07-26-2023 Council Packet - Laserfiche WebLink

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Page | 14 Cost of Services Asset Value and Depreciation Allocation Summary The allocation of operations and maintenance expenses generally followed the same logic as the 2017 and 2019 studies. This is based on our understanding that the operations of SPRWS have not changed materially from 2019. The allocation of operating and maintenance expenses to base, maximum day and maximum hour is shown in the table on the following page. The allocation of some expenses was done based on the 2017 and 2019 study including: • 49.50% of administration costs with the exception of safety and security were allocated based on a time allocation of staff in that function • 66.7% of safety and security costs were allocated based on a time allocation of staff in that function • Meter expenses were allocated based on an allocation of staff time and resources • 21.9% of Engineering Maps and Records costs were allocated based on a time allocation of staff in that function • 49.5% of GA employee fringe cost were allocated because they are part of administration In addition, engineering costs related to homeowner lead replacement loans and land sales were not allocated as they do not benefit wholesale customers. The operations and maintenance total expense allocations are shown on the following pages. Description Roseville Little Canada U of M Total Plant Value (Present Worth Allocation)24,824,524$ 5,114,685$ 4,794,985$ 34,734,193$ Return on Investment (5%)1,241,226$ 255,734$ 239,749$ 1,736,710$ Current Depreciation 557,024$ 116,118$ 87,746$ 760,887$ Total Capital Cost 1,798,250$ 371,852$ 327,495$ 2,497,597$