.1)	10.61
Next	3,500 gallons	5.20	3.90
Next	10,000 gallons	4.16	3.12
Next	10,000 gallons	3.47	2.60
Next	25,000 gallons	2.78	2.09

 

 

	OM&R Rate	Debt Service	Total Rate	Minimum Bill
0 - 1,500 gal.	7.71	2.90	10.61	10.61

 

APPENDIX C WASTEWATER OPERATING BUDGET

Revenues	Current FY 03-04	Proposed FY 04-05
User service charge	$337,462	$379,927
Tap-on/impact fees
Other
Total revenues:	$337, 462	$379,927
Expenses
OM&R expenses
G & A	$19,744	$20,447
Treatment plant	$150,672	$160,406
Equipment replacement fund	$14,417	$12,000
System maintenance	$105,425	$111,517
Subtotal OM&R expenses	$290,258	$304,370
Debt service expenses:
Existing debt	$71,226	$69,557
Principal and interest payments (new debt)	$0	$6,000
Other
Subtotal debt service expenses:	$71,226	$75,557
Total expenses:	$361,484	$379,927
Net income/loss:	($24,022)	$0

 

(Ord. 04-11, passed 6-21-04)