3. Approving Evergreen Sewer Rates for Fiscal Year 2004-2005City of Kalispell
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Post Office Box 1997 - Kalispell, Montaxia 59903--1997 - Teiephone (.406)758-7700 Fax (406)758-7758
DATE: August 10, 2004
TO: Chris Kukulski, City Manager
Mayor Kennedy & City Council Members
FROM: Rick Wills, City Accountant
RE Evergreen Sewer Rate for Fiscal Year 2004/2005
Please find attached several sheets of information. This compilation is for the Wastewater
Treatment Plant 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 2004. Our operating expenses decreased by less than 1% from the
prior year. FY2003 expenses are included for comparison purposes only. Electricity expense and
natural gas expense increased 5% and 59% respectively. Equipment maintenance expense
decreased by almost $47,000. FYI: The $16,000 which the City spent on the plant expansion/rate
study/facility plan is not shared with Evergreen as expansion of the plant does not impact their
contract with the City. Their capacity remains unchanged.
Evergreen Sewer District's FY2005 rate is based on our operational expenses for FY2004
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 up less than 1%, while the
total plant usage is up almost 13%. As a result, Evergreen's share of the total Tows has
decreased from 18.75% to 16.78%. This is not a percent of capacity only a percent of flows
treated at the plant. The percent of usage (16.78%) 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
$1.3 7 per thousand and is the new rate for FY2005. The district pays 22% of the debt service
costs regardless of the usage. The Evergreen rate is down $.1 H per thousand gallons from last
year and debt service declines by $11.01 per month.
The amended Evergreen 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
$22,041,23 in interest. The equipment replacement schedule was adjusted for the items Iisted on
the sheet f€or the reconciliation of the reserve account. Evergreens total equity in the replacement
reserve account is $519,892.76
2004
WWTP ... FISCAL YEAR 2004
Wages/ftca/medt/we/unemp.
Overtime
Health Ins.
PERD
Office Supplies
Small office equip
Computer supplies
Computer Equip
Safety equip
Lab supplies
Janitorial Supplies
Alum
Chemicals
Other supplies
Gas & Oil
Consumable tools
Postage & freight
Memberships & dues
Licenses & fees
Electricity
Water
Natural Gas
phone lease/charges/pagers/alarms
Lab Services
Auditing
Contract Serv-Glacier Gold
Contract Serv-Gravity Thickener
Maint. & Repair
Equipment Maintenance
Consultants
Building maint.
School & Training
Medical services/drug testing
Rental Equipment
Property & Liability Ins.
Central Garage
Admire. Transfer
Data Processing
Total Operating Expenses
Replacement
Debt service / Evergreen 22%
Evergreen ELQAs
Total Kalispell Flows
$ 251,429.20
$ 10,276,86
$ 50,221.49
$ 15,764.37
$ 1,118.37
$ 449.99
$ 1,381.84
$ 3,836.77
$ 2,752,11
$ 9,731.68
$ 9090
$ 4,307.48
$ 8,030.71
$ 2,440.09
$ 6,669.52
$ 1,097.19
$ 434.36
$ 644.00
$ 4,896.00
$ 256,278.78
$ 4,212.24
$ 39,122.14
$ 2,901.91
$ 6,126.49
$ 2,160.00
$ 110,891.39
$ 9,194.39
$ 17,951.40
$ 45,795.51
$ 1,537.50
$ 1,726.41
$ 7,779.35
$ 568.00
$ 210A0
$ 27,306.49
$ 4,500.00
$ 66,715.00
$ 3,806.00
984,356.33
x
$ 310,354,07 x
Annual cost to Evergreen
$ 116,580.39 annual
15$,285,94
943,257,300
Prepared: 8/9/04
City Finance Office
0.1678 $ 165,182.42 $ 1.04 per thousand gallons
0.1678 $ 52,079.76 $ 0.33 per thousand gallons
16.78%
$ 217,262.18 $ 1.37 per thousand gallons
$ 9,715.03 per month
2003
WWTP ... FISCAL YEAR 2003 Prepared: 7/24/03
City Finance Office
Wages/fica/medt/wc/unemp.
$
248,647.62
Overtime
$
10,383.65
Health Ins.
$
47,864.10
PERK
$
15,688.23
Office Supplies
$
1,310.09
Small office equip
$
792.39
Computer supplies
$
803.85
Computer Equip
$
2,435.43
Safety equip
$
1,218.05
Lab supplies
$
4,264.99
Janitorial Supplies
$
35.40
Alum
$
2,543.49
Chemicals
$
6,179.88
Other supplies
$
3329.94
Gas & Oil
$
4:272.05
Consumable tools
$
846.40
Postage & freight
$
3,644.60
Memberships & dues
$
402.00
Licenses & fees
$
8,755.00
Electricity
$
244,349.13
Water
$
3,320.56
Natural Gas
$
24,645.79
phone lease/charges/pagers/alarms
$
3,068.10
Lab Services
$
4,273.82
Auditing
$
1,800.00
Contract Serv-Glacier Gold
$
107,108.20
Contract Serv_Gravity Thickener
.$,
7 1Rfi 2h
Maint. & Repair
$
15,127.19
Equipment Maintenance
$
92,450.97
Consultants
$
1,500.00
Building maint.
$
19,392.84
School & Training
$
4,387.33
Medical services/drug testing
$
247.00
Rental Equipment
$
100.00
Property & Liability Ins.
$
27,660.47
Central Garage
$
4,000,00
Ad in. Transfer
$
67,623,00
Data Processing
$
3,851.00
Total Operating .Expenses
$
990,702,92 x
0.187485 $ 185,741.55 $ 1.18 per thousand gallons
Replacement
$
310,294.07 x
0.187485 $ 58,175.36 $ 0.37 per thousand gallons
Annual
cost to Evergreen
$ 243,916.92 $ 1.55 per thousand gallons
Debt service / Evergreen 22%
$
116,712.42 annual
$ 9,726.04 per month
Evergeen Flows
156,886300
18.7485%
Total Kalispell Flows
836,795,600
flows 2004
Evergreen Sewer District Flow Data
City of Kalispell
—Flow —Data
Outflow Meter Reading
Evergreen's Usage
Inflow� Meter Reading_
VWTP Inflow for
at the Evergreen
for the
at the WWTP
the Preceeding2giod
Date
Main Lift Station
Preceedinq Period-
7/112003
445,456,600
13,513,400
2,025,142,000
75,894,000
8/11/2003
459,401,200
13,944,600
2,103,801,000
78,659,000
9/212003
473,663,900
14,262,700
2,187,053,400
83,252,400
10/1/2003
484,838,000
11,174,100
2,258,447,000
71,393,600
11/3/2003
496,208,200
11,370,200
2,332,418,700
73,971,700
12/1/2003
56-5,7-33,900
9,525,700
2,395,029,500
62,610,800
1
failed meter
13,631,74—
—
—2,468,462,500
73,433,000
2/2/2004
5,761,100
14,070,700
2,543,187,000
74,724,500
311/2004
--411/2004
18,356,800
12,595,700
2,613,574,500
70,387,500
32,095,700
13,738,900 —
—
2,703,719,000
90,144,500
513/2004
failed meter
14,580,500
2,792,032,100
88,313,100
611/2004
failed meter
14,998,900
2,871,309,600
79,277,500
711/2004
161,925,000
14,391,900
2,068,399,300
97,089,700
Evergreen's Annual % of total flows
16.78%
FYI
% change
Evergreen 2003
166,886,300
0.89%
City plant 2003
836,796,600
12.72%
I
-
W WTP EQUIPMENT REPLACEMENT ACCOUNT -CITY & EVERGREEN FUNDS
Cash
YEAREND
%FLOWS
EVERGREEN's
DATE
ADDITIONS
(SPENT)
BALANCE
EQUITY
12/31/1994
$150,000,00
$150,000.00
8,86766%
$26,085.00
12/31/1995
$300,000.00
$450,000.00
16.84724%
$64,350,00
613011996
$150,000.00
($91,113.77)
$508,886,23
17.39000%
$14,103.25
6/30/1997
$333,387,13
($5,190.98)
$837,082.38
21.45%
$70,398.07
6/30/1998
$354,574.38
$
(66,485,84)
$1,125,170.92
23.95%
$68,997.21
6/30/1999
$370,106.34
$
(405,397.00)
$1,089,880.26
24.66%
($8,702.68)
6/30/2000
$377,442,66
$
(19,802,49)
$1,447,520.43
23.31%
$83,365.92
6/30/2001
$413,573.77
$
(11,232.36)
$1,849,861.84
20.82%
$83,767.48
6/30/2002
$367,774.86
$
(85,324.27)
$2,132,312.43
16.94%
$47,847.13
6/30/2003
$343,745.53
$
(184,265.77)
$2,291,792.19
18.75%
$29,902.46
6/30/2004
$331,060.19
$
(93,998.72)
$2,528,853,66
1638%
$39,778.91
subtotal
$519,892.76
Evergreen's Total Equity as
of 6/30/04
$519.892.76
Additions include:
$ 309,018.96 from operating revenue
$ 22,041.23 interest earnings
$ 331,060.19
Funds Spent:
HVAC MAIN BUILDING
$
12,950.00
BIOCELL DISSOLVED OXYGEN & ACTUATORS
$
25,418.52
PRESSING AREA CONTROL UNITS
$
16,546.00
MAIN BOILER-DIGESTF,RFACILITY
$
29,755,25
PLANT MOWER
$
4,000.00
LABORATORY EQUIPMENT
$
5,328.95
$
93,998.72