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Utility Committee Agenda and Packet 2019 04 12
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Utility Committee Agenda and Packet 2019 04 12
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UCPKT 2019 04 12
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• Revenue Requirements: <br />Revenues were derived from actual expenses and taken directly from the financial <br />records for the given year. <br />• Functional Categories: <br />Expenses were split between Operation and Maintenance (O&M) accounts and Capital <br />Improvements Projects (CIP) accounts. CIP accounts were assigned directly to each <br />category. O&M accounts were allocated based on percentages. These percentages are <br />highlighted in the table below. Central Charges and Water Utility Engineering were <br />developed as a composite of the total of the other expenses. <br />Expenses by Sub Account <br />(City Budget) <br />Category Allocations <br />Utility Billing <br />50% Billing, 50% Meters <br />Water Plant Operations <br />100% Treatment <br />Raw Water Operations <br />100% Supply <br />Distribution <br />50% Transmission, 50% Distribution <br />WTP Building Maintenance <br />100% Treatment <br />Central Charges <br />19% Supply, 58% Treatment, 9% Transmission, 9% Distribution, 2.5% <br />Billing, 2.5% Meters <br />Water Utility Engineering <br />Same as Central Charges <br />• Cost Components: <br />Maintaining the separation between O&M and CIP, each Category was applied to a <br />distinct component. O&M were distributed as follows: <br />Components <br />O&M Allocation <br />Base Demands <br />100% Supply, 50% Treatment, 50% Transmission <br />Peak Day Demands <br />50% Treatment, 50% Transmission <br />Peak Hour Demands <br />N/A <br />Distribution <br />100% Distribution <br />Billing <br />100% Billing <br />Meters <br />100% Meters (meter capacity & meter costs) <br />CIP categories utilized the same allocation as the O&M with the inclusion of a storage <br />component. <br />Components <br />CIP Allocation <br />Base Demands <br />100% Supply, 50% Treatment, 50% Transmission, 25% Storage <br />Peak Day Demands <br />50% Treatment, 50% Transmission, 25% Storage <br />Peak Hour Demands <br />50% Storage <br />Distribution <br />100% Distribution <br />Billing <br />100% Billing <br />Meters <br />100% Meters (meter capacity & meter costs) <br />The conclusion of this step results in a unit cost of service per component. Table WCOS- <br />5, from the 2014 Rate Study was reconstructed with 2017 data and presented below. <br />ig <br />11 <br />
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