PROJ00001

• Contract/PO #: C153168
• Contractor Name: Delta, City of
• Contract Type: Loan
• Water District: 40
• County: Delta
• Bill Number: SB 77-35
• Loan Projects - Doc Type: Feasibility Study

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System Costs

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A summary of actual revenue and expenditures of the operating
fund of the water department in the City of Delta is shown in Table
XI-3. An inquiry with Calhoun and Associates, City Auditors, revealed
that the annual audit for 1974 will not be available for quite some
time, and the City's financial records for 1974 are not sufficiently
itemized at this time to allow the data to be easily extracted.
Therefore, the figures for 1974 are not included in the table. A
graphical comparison of actual revenue and expenditures for the years
1971, 1972, and 1973 is also shown in Figure 111-16. The pie charts
show the relative percent each category is of the total revenue
and expenditures in the operating fund.

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The water department's share of administrative costs are
included as an expense in the annual audits since they are managed
under the City's general fund. In addition, during the years prior to
1972, revenue from the water department was used to subsidize
operations of the general fund. Debt service on two outstanding bond
issues being retired from revenue from the water department is
included as an expenditure. On this basis, more funds are generally
absorbed by operations than provided. The retained earnings of the
water department as of December 31, 1973, was $15,246.00. This amount
does not include $76,032.00 of Federal revenue sharing money that
was spent on new water system construction in that year.

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For further
tures, the reader
Program, of this
available.

details relating
is advised to
report and the

to actual revenue and expendi-
refer to Section XI, Financial
annual audits as they become

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As best can be determined from examination of the official
annual audits, the breakdown of average costs per thousand gallons
filtered for operation of each element of the system is as shown in
Table 111-6. The various cost divisions were established by the
accounting system used by the City of Delta in keeping track of water
department expenses. A detailed cost breakdown by source, treatment,
transmission and distribution, etc., was not available for the years
1969 and 1970. The total average unit cost per thousand gallons shown
in the table does not include subsidies to the general fund, debt
service requirements, or expenditures which may have been covered
by Federal revenue sharing funds. The table shows the total unit cost
to be quite low but increasing steadily. By 1975, the average cost
per 1,000 gallons of operating and maintaining the present system
could be as high as $0.30 if the past trends continue.

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Figure 111-17 is a graph of the increasing trend in average
operation and maintenance costs per 1,000 gallons processed.

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III - 30

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