F. Adjustment of Evergreen Sewer Rates0MI
Incorporated 1892
Telephone (406) 758-7700
FAX (406) 758-7758
Post office Box 1997
Kalispell, MT
Zap 59W3-1997
DATE August 6, 1997
TO: Clarence Krepps, City Manager
Mayor Rauthe & City Council members
From: Amy Robertson, Finance Director
TV —
RE: Evergreen Sewer rate for Fiscal Year 1998.
Please find attached several sheets of information. The first sheet is a compilation of the
expenses of the WWTP for the fiscal year 1997. Our operating expenses for the year were
$59,000 under our budget projection due primarily to not having completed the digester
cleaning. The digester cleaning is a $50,000 carryover in the FY98 budget. Digester cleaning
is a maintenance item and not capital outlay. This function needs to be performed every 10
years. The only budget line item with a significant budget shortage, $15,000, was electricity.
This compilation is for the Wastewater Treatment Plant operations only and does not include
billing costs, bad debt expense, depreciation or sanitary sewer operations.
Douglas Rauthe
Mayor
Clarence W. Krepps
City Manager
City council
Members:
Gary W. Nystul
Ward I
Cliff Collins
Ward I
Norbert F. Donahue
Ward 11
Date Haarr
Ward 11
Jim Atkinson
Ward Ill
John Graves
Ward III
Pamela B. Kennedy
Ward IV
M. Duane Larson
Ward IV
Evergreen Sewer District's FY98 rate is based on our operational expenses for FY97 prorated at the
percent of usage based on meter readings at the lift station and the plant. A sheet is attached with the
meter readings and usage. Evergreen's share of total flows was 21.45%. This is not a percent of
capacity only a percent of usage. The same percentage is applied to the replacement account for their
share of the cost of funding this reserve per the agreement. The percent of usage (21.45%) is applied to
our expenses and replacement amounts to arrive at a total cost for treating Evergreen's sewage. This
cost is then divided by their gallons of usage to arrive at the rate per thousand. This calculates to $1.36
per thousand and is the new rate for FY98. No adjustment is made for FY97 which was billed at $1.31.
The district pays 22% of our debt service costs regardless of the usage. The new rate is up $ .05 per
thousand from last year.
The amended Evergreen agreement calls for Evergreen to share in the equity of the replacement reserve
account. Therefore, I've included a reconciliation of the reserve account. We only replaced two small
items in FY97, listed there. We had budgeted $150,000 in capital improvements to the roof area of the
digester. This activity is postponed until after the digester cleaning. The FY98 budget anticipates
replacing several items listed on page 185 of the preliminary budget and totaling $246,000.
I thought it was interesting to look at the fiscal 1996 compilation so it is included here. You will note
that the difference in operating costs was less than $2,000. You will also see that Evergreen's usage is up
but the Plant's total usage was down. This accounts for their increased percent share of the usage. I also
alculated an infiltration rate based on the usage billed to our customers, the difference being the
infiltration amount. There is a significant drop in the amount of sewage being treated and the amount
billed as compared to FY96. That is good news.
WWTP... FISCAL YEAR 1997
Wages/fica/medt/wc/unemp.
Overtime
Health Ins.
PERD
Office Supplies
Small office equip
Computer supplies
Safety equip
Lab supplies
Janitorial Supplies
Alum
Chemicals
Other supplies
Gas & Oil
Consumable tools
Postage & freight
Licenses & fees
Dues
Electricity
Water
Natural Gas
Telephone
,.. Lab Service
Auditing
Contract Serv-Glacier Gold
Consultants -NW automation
Training materials
Equip maint
Building maint.
Radio
School & Travel
Medical services
Prop & Liab. Ins.
Central Garage
Admin. Transfer
Data
Total Operating Expenses
Replacement
Debt service / Evergreen 22%
Evergreen Flows
Total Kalispell Flows
$ 195,131.35
$ 14.510.39
$ 28,328.71
$ 13.082.63
$ 488.85
$ 200.40
Bi
$ 249.98
E
$ 1,158.40
T
$ 3,854.46
$ 10.75
$ 4,874.11
$ 15,892.29
1
$ 3,169.49
$ 5.531.63
1
$ 5,300.86
$ 458.28
$ 4,539.00
$ 235.00
$ 164,716.20
$ 1,686.60
$ 26,663.19
$ 3,096,35
$ 3.760.64
$ 1,666.62
$ 101,754.42
$ 3,168.30
$ 316.75
$ 49,536.45
$ 1,611.58
$ 89.00
$ 1,609.79
$ 142.00
$ 24,591.94
$ 5,000.00
$ 76,162.00
$ 4,477.81
$ 767,066.22 x
0.2145 $
$ 300,000.00 x 0.2145 $
Annual cost to Evergreen
$ 124,824.26 annual
168,092,700 21.45%
783,512.000
tied/metered
vergreen use
otal gallons billed
WWTP gallons
nfiltration gallons
filtration rate
gallons
552,004,000
168,092,700
720,096,700
783,512,000
63.415,300
8.09%
Prepared: 8/6/97
Amy Robertson
Finance Director
164,564.46 $ 0.98 per thousand gallons
64,361.25 $ 0.38 per thousand gallons
$ 228,925.71 $ 1.36 per thousand gallons
$ 10,402.02 per month
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CITY OF KALISPELL AND EVERGREEN SEWER DISTRICT - REPLACEMENT FUNDS
l�
12/31 /94
12/31/95
6/30/%
6/30/97
Cash
YEAREND
ADDITIONS
(SPENT) BALANCE
$150,000.00
$150,000.00
$300,000.00
$450,000.00
$150,000.00
($91,113.77) $508,886.23
$333,387.13
% FLOWS EVERGREEN's
EQUITY
8.86766%
$13,301.49
16.84724%
$50,541.73
17.39000%
$10,240.32
subtotal
$74,083.53
($5,190.98) 5837.082.38 21.45% $70,398.07
Evergreen's Total Equity as of 6/30/97 $144.481.61
Additions include:
$ 300,000.00 from operating revenue
$ 33,387.13 interest earnings
Spent
Vendor
ISCO INC.
HPC SCI
Use
Effluent Sampler
Dessicator Cabinet
Amount
$ 3,875.00
$ 1,315.98
$ 5,190.98
Replacmt. xls
WASTE RWATER TREATMENT PLANT -FISCAL 1996 — rvr Czt.A/0q,-"Sov1 /.1Gct�a
WWTP.. July 1, 1995-June 30, 1996
Actual costs
WWTP
EVERGREEN
Wages/fica/medt/wc/unemp.
$ 199,065.40
Gallons
Gallons
Overtime
$ 16,048.56
62,886,000
11,228,200
Health Ins.
$ 30,068.07
60,306,000
12,414,500
PERD
$ 12,723.03
51,762,000
10,733,800
Office Supplies
$ 860.10
58,779,000
12,756,600
Small office equip
$ 200.00
58,786,000
11,613,400
Computer supplies
$ 491.56
57,420,000
11,435,900
Safety equip
$ 1,575.56
62,855,000
13,825,100
Lab supplies
$ 4,357.14
77,303,000
12,610,000
Janitorial Supplies
$ 101.68
73,241,000
12,790,100
Alum
$ 7,171.98
85,150,000
12,677,200
Chemicals
$ 16,259.77
85,620,000
13,088,800
Other supplies
$ 3,059.26
79,625,000
15,656,000
Gas & Oil
$ 6,737.00
813,733,000
150,829,600
Consumable tools
$ 3,015.29
Postage & freight
$ 691.06
Licenses & fees
$ 4,109.00
Dues
$ 210.00
Billed/metered
543,243,000
Electricity
$ 144,315.77
Evergreen usag
150,829 600
Water
$ 1,868.42
Total billed
694,072,600
Natural Gas
$ 28,887.76
Telephone/alarms
$ 2,945.93
Infiltration
119,660,400
Lab Service
$ 3,874.41
Auditing
$ 1,666.56
Infiltration rate
17.24%
Contract Serv-Glacier Gold
$ 100,369.13
Training materials
$ 273.00
Equip maint.
$ 47,406.74
Building maint.
$ 2,279.67
Radio maint.
$ 65.00
School & Travel
$ 1,585.46
Equip Rental
$ 150.94
Prop & Liab. his.
$ 27,525.57
Central Garage
$ 10,000.00
Administration Transfer
$ 81,206.00
Data processing transfer
$ 4,022.50
subtotal
$ 765,087.32 x 18.54%
$ 141,813.06 $ 0.94 per thousand gallons
Replacement
subtotal
Debt service Evergreen
Annual Cost to Evergreen
Evergreen Flows
City of Kalispell Flows
$ 300,000.00 x 18.54% $ 55,606.54 $ 0.37 per thousand gallons
$ 125,293.20 22%
15.0829,600
813,733,000
$ 1.31 per thousand gallons
$ 10,441.10 per month
18.54%
7/24/96