3. Evergreen Sewer District Rate for FY 2012-2013City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997
Telephone (406) 758-7000 Fax - (406) 758-7758
REPORT TO: Doug Russell, City Manager�2—
FROM: Rick Wills, Finance Director
SUBJECT: Evergreen Sewer Rate for Fiscal Year 2012/2013
MEETING DATE: September 17, 2012
BACKGROUND: Please find attached several sheets of information. This compilation is for the City of
Kalispell Wastewater Treatment Plant (WWTP) operations only and does not include the billing costs, bad debt
expense, depreciation or sanitary sewer expenses. The first sheet is a compilation of the expenses of the WWTP
for the fiscal year 2012. The WWTP operating expenses decreased about 3% from the prior year. FY2011
expenses are included for comparison.
Evergreen Sewer District's FY2013 rate is based on our operational expenses for FY2012 prorated at the
percent of usage based on meter readings at the lift station and the plant. A page is attached with the meter
readings and usage. Evergreen's usage is down 6.94%, while the total plant usage is down 13.47%. As a result,
Evergreen's share of the total flows has increased from 16.12% to 17.34%. This is not a percent of capacity
only a percent of flows treated at the plant. The percent of usage (17.34%) is applied to our operating expenses
and replacement fund requirements to arrive at the total cost for treating Evergreen's sewage. The cost is then
divided by their gallons of usage to arrive at the rate per thousand. This calculates to $1.67 (up $0.19 from
FY2012) per thousand and is the new rate for FY2013. Due to the expansion of the plant, beginning in FYI
the district pays 12% of the debt service costs regardless of the usage. The Evergreen debt service expense for
FYI is $10,973.38 per month, down from $12,467.35 for FYI 2.
The current agreement calls for Evergreen to share in the equity of the WWTP Replacement Reserve account.
A reconciliation of the reserve account is included. The items for which replacement funds were used are listed
on the reconciliation page. The account earned $9,301.36 in interest. The equipment replacement schedule has
been adjusted and updated for the reconciliation of the reserve account. Evergreens total equity in the
replacement reserve account is $246,981.28.
RECOMMENDATION: It is recommended that the City Council move to adopt $1.67 per thousand
gallons and $10,973.38 per month as the FY2013 Evergreen Sewer District's sewage treatment rate and
d service charge.
Rick Wills
Finance Director
Report compiled: August 29, 2012
2012
WWTP... FISCAL YEAR 2012
Prepared: 8/28/12
City Finance Office
Wages/fica/medt/wc/unemp.
$
440,701.00
Overtime
$
18,522.00
Health Ins.
$
74,964.00
PERD
$
28,673.00
Supplies & equipment
$
13,454.00
Non -capital equipment
$
1,696.00
Lab supplies
$
7,940.00
Alum
$
3,283.00
Chemicals
$
9,717.00
Gas & Oil
$
14,731.00
Postage & freight
$
298.00
Licenses & fees
$
7,325.00
Electricity
$
158,225.00
Water
$
5,603.00
Natural Gas
$
50,405.00
phone lease/charges/pagers/alarms
$
4,851.00
Auditing
$
2,750.00
Contract Serv-Glacier Gold
$
114,009.00
Other Contract Sery
$
42,560.00
Consultants
$
5,820.00
Misc. Maintenance
$
20,543.00
School & Training
$
6,235.00
Medical services/drug testing
$
196.00
Property & Liability Ins.
$
41,680.00
Central Garage
$
4,000.00
Admin. Transfer
$
122,598.00
Data Processing
$
18,705.00
Total Operating Expenses
$
1,219,484.00 x
0.1734 $ 211,408.19 $ 1.248 per thousand gallons
Replacement
$
411,598.48 x
0.1734 $ 71,354.19 $ 0.421 per thousand gallons
Annual cost to Evergreen
$ 282,762.37 $ 1.67 per thousand gallons
Debt service / Evergreen 12%
$
131,680.56 annual
$ 10,973.38 per month
Evergreen Flows
169,423,477
17.34%
Total Kalispell Flows
977,300,000
2011
WWTP... FISCAL YEAR 2011
Prepared: 7/25/11
City Finance Office
Wages/fica/medt/wc/unemp.
$
451,559.00
Overtime
$
20,292.00
Health Ins.
$
73,462.00
PERD
$
30,203.00
Supplies & equipment
$
13,461.00
Non -capital equipment
$
7,920.00
Lab supplies
$
7,347.00
Alum
$
15,368.00
Chemicals
$
14,659.00
Gas & Oil
$
10,527.00
Postage & freight
$
772.00
Licenses & fees
$
6,646.00
Electricity
$
159,496.00
Water
$
5,475.00
Natural Gas
$
52,717.00
phone lease/charges/pagers/alarms
$
4,292.00
Auditing
$
2,750.00
Contract Serv-Glacier Gold
$
106,814.00
Other Contract Sery
$
49,047.00
Consultants
$
19,609.00
Misc. Maintenance
$
18,145.00
School & Training
$
10,339.00
Medical services/drug testing
$
806.00
Property & Liability Ins.
$
51,379.00
Central Garage
$
3,500.00
Admin. Transfer
$
105,424.00
Data Processing
$
18,705.00
Total Operating Expenses
$
1,260,714.00 x
0.1612 $ 203,237.07
$ 1.116 per thousand gallons
Replacement
$
411,598.48 x
0.1612 $ 66,352.93
$ 0.364 per thousand gallons
Annual
cost to Evergreen
$ 269,590.01
$ 1.48 per thousand gallons
Debt service / Evergreen 12%
$
149,608.20 annual
$ 12,467.35
per month
Evergreen Flows
182,065,477
16.12%
Total Kalispell Flows
1,129,383,000
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