C153773 Feasibility Study - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I Operating Expenses The past three year (1993, 94, 95) actual operating expenses have been taken from audit reports prepared by Vern Schooneveld and Co., Inc, 1996 values were provided by Sharon Blackstock, Town Clerk, based on costs through October and staff projections through the end of the year, The pro forma average year expenses have been estimated based on recent experience, together with input from staff and a general knowledge of the system, Distribution system replacements, when needed, have been left under the Repair and Maintenance line item; new improvements, including associated engineering and legal costs, are shown as a capital item under System Improvements, Capital Program As summarized in Section II, the estimated budget for the new raw water improvements is $490,000. In addition, the Town is committed to rehabilitate and calibrate all customer meters so that they can practically be used for billing, The estimated cost for this work is about $20,000. A summary of the 1997 capital project follows: Total $490,000 20.000 $510,000 Budget for raw water improvements Budget for meter upgrades Dollar contribution by Morrison CWCB loan $143,000 $367,000 Level debt service for the $367,000, 30-year, 5% loan would be $23,874/year. Service Charges Required service charge income is derived by deducting all other income sources from the average annual budget requirement. As shown in the pro forma column of Table III-A, this results in a design service charge income of $136,000, based on 1996 dollar value - or a rate increase of about 5%. The rate level was determined with the goal of producing approximately $25,000 net operating reserve per year to fund miscellaneous replacements and betterments, Such increase has been considered reasonable by the Town Board as a matter of determining project feasibility. 70-OBO.039P:REPORT III-2