05-12-1976 Council Agenda - Laserfiche WebLink

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Mr. Joseph Chlebek City of Little Canada April 29, 1976 Page Two The actual sewage flow volume for the entire Metropolitan Disposal System exceeded the estimated flow resulting in more use of the system; thereby, the sewer service charge was increased by $36,845 as indicated in Schedule No. 2 of the 1975 Finan- cial Report Summary of Revenues and Expenditures. As a result of this increase, the reserve capacity charge requirement, as collected by the Service Availability Charge (SAC), was reduced by $36,845. However, it was still necessary to transfer $355,147 to the SAC fund due to insufficient SAC revenue in 1975. A balance of $69,296.65 remains in the SAC fund, as indicated in Schedule No. 20 of the 1975 Financial Report. The operations cost summary showed that actual treatment works costs were less than that budgeted by $364,508 while actual interceptor costs exceeded the Budget amount by $281,343. The interceptor system costs exceeded the budget primarily because of the major repair costs of the Battle Creek Interceptor in Service Area No. 1 and additional operational costs in Service Area No. 4, resulting from the extremely wet spring weather. Schedule #3 of the Financial report indicates in the summary statement of expenditures that the total expenditures were $61,780 less than that budgeted. The total sewage flow from your community was determined to be 257 million gallons in 1975 and is 62 million gallons greater than that total in the 1975 Estimated Cost Allocation. As a result, the final cost allocation for your community results in a deficit of $17,803.11 for the 1975 fiscal year. This amount will be added to your 1977 Cost Allocation. It is our intent to reduce, as much as possible, the differences between the esti- mated actual sewage flow volumes in future cost allocations by obtaining more accur- ate information in updated comprehensive sewer plans and the annual inventory of sewer use data. Your assistance is important in keeping us informed in this regard. This is especially true due to the fact that flow volumes are affected greatly by the amount of precipitation we receive in each year. This factor is one which we cannot predict, and flow estimates will always vary. We are pleased to have this opportunity to explain the cost allocation program to you and welcome any questions you have in this regard. Questions regarding the 1975 Financial Report should be directed to Richard Berg, Comptroller, and ques- tions related to sewage flow determinations should be directed to Ray Odde, Staff Engineer. Your cooperation is greatly appreciated. Very truly yours, Richard J.�pugherty Chief Administrator RJD:RLB:jm Enclosures cc: Anthony C. Gnerre, NWCC Bernard J. Harrington, NWCC Richard L. Berg, MWCC Raymond A. Odde, MCC