The URL can be used to link to this page

Financial Feasibility Report Water & Sewer Improvements I I I I I I I I I I I I I I I I I I I Financial Feasibility Report Combined Water and Sewage System Improvements for City of Salina, Kansas ~ FmST SECURITIES CoMPANY SCHWEITER BLDG. ~/ P.o. BOX 1321 ~ WICHITA, KB 67201 OF KANSAS INCORPORATED I I I I I I I I I I I I I I I I I I I CITY OF SALINA, KANSAS COMBINED WATER AND SEWAGE SYSTEM IMPROVEMENTS FINANCIAL FEASIBILITY REPORT GOVERNING BODY Gerald F. Simpson, Mayor Jack Weisgerber, Commissioner Wm. "Bill" Usher, Commissioner Keith G. Duckers, Commissioner Robert C. Caldwell, Commissioner ADMINISTRATION Norris Olson, City Manager Don 1. Harrison, City Clerk Larry Bengston, City Attorney Dean Boyer, City Engineer Ron Webster, Director of Utilities Laverne Pauls, Office Manager of Water and Sewage Department CONSULTING ENGINEER Wilson and Company Salina, Kansas BOND COUNSEL Stinson, Mag, Thomson, McEvers and Fizzell Kansas City, Missouri FINANCIAL CONSULTANT First Securities Company of Kansas, Inc. Wichita, Kansas I I I I I I I I I I I' I I I I I I I I TABLE OF CONTENTS Page I. Preface...................................................................................1 II. Scope......................................................................................3 III. Allocation of Costs...............................................................4 IV. Analysis of Present Water and Sewage System Revenue Bonded Indebtedness _ Series 1961................................................. ...........................6 V. Analysis of Water and Sewerage System Operations............................................................................ .8 VI. Water and Sewer Rate Schedules .....................................30 VII. Comparative Water and Sewer Rates for Cities in Kansas..................................... ........................... .38 VIII. Additional Indebtedness Requirements.............. ........... ...44 IX. Projection of Future Water and Sewage System Operations..... ................ ....... ......... ..........49 X. Flow of Funds.................................................................... .50 XI. Revenue Bond Maturity Schedules...................................53 XII. Summary and Recommendations....... ............ ................ ...61 I I I I I I I I I I I I I I I I I I I I. PREFACE In determining the financial feasibility of bond issuance to develop an adequate water treatment and distribution system, it is necessary to examine the effect of such financing of the additional Water and Sewage System Revenue Bond Debt capacity of the combined Water and Sewage System ofthe City of Salina, Kansas. The possibilities of the issuance of additional revenue bonds rang- ing from $1,500,000 to $3,000,000 junior lien revenue bonds are analyzed, and maturity schedules for the ranging amount of bonds to be issued are set forth in order that the cost is clearly reflected. Several basic facts should be emphasized in setting up finan- cial procedures for revenue bond programming: A. Revenue Bonds will constitute a lien on the revenues of the entire Water and Sewage System operations of the City and will not be a general obligation tax liability of the City. By statute, such bonds and the interest thereon are to be paid solely from the rates, fees, and charges for water and sewer services, and not from any other funds or sources. B. Revenue Bonds establish the burden of payment for water service and sewer service on the actual user of such service rather than upon the assessed valuation of properties lying within the corporate limits ofthe City. Revenue Bonds are not and cannot become general obligations of the City, and revenue bond financing is expressly a "self-liquidating" financial vehicle. C. Revenue Bond procedures require that the service charge and rates shall be sufficient to pay the cost of operation, improvement, and maintenance of the com- bined utility system financed, provide adequate bond reserves, and pay the principal of and interest on all outstanding Water and Sewage System Revenue Bonds. This, of course, means that revenue bond schedules must be adapted to the net income available for servicing any new additional revenue bonded in- debtedness, as well as the balance of$1,820,000 Water and Sewage System Revenue Bonds, Series of 1961, which will mature on August 1, 1986. 1 D. Revenue Bonds, through procedures established at the time of issuance, create a businesslike climate in the operation and maintenance of the combined Water and Sewage System. This is a result of Kansas statutory requirements, the continuing financial interest of bondholders and bond underwriters, and the necessity for maintaining adequate net earnings and efficient and businesslike operational procedures. Excessive op- erational expenses and failure to maintain net balances in operational accounts would result in inferior net incomes and thus focus the attention of City officials on any uneconomical operational conditions. E. Revenue Bonds establish procedures which assure a maximum number of continuous water and sewer con- nections, and emphasize the necessity that all proper- ties afforded water and sewer service shall be fairly and equitably charged for the availability of such services. F. There is no election required in the case of the issuance of additional Revenue Bond financing; however, a Notice of Intent to issue additional Revenue Bonds would be published and a fifteen (15) day protest period would have to elapse without a 20% protest from the qualified electors of the City before bonds would be issued. The total amount of the construction project would be listed in the Notice of Intent, which includes the Government Grant portion of $972,900. G. Moody's Rating Services reduced the rating of the Series 1961 Water and Sewage System Revenue Bonds from an "A" to a "Baa", and it is necessary to proceed with reestablishing the Series 1961 Bonds to an "A" rating and to pursue the possibility of obtaining an "A" rating on the new revenue bonds to be issued. 2 I I I I I I I I I I I I I I I I I I I II. SCOPE In developing this Report, the fiscal operations of the Com- bined Water and Sewage System Departments for the past five years have been examined, covering the period of time from January 1, 1971 through December, 1975, and also the first ten months operations of 1976. The Report has taken into considera- tion the increased annual gross revenue and also the increased annual operational expenses of the Water and Sewage System during these periods of time in order to project additional water and sewer rate increases over the next five year period to cover debt of the Series 1961 Bonds and any additional indebtedness. The object in the revenue bond program contained herein is to coordinate all system indebtedness which is shown in the six dif- ferent financial pro formas with the schedule as follows: Exhibit I - $1,500,000 - 20 year maturity Exhibit II - $2,000,000 - 25 year maturity Exhibit III - $2,250,000 - 25 year maturity Exhibit IV - $2,500,000 - 25 year maturity Exhibit V - $2,750,000 - 25 year maturity Exhibit VI - $3,000,000 - 25 year maturity 3 III. ALLOCATION OF COSTS The following is an incomplete list of projects that are needed to develop an adequate water treatment and distribution system. These projects are those listed of highest priority and should be completed in the shortest time frame to help eliminate existing problems within the City's present system. 1. Water Treatment Plant Sludge Disposal Facilities To meet E.P.A. discharge requirements. . . .. $ 575,000.00 2. South Santa Fe Avenue Main 30" main from Water Plant south to Crawford A venue. This main is needed to supply a distribution system and is a prerequisite to the mains on Crawford A venue . . . . . . . . . . . . . . . . 3. West Crawford Main 20" main along Crawford Avenue from Santa Fe A venue to Broadway Boulevard. This main is needed to supply a distribution system in the west central part of town. This main should be installed prior to any reconstruction work on Crawford A venue .................................. 4. East Crawford Main 30" main along Crawford A venue from Santa Fe Avenue to Ohio Street. This main is needed to supply a distribution system in the east side of town and to supply a 20" main on Ohio Street. This main should be installed prior to any reconstruction work on Crawford A venue . . . . . . . . . . . . . . . . . 5. North Fourth Main 20" main from the Water Treatment Plant to 1.0 MG Tower located at Santa Fe Avenue and Lincoln Avenue . . . . . . 4 142,000.00 169,500.00 276,000.00 427,500.00 I I I I I I I I I I I I I I I I I I I 6. Northwest Main 12" main on Grand Avenue from Woodlawn Avenue to Ninth Street, then north to Euclid A venue and the new elevated tower ....................... 350,000.00 7. North Elevated Tower 0.5 MG Elevated Water Tower in Thomas Park or 1-70 area. Needed to increase deficient fire flow in 1-70 area. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. South Ohio Main 20" main on Ohio Street from Crawford Avenue to Magnolia Road and 20" main on Magnolia Road from Ohio Street to Key Acres Tower and from Key Acres Tower to South Ninth Street. This loop will hopefully alleviate the riled water situation which prevails in the southeast area ....... 295,000.00 600,000.00 ESTIMATED CONSTRUCTION COSTS.. $2,835,000.00 TOTAL ESTIMATE FOR BOND ISSUE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $3,000,000.00 In addition to the above cost, A Grant from the Federal Govern- ment of $972,900 will be allocated to item #1. 5 IV. ANALYSIS OF PRESENTW ATERAND SEWAGE SYSTEM REVENUE BONDED INDEBTEDNESS - SERIES 1961 The following annual principal and interest requirements of the Water and Sewage System Revenue Bonded indebtedness and funds in reserve accounts are listed below. The principal and interest payments are due August 1 of each year and semiannual interest due on February 1 in each year. All funds in the accounts listed below are as of October 30, 1976. Water and Sewage System Revenue Bonds, Series of 1961 (Issued under Ordinance No. 6546) Maturity Interest Year Rate 8-1-77 8-1-78 8-1-79 8-1-80 8-1-81 8-1-82 8-1-83 8-1-84 8-1-85 8-1-86 3.50% 3.60% 3.60% 3.60% 3.60% 3.60% 3.70% 3.70% 3.70% 3.70% Princip~L _ Interest $ 150,000 155,000 160,000 170,000 175,000 185,000 195,000 200,000 210,000 __~~Q,OOO $1,820,000 Total $ 33,097.50 $ 183,097.50 60,945.00 215,945.00 55,365.00 215,365.00 49,605.00 219,605.00 43,485.00 218,485.00 37,185.00 222,185.00 30,525.00 225,525.00 23,310.00 223,310.00 15,910.00 225,910.00 __ 8,140.QO. 228,140.00 $357,567.50 $2,177,567.50 Account Funds Bond Reserve Fund. . . . . . . . . . . . . . . .. $ 560,000.00* Depreciation and Emergency Replacement Account ............... $ 146,605.91 ** Bond Retirement Account........... -0- Principal and Interest Account. . . . . . . 69,121.65 *The Bond Ordinance No. 6546 requires a maximum Bond Reserve of $300,000. The additional $260,000 is interest ac- cumulated from investments. **Bond Ordinance No. 6546 requires a maximum Deprecia- tion and Emergency Replacement Account of $125,000. The additional $21,605.91 is interest accumulated from invest- ments. 6 I i I I I I I I I I I I I I I I I I I I The call provisions provide that bonds may be called for re- demption and payment on August 1, 1971, or any interest payment date thereafter at par and accrued interest to date of redemption, together with a premium of 3% of the principal amount of each such bond so redeemed and paid. Bond Numbers remaining out- standing at the writing of this Report are Nos. 1781/3600. 7 v. ANALYSIS OF WATER AND SEWERAGE SYSTEM OPERATIONS The following analysis has been made of the City's annual audits, annual financial report, and profit and loss statements for the years 1971 through 1975 and the first ten months of 1976 (unaudited). The comparison of operating revenue and operating expenses have been examined to determine the areas of increases in each department. 1971 1972 1973* 1974 1975 1976 FIRST 10 MONTHS OPERATING REVENUE Water Revenue . . . . . . . . . . . . .. $ 651,739 $ 630,858 $ 965,012 $1,003,236 $1,041,120 $ 965,160 Sewage .................... . 372,516 384,634 390,624 366,817 399,484 347,008 Miscellaneous Income . . . . . . . . 13,684 4,091 2,086 8,258 20,354 9,814 Tapping Service and Frontage . . . . . . . . . . . . . . . . . . 11,607 12,171 6,810 19,374 13,250 15,059 Service Charge - Sanitation Dept. .. . . . . . . . . . 3,124 3,183 3-,-~?~ 5,368 5,734 ____ 4,384 Gross Revenue ............. . $1,052,670 $1,031,754 $1,367,807 $1,403,053 $1,479,942 $1,341,425 OPERATING EXPENSES Water Supply ............... $ Softening and Treatment ................ Pumping . . . . . . . . . . . . . . . . . . . . Distribution . . . . . . . . . . . . . . . . . Customers Account and Collection . . . . . . . . . . . . . Administrative and General . . . . . . . . . . . . . . . . . . . Sewage Treatment and Collection . . . . . . . . . . . . . Total Operating Expenses . . . . . . . . . . . . . . . . .. $ 9,702 $ 7,046 $ 10,220 $ 12,776 $ 21,344 $ 16,891 201,504 50,794 84,171 191,059 47,969 80,138 204,009 52,493 103,615 280,758 62,982 96,203 299,644 81,418 116,546 271,849 72,763 88,655 114,801 119,051 128,068 160,621 168,966 147,411 147,250 155,871 161,242 199,577 212,899 244,069 160,920 _~7,092 196,502 207,025 261,525 _ 229AA~ 769,142 $ _1~8,226 ~__856,14~ $1,019,942 $1,162,342 $1,g7!,08Q Net Operating Income for Debt Service ........... $ 283,528 $ 273,528 L511,65~ $ 383,11! ~17,600 $ 270,34~ *Water rates increased on January 1, 1973. 8 I I I I I I I I I I I I I I I I I I I THE CITY OF SALINA WATER AND SEWAGE FUND COMPARATIVE INCOME STATEMENT DECEMBER 31 1972 1971 REVENUE Water revenue. . . . . . . . . . . . . . . . . . . . . . . $ Sewage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Miscellaneous income ................ Tapping service and frontage ......... Service charge - Sanitation Department ....................... . 3,183.45 TOTAL REVENUE. . . . . . . . . . . . ., $1,034,938.89 630,858.30 $ 384,634.35 4,091.42 12,171.37 651,739.39 372,516.99 13,684.33 11,607.85 3,124.26 $1,052,672.82 OPERATING EXPENSES. . . . . . . . . . . . . . . . 758,229.86 769,146.06 NET INCOME AVAILABLE FOR DEBT SERVICE. . . . . . . . . . . . . . . . . . $ 276,709.03 $ 283,526.76 9 THE CITY OF SALINA Saline County, Kansas WATER AND SEWAGE FUND COMPARATIVE OPERATING EXPENSES STATEMENT WATER SUPPLY EXPENSES Maintenance - Well pumps and equipment. $ Well power .............................. Well house signals ....................... River intake power. . . . . . . . . . . . . . . . . . . . . . . Maintenance - Building and grounds ...... Maintenance - River basin. . . . . . . . . . . . . . . . SOFTENING AND TREATMENT EXPENSES Supervision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Salaries ................................. Electric power ........................... Gas service ........ . . . . . . . . . . . . . . . . . . . . . . Building operating supplies . . . . . . . . . . . . . . . Chemicals .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Maintenance - Equipment ................ Maintenance - Buildings. . . . . . . . . . . . . . . . . . Electricity - Calcium plant. . . . . . . . . . . . . . . . Gas - Calcium plant. . . . . . . . . . . . . . . . . . . . . . Supplies - Calcium plant ................. PUMPING EXPENSES Supervision. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ Salaries ................................. Electric power ........................... Gas service .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Lubricants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Building operating supplies . . . . . . . . . . . . . . . Maintenance - Electrical equipment & pumps .............................. Maintenance - Station building and grounds ........................... 10 DECEMBER 31 1972 1971 $ .62 2,266.39 1,893.16 2,268.80 52.54 564.97 7 ,046J~ $ 22,516.56 42,726.06 15,736.00 3,460.62 44.96 84,815.74 9,068.18 327.92 3,043.20 6,885.27 2,135}2 g~!,059.~~ 14,027.36 26,309.56 5,361. 72 353.23 47.85 1,175.51 514.10 179.84 $ 4 71~69-,--11 $ 234.35 4,597.21 1,840.32 1,917.60 101.08 1,012.24 ~02~~ $ 21,527.76 43,137.22 14,016.00 3,797.68 141.63 99,515.66 6,550.72 302.88 3,128.00 7,127.22 __~-"-~59.75 $201,5g_!J5~ $ 13,339.71 25,909.61 9,245.85 396.20 108.21 1,130.60 564.02 99.90 ----- $._M,794.1Q I I I I I I I I I I I I I I I I I I I DISTRIBUTION EXPENSES Supervision. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ Salaries ................................. Meter maintenance salaries. . . . . . . . . . . . . . . Meter maintenance supplies .............. Vehicle and equipment expense ........... Tapping supplies . . . . . . . . . . . . . . . . . . . . . . . . . Maintenance - Distribution mains . . . . . . . . . Maintenance - Elevated tanks ............ Maintenance - Reservoirs . . . . . . . . . . . . . . . . . Maintenance - Hydrants . . . . . . . . . . . . . . . . . . Miscellaneous materials and labor ........ DECEMBER 31 1972 1971 8,125.76 38,577.86 12,865.68 308.90 6,851.40 5,891,24 4,253.86 778.46 0.00 441.00 2,044.23 $ 80,138.39 $ 7,829.46 43,869.94 12,265.74 1,375.27 7,520.77 2,399.82 5,672.44 258.94 455.00 434.65 2,089.54 $ 84,171.57 CUSTOMERS' ACCOUNTING AND COLLECTION EXPENSES Office salaries ........................... Servicemen and meter readers salaries .... Servicemen and meter readers supplies . . . . Collection stations ....................... Maintenance - Office equipment. . . . . . . . . . . Office supplies .. . . . . . . . . . . . . . . . . . . . . . . . . . Vehicle expense . . . . . . . . . . . . . . . . . . . . . . . . . . Postage ................................. $ 49,199.54 47,431.99 470.93 1,807.00 1,814.07 2,706.49 3,154.79 12,466.57 $119,051.38 ADMINISTRATIVE AND GENERAL EXPENSES Supervision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Salaries ................................. Telephone expense ....................... Office supplies .. . . . . . . . . . . . . . . . . . . . . . . . . . Special engineering ...................... Social security .. . . . . . . . . . . . . . . . . . . . . . . . . . Insurance.............................. . Sales tax ................................ Property taxes ..... . . . . . . . . . . . . . . . . . . . . . . Accounts charged off ................... . . Long and short cash . . . . . . . . . . . . . . . . . . . . . . Employees' retirement. . . . . . . . . . . . . . . . . . . . Accident insurance . . . . . . . . . . . . . . . . . . . . . . . Auditing expense ........................ Contracting service ...................... Organizational dues and memberships. . . . . Office maintenance and utilities .......... Service performed - Other departments .... Car mileage and travel expenses .......... 11 $ 13,752.00 5,332.44 3,381.25 227.51 675.00 19,689.31 7,009.99 954.77 35,000.00 843.13 6.44 20,918.77 15,695.10 3,120.00 3,822.85 733.29 6,900.00 16,650.00 _J.l} 59.96 $H>~,.g71.81 $ 47,052.82 44,920.75 390.87 1,814.55 2,324.37 3,474.53 2,727.17 12,096.55 $114,801.61 $ 13,152.00 5,208.00 3,512.85 586.88 675.00 19,264.89 7,298.80 1,165.58 30,000.00 636.63 63.62 18,549.48 16,127.99 4,000.00 2,933.04 718.53 6,900.00 15,519.00 938.45 ~1,!7,250.74 DECEMBER 31 1972 1971 SEW AGE TREATMENT AND COLLECTION EXPENSES Supervision. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ 34,819.72 Salaries ................................. 70,415.92 Electric power ........................... 26,800.20 Gas service ... . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,378.05 Plant operating supplies. . . . . . . . . . . . . . . . . . 872.04 Maintenance - Equipment ................ 6,894.82 Maintenance - Buildings and grounds ..... 524.13 Maintenance - Pumping stations .......... 4,931.22 Maintenance - Sanitary sewers. . . . . . . . . . . . 2,221.50 Vehicle expense. . . . . . . . . . . . . . . . . . . . . . . . . . 6,235.10 $157,092.70 TOTAL OPERATING EXPENSES...... $758,229.86 12 $ 39,860.31 70,859.21 25,055.69 3,156.22 194.68 5,429.01 593.99 6,583.72 2,455.49 6,732.40 $160,920.72 $769,146.06 I I I I I I I I I I I I I I I I I I I THE CITY OF SALINA WATER AND SEWAGE FUND COMPARATIVE STATEMENT OF REVENUE AND EXPENSE DECEMBER 31 1974 1973 REVENUE Water Revenue .............. Sewage. . . . . . . . . . . . . . . . . . . . . . Miscellaneous income ........ Tapping service and frontage . Service charge - Sanitation Department ................. 5,368.95 TOTAL REVENUE .... $1,403,056.18 OPERATING EXPENSES. . . . . . 1,019,945.44 NET INCOME AVAILABLE FOR DEBT SERVICE. . . . . . . . . . . . . $ 383,110.74 $1,003,236.78 $ 366,817.60 8,258.52 19,374.33 965,012.73 390,624.31 2,086.08 6,810.33 3,275.64 $1,367,809.09 856,153.29 $ 511,655.80 13 THE CITY OF SALINA Saline County, Kansas WATER AND SEWAGE FUND COMPARATIVE OPERATING EXPENSES STATEMENT WATER SUPPLY EXPENSES Maintenance - well pumps and equipment Well power .............................. Well house signals ....................... River intake power. . . . . . . . . . . . . . . . . . . . . . . Maintenance - building and grounds. . . . . . . Maintenance - river basin ................ SOFTENING AND TREATMENT EXPENSES Supervision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Salaries ................................. Electric power ........................... Gas service .............................. Building operating supplies . . . . . . . . . . . . . . . Chemicals .......... . . . . . . . . . . . . . . . . . . . . . Maintenance - equipment. . . . . . . . . . . . . . . . . Maintenance - buildings . . . . . . . . . . . . . . . . . . Electricity - calcium plant ................ Gas - calcium plant ...................... Supplies - calcium plant .. . . . . . . . . . . . . . . . . PUMPING EXPENSES Supervision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Salaries ................................. Electric Power ............ . . . . . . . . . . . . . . . Gas service ............ . . . . . . . . . . . . . . . . . . Lubricants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Building operating supplies . . . . . . . . . . . . . . . Maintenance - electrical equipment & pumps Maintenance - station building and grounds Wearing apparel ......................... 14 DECEMBER 31 1974 1973 $ 131.98 6,938.37 2,297.39 1,178.22 22.90 2,208.02 $ 12,776.88 $ 32,065.20 47,449.30 16,191.91 3,851.75 76.48 147,500.96 13,425.52 3,801.61 3,657.44 9,065.03 ~~72.93 $280,758.13 $ 15,852.73 36,622.35 7,494.60 352.08 108.00 545.15 433.73 131.61 1,441.99 $ 62,982.24 $ 455.54 3,391.53 2,304.10 2,186.96 110.32 1,772.22 ~ 10,220.67 $ 23,099.50 43,438.97 15,214.76 2,373.77 39.95 102,467.40 6,723.76 343.23 2,808.96 5,949.90 1,549.4~ $201:,g09.68 $ 14,818.89 29,075.92 7,046.72 351.17 105.70 756.50 90.84 247.89 0.00 ---- $ 52,493.63 I I I II I I I I DECEMBER 31 1974 1973 DISTRIBUTION EXPENSES Supervision . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ Salaries ................................. Meter maintenance salaries. . . . . . . . . . . . . . . Meter maintenance supplies .............. Vehicle and equipment expense ........... Tapping supplies . . . . . . . . . . . . . . . . . . . . . . . . . Maintenance - distribution mains ......... Maintenance - storage tanks . . . . . . . . . . . . . . Maintenance - reservoirs ................. Maintenance - hydrants .................. Miscellaneous materials and labor ........ 14,260.15 44,654.84 8,094.27 1,306.99 7,837.16 6,906.84 8,554.10 840.04 0.00 1,311.51 2,437.56 $ 96,203.46 $ 8,517.22 38,123.36 13,338.83 3,576.64 5,167.23 5,429.32 7,967.63 17,982.89 0.00 1,642.90 1,869.64 $103,615.66 CUSTOMERS' ACCOUNTING AND COLLECTION EXPENSES Office salaries. . . . . . . . . . . . . . . . . . . . . . . . .. $ 61,493.46 $ 51,659.33 Servicemen and meter readers salaries. . . 57,403.96 49,031.59 Servicemen and meter readers supplies. . . 854.52 521.90 Collection stations ...................... 1,852.10 1,806.70 Maintenance - office equipment. . . . . . . . . . 2,176.90 2,357.53 Office supplies. . . . . . . . . . . . . . . . . . . . . . . . . . 4,213.92 4,564.00 Vehicle expense. . . . . . . . . . . . . . . . . . . . . . . . . 5,123.60 4,247.87 Postage ................................ 15,970.27 13,880.04 Lease data processing equipment. . . . . . . . . 11,353.72 0.00 Wearing apparel. . . . . . . . . . . . . . . . . . . . . . . . 178.91 0.00 $160,621.36 $128,068.96 I I I I I I I ADMINISTRATIVE AND GENERAL EXPENSES Supervision. . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ 15,840.80 Salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,338.04 Telephone expense . . . . . . . . . . . . . . . . . . . . . . 3,964.57 Office supplies. . . . . . . . . . . . . . . . . . . . . . . . . . 1,682.92 Special engineering ...... . . . . . . . . . . . . . . . 2,384.00 Social security. . . . . . . . . . . . . . . . . . . . . . . . . . 26,168.79 Insurance.............................. 7,213.05 Sales tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,331.84 Property taxes. . . . . . . . . . . . . . . . . . . . . . . . . . 40,000.00 Accounts charged off . . . . . . . . . . . . . . . . . . . . 2,107.20 Long and short cash. . . . . . . . . . . . . . . . . . . . . 20.61 Employees' retirement .................. 26,607.97 Accident insurance. . . . . . . . . . . . . . . . . . . . . . 21,975.93 Auditing expense ....................... 7,700.00 Contracting service ..................... 7,277.13 Organizational dues and memberships. . . . 570.42 Office maintenance and utilities ......... 6,900.00 Service performed - other departments ... 18,265.00 Car mileage and travel expenses. . . . . . . . . 2,229.70 $199,577.97 $ 14,358.00 5,869.25 3,723.78 321.10 681.38 21,656.20 7,516.03 704.69 35,000.00 408.48 80.84 20,423.04 19,666.35 3,550.00 1,612.25 918.72 6,900.00 16,650.00 1,202.17 $161,242.28 I I I I 15 DECEMBER 31 1974 1973 SEWAGE TREATMENT AND COLLECTION EXPENSES Supervision. . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ 28,988.40 Salaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104,667.11 Electric power. . . . . . . . . . . . . . . . . . . . . . . . . . 28,714.47 Gas service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,276.54 Plant operating supplies. . . . . . . . . . . . . . . . . 1,284.79 Maintenance - equipment. . . . . . . . . . . . . . . . 13,654.21 Maintenance - buildings and grounds. . . . . 1,773.43 Maintenance - pumping stations ......... 8,305.23 Maintenance - sanitary sewers. . . . . . . . . . . 2,380.23 Vehicle expense. . . . . . . . . . . . . . . . . . . . . . . . . 12,648.99 Wearing apparel. . . . . . . . . . . . . . . . . . . . . . . . 332.00 $ 207,025.40 TOTAL OPERATING EXPENSES. $1,019,945.44 16 $ 25,278.58 84,389.03 27,738.67 4,406.58 995.77 13,204.54 9,065.41 10,010.91 10,415.65 10,997.27 0.00 $196,502.41 $856,153.29 I I I I I I I I I I I I I I I I I I I CITY OF SALINA, KANSAS - WATER AND SEWERAGE DEPARTMENT PROFIT AND LOSS STATEMENT FOR THE YEAR ENDING DECEMBER 31,1975 REVENUE Water Revenue. . . . . . . . . . . . . . . . . . . . . . .. $1,041,120.65 Sewerage Revenue. . . . . . . . . . . . . . . . . . . . . 399,484.57 Miscellaneous Income. . . . . . . . . . . . . . . . . . 20,354.16 Front Footage and Tapping Charges .... 13,250.57 Service Charge - Sanitation Department 5,734.05 TOTAL INCOME. .. . ... ... ... . . ... . . .... . .. . ..... . .... .. ........ .$1,479,944.00 W ATER SUPPLY EXPENSES Maintenance - Well Pumps and Equipment . . . . . . . . . . . . . . . . . . . . . . . . .. $ Well Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Well House Signals .................... River Intake Power . . . . . . . . . . . . . . . . . . . . Maintenance - Buildings and Grounds. . . Maintenance - River Basin ............. 5,170.80 10,602.50 2,402.38 2,411.30 32.86 725.10 $ 21,344.94 SOFTENING AND TREATMENT EXPENSES Supervision ........................... $ 35,188.00 Salaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,709.10 Electric Power. . . . . . . . . . . . . . . . . . . . . . . . . 27,535.4 7 Gas Service ........................... 5,316.08 Building Operating Supplies. . . . . . . . . . . . 66.89 Chemicals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152,614.78 Maintenance - Equipment . . . . . . . . . . . . . . 8,954.63 Maintenance - Buildings ............... 45.79 Electric Power - Calcining Plant. . . . . . . . 5,840.68 Gas Service - Calcining Plant. . . . . . . . . . . 11,544.16 Supplies - Calcining Plant. . . . . . . . . . . . . . 3,828.78 $299,644.36 PUMPING EXPENSES Supervision ........ ..... ........ ...... $ Salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Electric Power. . . . . . . . . . . . . . . . . . . . . . . . . Gas Service ........................... Lubricants ............................ Building Operating Supplies. . . . . . . . . . . . Maintenance - Electric Equipment & Pumps. . . . . . . . . Maintenance - Station Building & Grounds .......................... Wearing Apparel ...................... 21,192.93 44,205.10 13,158.07 391.02 193.55 643.97 43.56 238.15 1,351.98 $ 81,418.33 17 DISTRIBUTION EXPENSES Supervision ........................... $ 19,048.13 Salaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,099.07 Meter Maintenance - Salaries .......... 8,872.69 Meter Maintenance - Supplies. . . . . . . . . . 1,683.29 Vehicles - Equipment Expenses. . . . . . . . . 7,035.92 Tapping Supplies. . . . . . . . . . . . . . . . . . . . . . 9,899.16 Maintenance - Distribution Mains. . . . . . 10,247.36 Maintenance - Storage Tanks. . . . . . . . . . . 3,241.13 Maintenance - Hydrants ............... 2,349.41 Miscellaneous Materials and Labor ..... 1,070.31 $116,546.47 CUSTOMER ACCOUNTING AND COLLECTION EXPENSES Office Salaries. . . . . . . . . . . . . . . . . . . . . . . .. $ 58,697.37 Servicemen and Meter Readers Salaries. 63,267.17 Servicemen and Meter Readers Supplies. 167.60 Collection Stations. . . . . . . . . . . . . . . . . . . . . 1,841.35 Maintenance - Office Equipment. . . . . . . . 2,335.18 Office Supplies ........................ 5,253.80 Vehicle Expenses . . . . . . . . . . . . . . . . . . . . . . 6,176.4 7 Lease Electronic Data Processing Equipment ............... Postage ............................... Wearing Apparel. . . . . .. . . . . .. . .. . . . . . . 13,806.00 17,058.67 363.04 $168,966.65 ADMINISTRATIVE AND GENERAL EXPENSES Supervision ........................... $ Salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Telephone Expenses ................... Office Supplies ........................ Special Engineering ................... Social Security ........................ Insurance - Buildings .................. Sales Tax............................. Property Taxes ........................ Accounts Charged Off. . . . . . . . . . . . . . . . . . Long and Short Cash .................. Employees Retirement ................. Accident Insurance .................... Auditing Expense. . . . . . . . . . . . . . . . . . . . . . Contracting Services . . . . . . . . . . . . . . . . . . . Organizational Dues - Membership ..... Maintenance - Government Center. . . . . . Services Performed - Other Departments. . . . . . .. . .. . . . . . . . Car Mileage and Travel Expenses. . . . . . . 17,392.80 7,690.89 3,936.70 990.22 675.00 29,640.89 6,008.35 783.72 45,000.00 769.44 1,346.35 33,970.34 28,108.63 1,100.00 3,247.50 274.12 9,381.00 20,977.50 1,605.55 $212,899.00 18 I I I I I I I I I I I I I I I I I I I SEWAGE TREATMENT AND COLLECTION EXPENSES Supervision ........................... $ 32,415.43 Operating Salaries. . . . . . . . . . . . . . . . . . . . . 119,397.86 Electric Power. . . . . . . . . . . . . . . . . . . . . . . . . 47,284.68 Gas Service ........................... 4,667.52 Plant Operating Supplies. . . . . . . . . . . . . . . 1,905.96 Maintenance - Equipment. . . . ... . .. . . . . 23,007.39 Maintenance - Building and Grounds ... 1,413.60 Maintenance - Pumping Stations ....... 10,060.98 Maintenance - Sanitary Sewer. . . . . . . . . . 4,489.04 Vehicle Expenses. . . . . . . .. . ... . . .. . . . . . 16,162.21 Wearing Apparel. . . . . . . . .. . .. . . .... . . . 632.53 Q's TV Expenses. . . . . . . . . . . . . . . . . . . . . . . 88.37 Pump Station Monitor ................. 0.00 $261,525.57 TOTAL OPERATING EXPENSES. ... . . . .. . . . . . . .. . . ... . . . . . . ... . .. . ... .. .$1,162,345.32 NET INCOME AVAILABLE FOR DEBT SERVICE.........................$ 317,598.68 19 CITY OF SALINA, KANSAS WATER AND SEWERAGE DEPARTMENT PROFIT AND LOSS STATEMENT FOR THE FIRST NINE MONTHS OF 1976 REVENUE Water Revenue . . . . . . . . . . . . . . . . . . . . . . . . Sewerage Revenue . . . . . . . . . . . . . . . . . . . . . Miscellaneous Income . . . . . . . . . . . . . . . . . . Front Footage and Tapping Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Service Charge - Sanitation Department ......................... 3,890.93 TOTAL INCOME. . . . .. . . .. . . . . . . . . . . . .. . . . . .. . . . . . . . .. . .. . .. . .. . .$1,205,328.49 WATER SUPPLY EXPENSES Maintenance - Well Pumps and Equipment . . . . . . . . . . . . . . . . . . . . . . . . .. $ Well Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . Well House Signals . . . . . . . . . . . . . . . . . . . . River Intake Power . . . . . . . . . . . . . . . . . . . . Maintenance - Buildings and Grounds. . . Maintenance - River Basin ............. $867,805.58 311,591.46 9,476.53 12,563.99 577.21 8,770.00 2,575.56 3,455.03 18.4 7 419.92 $ 15,816.19 SOFTENING AND TREATMENT EXPENSES Supervision ........................... $ 28,026.80 Salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,536.26 Electric Power. . . . . . . . . . . . . . . . . . . . . . . . . 27,873.00 Gas Service ........................... 5,314.65 Building Operating Supplies. . . . . . . . . . . . 113.81 Chemicals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104,925.88 Maintenance - Equipment. . . . . . . . . . . . . . 4,766.54 Maintenance - Buildings ............... 264.4 7 Electric Power - Calcining Plant. . . . . . . . 6,154.22 Gas Service - Calcining Plant. . . . . . . . . . . 20,584.91 Supplies - Calcining Plant. . . . . . . . . . . . . . 1,232.49 $241,793.03 PUMPING EXPENSES Supervision ........................... $ Salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Electric Power. . . . . . . . . . . . . . . . . . . . . . . . . Gas Service ........................... Lubricants ............................ Building Operating Supplies. . . . . . . . . . . . Maintenance - Electric Equipment & Pumps. . . . . . . . . . . . . . . . . . . . . . . . . . . . Maintenance - Station Building & Grounds .......................... Wearing Apparel. . . . . . . .. . . . .. . .. . . . . . 16,665.77 31,407.23 17,016.53 286.78 144.60 584.74 0.00 190.00 133.59 $ 66,429.24 20 I I I I I I I I I I I I I I I I I I I DISTRIBUTION EXPENSES Supervision ........................... $ Salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Meter Maintenance - Salaries .......... Meter Maintenance - Supplies .......... Vehicles - Equipment Expenses . . . . . . . . . Tapping Supplies ...................... Maintenance - Distribution Mains ...... Maintenance - Storage Tanks. . . . . . . . . . . Maintenance - Hydrants ............... Miscellaneous Materials and Labor ..... 11,089:01 36,564.18 7,063.99 4,593.39 6,436.22 5,874.42 3,233.58 847.22 3,535.53 762.93 $ 80,000.47 CUSTOMER ACCOUNTING AND COLLECTION EXPENSES Office Salaries. . . . . . . . . . . . . . . . . . . . . . . .. $ 44,067.02 Servicemen and Meter Readers Salaries. 50,549.82 Servicemen and Meter Readers Supplies. 280.48 Collection Stations. . . . . . . . . . . . . . . . . . . . . 1,466.20 Maintenance - Office Equipment. . . . . . . . 1,949.02 Office Supplies ........................ 3,328.56 Vehicle Expenses ...................... 4,265.07 Lease Electronic Data Processing Equipment ............... Postage ............................... Wearing Apparel ...................... 10,345.10 16,532.78 201.43 $132,985.48 ADMINISTRATIVE - GENERAL EXPENSES Supervision ........................... $ 13,814.40 Salaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,468.17 Telephone Expenses ................... 2,441.11 Office Supplies ........................ 754.97 Special Engineering ................... 675.00 Social Security ........................ 32,367.95 Insurance - Buildings. . . . . . . . . . . . . . . . . . 0.00 Sales Tax ............................. 399.47 Property Taxes. . . . . . . . . . . . . . . . . . . . . . . . 37,502.00 Accounts Charged Off. . .. . .. .. ... . . . . .. 0.00 Long and Short Cash .................. 29.16 Employees Retirement ................. 36,945.27 Accident Insurance .................... 33,515.81 Auditing Expenses. . . . . . . . . . . . . . . . . . . . . 3,565.00 Contracting Services. . . . . . . . . . . . . . . . . . . 2,198.22 Organizational Dues - Membership ..... 115.30 Maintenance - Government Center. . . . . . 10,734.00 Services Performed - Other Departments.................. 17,027.00 Car Mileage and Travel Expenses. . . . . . . 4,003.37 $202,556.20 21 SEWAGE TREATMENT AND COLLECTION EXPENSES Supervision ........................... $ 20,761.07 Operating Salaries. . . . . . . . . . . . . . . . . . . . . 101,832.84 Electric Power. . . . . . . . . . . . . . . . . . . . . . . . . 43,593.20 Gas Service ........................... 5,277.04 Plant Operating Supplies. . . . . .. . .. . . . . . 1,263.73 Maintenance - Equipment. . . . . . . . . . . . . . 11,662.19 Maintenance - Building and Grounds ... 1,214.40 Maintenance - Pumping Stations ....... 4,351.56 Maintenance - Sanitary Sewer. . . . . . . . . . 1,534.78 Vehicle Expenses. . . . . .. . . . . .. .. . . . . . . . 14,357.21 Wearing Apparel ...................... 715.01 Q's TV Expenses. . . .. . . . .. . .. .. . ... . . . . 1,242.42 Pump Station Monitor ................. 0.00 $207,805.45 TOTAL OPERATING EXPENSES.. . . . . . ... . . . .. . . . . . .... . . . . ... .. .. . . .. ..$ 947,386.06 NET INCOME AVAILABLE FOR DEBT SERVICE.........................$ 257,942.43 22 I I I I I I I I I I I I I I I I I I I CITY OF SALINA, KANSAS WATER AND SEWERAGE DEPARTMENT BALANCE SHEET (AS OF SEPTEMBER 30,1976) ASSETS Accounts Receivable ................... $ Operating Store ....................... Operating Store - Inventory ............ Meter Parts ........................... Meter Parts - Inventory . . . . . . . . . . . . . . . . Jobs in Process ........................ Cash................................. . Furniture and Fixtures. . . . . . . . . . . . . . . . . Plants, Mains, Equipment, etc. ......... Water and Sewerage Treasury. .. .. .. .. . Operating Treasury. . . . . . . . . . . . . . . . . . . . Bond and Interest. . . . . . . . . . . . . . . . . . . . . . Bond Reserve . . . . . . . . . . . . . . . . . . . . . . . . . . Bond Reserve - Investments ............ Depreciation and Emergency ........... Depreciation and Emergency - Investments. . . . . . . . . . . . . . . . . . . . . . . . . Extension Bond Retirement ............ Extension Bond Retirement - Investments . . . . . . . . . . . . . . . . . . . . . . . . . 0.00 TOTAL ASSETS. .. . .. . . . . . .. . .. .. . . . . . .. . . . . . . . . .$11,315,961.32 140,309.78 0.00 88,532.93 2,376.76 12,463.30 0.00 8,802.12 88,129.38 9,787,568.46 272,145.23 180,462.45 51,507.85 44.69 545,000.00 16,618.57 122,000.00 0.00 LIABILITIES Accounts Payable Engs. ............... $ 181,508.77 Sanitation Fees Collected. . . . . . . . . . . . . . . 357.17 Bond Indebtedness. . . . . . . . . . . . . . . . . . . .. 1,820,000.00 Reserve for Services Performed ......... 17,027.00 Reserve for Auditing. . . . . . . . . . . . . . . . . . . 15,231.00 Meter Deposits ........................ 49,565.00 Reserve for Property Taxes. . . . . . . . . . . . . 37,502.00 Reserve for Bond Principal ............. 3,164.00 Reserve for Bond Interest .............. 43,005.65 Reserve for Bond Reserve .............. 545,044.69 Reserve for Depreciation and Emergency ...... . . . . . . . . . . . . . . . . . . . . 138,618.57 Reserve for Extension and Bond Retirement .................... 0.00 TOTAL LIABILITIES. . .. .. . . .. .. .. .. . . .. .. . . .. . ..$ 2,844,695.85 PROFIT & LOSS Net Worth ............................ $8,371,867.48 Net Profit. . . . . . . . . . . . . . . . .. . . .. . . . . . . . 99,398.01 $ 8,471,265.47 TOTAL LIABILITIES AND NET WORTH......... .$11,315,961.32 23 SALINA, KANSAS WATERWORKS PROJECT AVERAGE NUMBER OF WATER AND SEWER CONNECTIONS 1972 13,336 1973 13,581 1974 13,016* 1975 14,154 1976 14,406 *The City of Salina was converted to the computer system in 1974 which gave an actual count of customers. Previously, the count had been done manually. WATER CUSTOMERS (10 largest) NAME 1. WESTINGHOUSE ELECTRIC 2. CAPEHART HOUSING 3. TONY'S PIZZA 4. ASBURY HOSPITAL 5. RURAL WATER DISTRICT 6. ST. JOHN'S HOSPITAL 7. KANSAS WESLEYAN UNIVERSITY 8. ROBERTS MANUFACTURING 9. STATLER HILTON 10. ROMNEY INTERNATIONAL 24 TOTAL GALLONS PURCHASED 1975 99,801,152 59,444,720 28,278,888 21,991,200 19,271,400 18,336,472 14,464,824 13,092,992 11,522,940 11,509,476 - - - - - - - - - - - - - - - - - - - SALINA, KANSAS WATER DEPARTMENT OPERATIONS 1971 1971 NONTH SERVICE CHARGE OF WATER SEWER MISCELLANEOUS TAPS AND FROM TOTAL GALLONS GALLONS YEAR INCOME INCOME INCOME FRONT FOOTAGE SANITATION I NC OM E PUMPED SOLD January $ 43,953.81 $ 30,455.50 $ 419.94 $ 36.00 $ 0.00 $ 74,865.25 141,972,000 113,243,460 F ebrua ry 39,488.87 30,351.67 0.00 0.00 258.63 72 ,566.94 125,884,000 96,987,176 Ma rch 42,992.82 30,431.69 1,171.29 2,166.90 257.25 74,552.18 141,807,000 96,102,292 April 45,741.75 30,428.85 816.37 135.00 257.94 77 ,379.91 162,991,000 115,957,952 May 53,386.85 30,461.43 9,002.65 1,639.86 259.92 94,750.71 176,493,000 143,364,672 June 56,608.80 30,401.28 83.44 4,161.23 260.25 91,515.00 228,285,000 117,115,377 July 69,043.23 31,765.12 451.75 24.00 258.96 101,543.06 227,905,000 204,387,260 August 70,217.21 31 ,726.94 51.78 1,135.50 260.52 103,391.95 288,791,000 240,341,376 September 80,634.29 31,795.34 418.47 641.86 260.97 113,750.93 219,350,000 203,831,496 October 58,987.48 31,754.94 548.96 324.00 263.52 91,878.90 174,224,000 161,303,208 November 48,030.44 31,492.57 475.95 1,184.50 262.86 81,446.32 131,667,000 124,060,288 December 42,653.84 31,451.66 243.73 159.00 523.44 75,031.67 133,347,000 100,235,740 I:\:) $651,739.39 $372,516.99 $13,684.33 $11 ,607.85 $3,124.26 $ 1 ,052,672.82 2,152,716,000 1,716,930,297 01 1972 1972 MONTH SERVICE CHARGES OF WATER SEWER M I SCELLAN EOUS TAPS AND FROM TOTAL GALLONS GALLONS YEAR ItKOME I r~COME INCOME FROin FOOTAGE SANITATION INCOME PUMPED SOLD January $ 43,509.85 $ 31,454.67 $ 101.29 $ 358.75 $ 0.00 $ 75,424.56 130,994,000 100,386,836 February 41,848.52 31,524.21 955.56 12.00 261.00 74,601.29 133,904,000 99,804,892 March 46,002.72 31,542.32 347.31 180.00 263.01 78,335.36 151,754,000 118,663,468 Apri 1 47,742.86 31,440.95 71.50 852.69 262.62 80,370.62 157,544,000 120,569,372 May 49,889.25 31,583.37 1,008.65 2,035.86 263.97 84,781.10 164,635,000 126,966,268 June 63,697.73 31 ,299.21 512.68 1,951.42 264.60 97,725.64 238,860,000 175,447,880 July 75,090.00 32,784.69 162.20 1 , S87 . 00 264.78 109,888.67 242,196,000 218,697,996 August 59,044.38 32,563.68 478.46 3,303.92 265.32 95,655.76 235,069,000 188,416,712 September 66,862.91 32,667.22 238.44 1,064.73 266.79 101,100.09 165,385,000 157,661,994 October 48,298.75 32,609.52 88.86 753.00 267.48 82,017.61 151,327,000 117,958,104 November 45,480.40 32,578.92 0.00 60.00 268.62 78,387.94 136,067,000 111,015.168 December 43,390.93 32,585.59 126.47 12.00 535.26 76,650.25 138,613 ,nOD 104,436,508 $630,858.30 $384,634.35 $ 4,091.42 $12,171.37 $3,183.45 $1,034,938.89 2,046,348,000 1 ,640,025,198 SALINA, KANSAS WATER AND SEWER SYSTEM OPERATIONS 1973 1973 MONTH WATER SEWER MISCELLANEOUS TAPS AND SERVICE CHARGE TOTAL GALLONS GALLONS OF INCOME INCOME INCOME FRONT FOOTAGE FROM INCOME PUMPED SOLD YEAR SAfJITATION January $ 66,803.88 $ 32,450.15 $ 243.49 $ 748.47 $ 0.00 $ 100,245.99 143,345,000 107,609,524 February 63,866.56 32,468.59 182.67 555.55 266.64 97,340.01 131,752,000 101,527,536 Ma rch 64,659,01 32,485.83 50.45 679.74 267.96 98,142.99 145,189,000 105,357,296 Apr; 1 62,636.10 32,520.34 402.71 739.00 268.95 96 ,567.10 139,769,000 99,213,224 May 69,226.78 32,529.27 243.34 899.14 270.45 103,168.98 166,447,000 112,303,972 June 92,903.97 32,706.25 10.00 292.59 270.15 126,182.96 270,841,000 164,378,984 July 140,129.07 32,056.27 98.00 480.00 270.48 173,033.82 291,211,000 277,850,584 August 102,922.84 32,715.45 229.30 668.83 274.20 136,810.62 242,188,000 220,127,388 September 96,767.35 32,795.61 76.84 300 . 50 273.06 130,213.36 157,616,000 148,954,512 October 67,664.82 32,639.38 178.52 240.00 276.93 100,999.65 154,196,000 110,132,528 November 69,602. 19 32,647.61 181.45 1,206.51 276.96 103,914.72 142,908,000 111 ,651 ,716 l\J December 67,830.16 32,609.56 189.31 0.00 559.86 101,188.89 139,320,000 114,438,016 0') $965,012.73 $390,624.31 $ 2,086.08 $ 6,810.33 $3,275.64 $ 1,367,809.09 2,124,782,000 1,673,545,280 1974 1974 MONTH WATER SEWER t1I SCELLANEOUS TAPS AND SERVICE CHARGE TOTAL GALLONS GALLONS OF INCOME INCOME INCOME FRONT FOOTAGE FROM INCOME PUMPED SOLD YEAR SANITATION January $ 66,508.53 $ 30,928.27 $ 551.49 $ 847.91 $ 0.00 $ 98,836.20 151,223,000 103,107,312 February 63,208.37 32,509.93 1,549.17 790.47 280.53 98,338.47 123,918,000 99,660,528 Ma rch 65,618.33 32,497.70 2,001.09 210.00 654.37 100,981.49 146,312,000 106,615,432 Apr; 1 68,467.89 32,583.46 444.85 3,500.00 468.45 105,464.65 148,186,000 120,042,032 May 74,955.05 10,111.01 245.47 1 ,786. 09 468.10 87,565.72 173,880,000 121,685,388 June 82,691. 42 32,820.18 529.78 72.00 212.75 116,326.13 219,588,000 143,246,488. July 131,460.51 32,584.07 172.25 1,515.12 469.35 166,201.30 385,339,000 253,124,696 August 139,523.37 32,573.05 208.73 1,282.50 466.85 174,054.50 208,399,000 279,352,568 September 87,438,08 32 ,412 . 89 332.58 6,515.00 468.70 127,167.25 171,142,000 152,550,860 October 82,582.12 33,198.55 1,853.92 48.00 469.90 118,152.49 167,042,000 136,665,584 November 71,368.42 31,957.60 307.19 681.00 467.90 104,782.11 148,827,000 114,021,380 December 69,414.69 32,640.89 62.00 2,126.24 942.05 105,185.87 148,762,000 110,773,564 $1,003,236.78 $366,817.60 $ 8,258.52 $19,374.33 $5,368.95 $1,403,056.18 2,192,618,000 1,740,845,832 - - - - - - - - - - - - - - - - - - - SALINA, KANSAS WATER DEPARTMENT OPERATIONS 1975 1975 r~ONTH WATER SEWER MISCELLANEOUS TAPS AND SERVICE CHARGE TOTAL GALLONS GALLONS OF INCOME INCOME INCOME FRONT FOOTAGE FROM INCOME PUMP ED SOLD YEAR SANITATION January $ 73,888.73 $ 31,990.66 $ 4,375.25 $ 412.86 $ 0.00 $ 110,667.50 148,761,000 119,538,628 February 68,578.66 32,169.26 600.44 25.00 471. 90 101,845.26 135,269,000 107,494,332 Ma rch 67,492.58 32,351.95 234.60 1,328.02 469.25 101,876.40 146,204,000 106,551,852 April 72,037.21 32,285.98 366.13 1,849.80 471.20 107,010.32 150,985,000 95,909,308 t..:l r~ay 82,817.97 32,633.49 159.04 1,135.00 475.46 117,220.96 197,200,000 137,370,200 -:] June 88,797.53 32,621.44 245.76 923.69 477.20 123,065.62 180,690,000 151,644,284 July 101,962.08 34,515.20 174.74 827 . 43 478.65 137,958.10 329,644,000 181,505,192 Augus t 152,557.05 34,344.15 131.90 1,957.60 478.10 189,468.80 292,049,000 253,438,856 September 99,526.23 33,969.53 11 ,040.48 1,208.90 480.95 146,226.09 180,057,000 166,545,216 October 80,441. 51 34,076.43 407.41 1,886.41 481.39 117,293.15 182,745,000 152,188,763 November 83,281.84 34,335.93 1,461.09 512.43 481.65 120,072.94 150,432,000 138,283,508 December 69,739.26 34,190.55 1,157.32 1,183.43 968.30 107,238.86 147,456,000 110,793,012 $1,041,120.65 $399,484.57 $20,354.16 $13,250.57 $5,734.05 $ 1,479,944.00 2,241,492,000 1,721,263,151 SALINA, KANSAS WATER AND SEWER SYSTEM OPERATIONS 1971 1972 GALLONS GALLONS AVERAGE MAXIMUM MINI~1UM GALLONS GALLONS AVERAGE r~AX I MUM ~1INIMUM PUMPED SOLD DAY DAY DAY PUMPED SOLD DAY DAY DAY January . 141,972,000 113,243,460 4,579,741 5,181,000 3,242,000 130,994,000 100,386,836 4,225,612 4,932,000 3,466,000 February. 125,884,000 96,987,176 4,495,857 4,862,000 4,111,000 133,904,000 99,804,892 4,617,37Q 6,018,000 4,0n2,00O March 141,807,000 96,102,292 4,574,419 5,377 ,000 3,844,000 151,754,000 118,663,468 4,895,290 6,960,ono 3,930,000 April 162,991 ,000 115,957,952 5,433,033 6,447,000 4,348,000 157,544,000 120,569,372 5,251,466 7,399,000 3,530,000 May. 176,493,000 143,364,672 5,693,322 8,094,000 3,943,000 164,635,000 126,966,268 5,310,8 8,137,000 3,414,000 June. 228,285,000 117,115,377 7,609,500 12,414,000 4,869,000 238,860,000 175,447,880 7,962,000 11 ,019,000 5,41'9,000 July. 227,905,000 204,387,260 7,351,774 10,962,000 3,430,000 242,196,000 218,697,996 7,812,774 13,743,000 4,242,oon Augus t. 288,791,000 240,341,376 9,315,838 13,549,000 5,442,000 235,069,000 188,416,712 7,582,870 11 ,543,000 4,226,000 September 219,350,000 203,831,496 7,311 ,666 10,836,000 3,833,000 165,385,000 157,661,994 5,512,833 6,935,000 4,224,00n October . 174,224,000 161,303,208 5,620,129 6,712,000 4,153,000 151,327,000 117,958,104 4,881,516 6,059,000 3,945.000 November. 131,667,000 124,060,288 4,389,443 5,403,000 3,509,000 136,067,000 111,015,168 4,535,566 5,569,000 3,777 ,oon December. 133,347,000 100,235,740 4,301,516 5,099,000 3,376,000 138,613,000 104,436,508 4,471,387 5,052,000 3,823,0()O 2,152,716,000 1,716,930,297 2,046,348,000 1,640,025,198 Line Loss Ratio. 435,785,703 406,352,852 t..:l Percentage Ratio. 20.2 19.9', 00 1973 1974 GALLONS GALLOllS AVERAGE r.1AX IMUM rmm~UM GALLONS GALLONS AVERAGE MAXIMUM MINIMUM PUMPED SOLD DAY DAY DAY PUMP ED SOLD DAY DAY DAY January . 143,345,000 107,609,524 4,624,032 5,002,000 3,938,000 151,223,000 103,107,312 4,878,161 5,584,000 4,105,000 February. 131,752,000 101,527,536 4,705,428 5 , 161 ,000 4,119,000 123,918,000 99,660,528 4,425,285 5,830,000 3,671,000 Ma rch 145,189,000 105,357,296 4,683,516 5,255,000 3,925,000 146,312,000 106,615,432 4,719,741 5,576,000 3,529,000 Apri 1 139,769,000 99,213,224 4,658,966 4,993,000 3,923,000 148,186,000 120,042,032 4,939,533 5,452,000 3,630,000 May. 166,447,000 112,303,972 5,369,258 7,589,000 3,845,000 173,880,000 121,685,388 5,609,032 6,347,000 4,233,000 June. 270,841,000 164,378,984 9,028,033 13,328,000 5,057,000 219,588,000 143,246,488 7,319,600 10,297,000 4,697,000 July. 291,211,000 277 ,850,584 9,393,903 15,098,000 4,988,000 385,339,000 253,124,696 12,430,290 13 ,817 ,000 8,929,000 Augus t. 242,188,000 220,127,388 7,812,516 10,782,000 5,783,000 208,399,000 279,352,568 6,722,548 11,562,000 5,284,000 September 157,616,000 148,954,512 4,658,966 6,621,000 4,169,000 171,142,000 152,550,860 5,704,733 7,030,000 4,922,000 October . 154,196,000 110,132,528 4,974,064 5,539,000 4,348,000 167,042,000 136,665,584 5,388,451 6,708,000 4,799,000 November. 142,908,000 111,651,716 4,763,600 5,069,000 4,053,000 148,827,000 114,021,380 4,960,900 5,839,000 4,052,000 December. 139,320,000 114,438,016 4,494,193 4,894,000 3,472,000 148,762,000 11 0,773,564 4,798,774 5,351,000 3,880,000 2,124,782,000 1,570,551,070 2,192,618,000 1,740,845,832 Line Loss Ratio 451,236,720 451,772,168 Percentage Ratio. 21.2% 20.6' ------------------- SALINA, KANSAS WATER DEPARTMENT OPERATIONS ~ co January . February. March Apri 1 . May. . June . July . August . September Octobe r . November. . Decembe r. . GALLONS PUMPED 148,761,000 135,269,000 146,204,000 150,985,000 197,200,000 180,690,000 329,644,000 292,049,000 180,057,000 182,745,000 150,432,000 147,456,000 GALLONS SOLD 119,538,628 107,494,332 106,551,852 95,909,308 137,370,200 151,644,284 181,505,192 253,438,856 166,545,216 152,188,763 138,283,508 110,793,012 2,241,492,000 1,721,263,151 Line Loss Ratio . . . . . .. 520,228,489 Percentage Ratio. . . . . . . 23.2% 1975 AVERAGE DAY 4,798,741 4,831,035 4,716,258 5,032,833 4,870,483 7,305,900 10,633,677 9,420,935 6,001,900 5,895,000 5,014,400 4,756,645 MAXIMUM DAY 5,387,000 5,553,000 5,608,000 5,874,000 9,308,000 7,199,000 13,321,000 14,190,000 8,894,000 7,190,000 6,006,000 5,405,000 MINIMUM DAY 4,388,000 4,474,000 4,089,000 4,133,000 5,031,000 5,235,000 7,114,000 5,482,000 4,642,000 5,052,000 4,066,000 3,811 ,000 VI. WATER AND SEWER RATE SCHEDULES There are 14,406 water customers and sewer connections in the City of Salina, Kansas. The present water rates, effective January 1, 1973 and the present sewer rates, effective January 31, 1962, are as follows: BASED ON MONTHLY USE EXCEPT FOR THE MINIMUM AMOUNTS ALLOWED ACCORDING TO THE SIZE OF METER RESIDENTIAL AND COMMERCIAL CONSUMERS INSIDE CITY: *First 2,000 Cu. Ft. (iLl 39~ per 100 Cubic Feet Next 28,000 Cu. Ft. (it 27~ per 100 Cubic Feet All over 30,000 Cu. Ft. (it 24~ per 100 Cubic Feet Monthly minimum charges are as follows, based on size of meter installed: Size of Minimum Cu. Ft. meter Charge allowed %" $ 2.00 300 %" 3.10 500 I" 3.90 600 1 %" 6.50 1,000 2" 7.95 1,100 3" 14.75 2,000 4" 77.00 25,000 6" 110.00 30,000 8" 125.00 30,000 * Multiple consumers served by a master meter are charged at 39~ per 100 cubic feet for all water consumed in excess ofthe minimum. Approximately 7% gallons per cubic foot 30 I I I I I I I I I I I I I I I I I I I BASED ON MONTHLY USE EXCEPT FOR THE MINIMUM AMOUNTS ALLOWED ACCORDING TO THE SIZE METER RESIDENTIAL AND COMMERCIAL CONSUMERS OUTSIDE CITY: *First 2,000 Cu. Ft. (iLl 48.75~ per 100 Cu. Ft. Next 28,000 Cu. Ft. @ 33.75~ per 100 Cu. Ft. All over 30,000 Cu. Ft. ({I) 30.00~ per 100 Cu. Ft. Monthly minimum charges** Size of Minimum Cu. Ft. Meter Charge Allowed %" $ 4.00 300 %" 6.20 500 I" 7.80 600 1 %" 13.00 1,000 2" 15.90 1,100 3" 29.50 2,000 4" 154.00 25,000 6" 220.00 30,000 8" 250.00 30,000 *Multiple consumers served by a master meter are charged at 48. 7 5~ per 100 cubic feet for all water consumed in excess of the mInImum. **Minimum charge for Rural Water Districts is 125% of the inside city minimum. 31 PROCEDURE OF DETERMINING FEES The sewer use fee is refigured annually and remains constant starting with the July billing through the following June. RESIDENTIAL: For each residence ofless than four units served by a master water meter and discharging waste to the sanitary sewer system, the sewer use fee is based on the average monthly water consumption according to the meter reading of January, February, and March. The sliding scale of the attached rate schedule applies. MULTIPLE DWELLINGS SERVED BY MASTER WATER METER: The sewer use fee for licensed Apartment Houses and Mobile Home Courts offour or more units, served by a master water meter or meters, is based on the average monthly water consumption according to the meter readings of January, February, and March. RESIDENCES NOT CONSUMING CITY WATER: Residences not consuming city water, but which are served by the sanitary sewer system are charged a flat monthly fee of $1.50. COMMERCIAL AND INDUSTRIAL: The sewer use fee for Commercial and Industrial water consumers served by the sanitary sewer system is based on the average monthly water consumption of the previous calendar year. The sliding scale of the attached rate schedule applies. COMMERCIAL AND INDUSTRIAL CONCERNS NOT CON- SUMING CITY WATER: Engineering surveys determine the sewer use fee for commercial and industrial concerns served by the sanitary sewer but using water from a source other than the city. SPECIAL ALLOWANCES: For consumers where at least 25% of the water consumed does not eventually reach the sanitary sewer system, allowance is made in determining the sewer use fee. COMMERCIAL AND INDUSTRIAL CONCERNS CONSUMING WATER IN ADDITION TO CITY WATER: Engineering surveys determine the sewer use fee in cases where water consumed from other sources exceed water purchased from the city by at least 25%. 32 I I I I I I I I I I I I I I I I I I I If the quantity or type and character of such sewage discharged into such system shall render it difficult to establish a fair and equitable sewage service charge, the customer shall at his sole cost and expense install and maintain in good operating condition suitable meters or measuring and sampling devices of standard type and design as required to determine the characteristics of the sewage, at the appropriate point or points as are necessary to properly measure the customers' sewage discharges and shall permit the City to read meters, measuring or sampling devices, and sewage charges for such customer shall be established in accordance with such metering records and/or sampling devices. OUTSIDE CITY RATES: Outside city rates, except in cases of a special contract, are double the minimum plus 25% additional for all in excess ofthe minimum. 33 CITY OF SALINA WATER AND SEWERAGE DEPARTMENT Sewer Use Rates Effective Jan. 31, 1962 * Inside city rates except for multiple living units offour or more in number served by a master water meter: First 500 Cu. Ft. or 3,750 Gals. $1.35 per month minimum. C<:127(/ per C Cu. Ft. or 36(/ per M Gals. Next 500 Cu. Ft. or 3,750 Gals. C<:l 22(/ per C Cu. Ft. or 29.33(/ per M Gals. = $1.10 Next 1,000 Cu. Ft. or 7,500 Gals. C<:l 20(/ per C Cu. Ft. or 26.66(/ per M Gals. = $2.00 Next 3,000 Cu. Ft. or 22,500 Gals. C<:l 16(/ per C Cu. Ft. or 21.33(/ per M Gals. = $4.80 Next 15,000 Cu. Ft. or 112,500 Gals. C<:l 12(/ per C Cu. Ft. or 16(/ per M Gals. = $18.00 Next 20,000 Cu. Ft. or 150,000 Gals. C<:18(/ per C Cu. Ft. or 10.66(/ per M Gals. = $16.00 Next 40,000 Cu. Ft. or 300,000 Gals. C<:16(/ per C Cu. Ft. or 8(/ per M Gals. = $24.00 Next 70,000 Cu. Ft. or 525,000 Gals. ((14(/ per C Cu. Ft. or 5.33(/ per M Gals. = $28.00 All over 150,000 Cu. Ft. or 1,125,000 Gals. ((I 2(/ per C Cu Ft. or 2.66(/ per M Gals. *Multiple living units of four or more units, served by a master water meter, effective July 1, 1963: First 500 Cu. Ft. or 3,750 Gals. $1.35 per month minimum. (u 27(/ per C Cu. Ft. or 36(/ per M Gals. All over 500 Cu. Ft. or 3,750 Gals. (u 22(/ per C Cu. Ft. or 29.33(/ per M Gals. Outside city rates, except in cases of a special contract, are double the minimum plus 25% additional for all in excess ofthe minimum. 34 I I I I I I I I I I I I I I I I I I I The Gross Revenues produced from the water and sewer rates at Salina, Kansas for the past five years are as follows: WATER SEWER COMBINED WATER/ YEAR REVENUE REVENUE SEWER REVENUE 1971 $ 651,739 $372,516 $1,024,255 1972 630,858 384,634 1,015,492 1973 965,012 390,624 1,355,636 1974 1,003,236 366,817 1,370,530 1975 1,041,120 399,484 1,440,604 The gross water revenue has increased 6.26% since the water rate increase on January 1, 1973. The gross sewer revenue has increased 7.2% over the past five years. The gross water and sewer revenue combined has increased 6.26% since the water rate in- crease 1:..1 1973. Operational expenses for the combined water and sewerage system (exclusive of bond retirement payments) for the past five years are as follows: YEAR OPERATIONAL EXPENSES 1971 $ 769,142 1972 758,226 1973 856,149 1974 1,019,942 1975 1,162,342 The operational expenses have increased 51.12% over the past five years for a 10.2% per year increase, and 13.96% from 1974 to 1975. Sewer Rates Based upon the gross revenue generated from sewer charges in 1975 in the amount of $399,484, the additional income from sewer rate increases indicated would produce the following gross Income: Sewer Rate increased - 35% ($1.85 minimum) ....... .$539,303 Sewer Rate increased - 40% ($1.90 minimum) ........ 559,277 Sewer Rate increased - 50% ($2.00 minimum) ........ 599,226 Sewer Rate increased - 60% ($2.15 minimum) ........ 639,174 Sewer Rate increased - 70% ($2.30 minimum) ........ 679,122 Sewer Rate increased - 80% ($2.40 minimum) ........ 719,071 Sewer Rate increased - 90% ($2.55 minimum) ........ 759,019 Sewer Rate increased - 100% ($2.70 minimum) ....... 798,978 35 Increase in sewer rates over the present rates would result in the following rates: Present Water Sewer Increase Consumption Rates 35% 40% 50% 60% 70% 80% 90% 100% 0/500 $1.35 $1.85 $1.90 $2.00 $2.15 $2.30 $2.40 $2.44 $2.70 500/1,000 .22 .30 .31 .33 .35 .37 .39 .40 .44 1,000/2,000 .20 .27 .28 .30 .32 .34 .36 .38 .40 2,000/5,000 .16 .22 .23 .24 .25 .27 .29 .30 .32 5,000/20,000 .12 .17 .18 .18 .19 .20 .22 .23 .24 20,000/40,000 .08 .11 .12 .12 .13 .14 .15 .15 .16 40,000/80,000 .06 .08 .09 .09 .10 .11 .11 .12 .12 80,000/150,000 .04 .06 .06 .06 .07 .07 .08 .08 .08 All over 150,000 .02 .03 .03 .03 .04 .04 .04 .04 .04 Water Rates Based upon the gross water revenue for the year 1975 in the amount of$1,041,120, the additional income from water rate increases indicated would produce the following gross income: Water Rate increased - 35% ........................... .$1,405,512 Water Rate increased - 40% ............................ 1,457,568 Water Rate increased - 50% ............................ 1,561,680 Water Rate increased - 60% ............................ 1,665,792 Water Rate increased - 70% ............................ 1,769,904 Water Rate increased - 80% ............................ 1,874,016 Water Rate increased - 90% ............................ 1,978,120 Water Rate increased - 100% ........................... 2,082,240 Increase in water rates, inside and outside the city limits of Salina, Kansas over the present rates would result in the following rates: Residential and Commercial Inside City Increases Present Rates 35% 40% 50% 60% 70% 80% 90% 100% -- First 2,000 cu. ft. (it391l per 100 cu. ft. ........... 531l Mil 581l 621l 661l 701l 741l 781l Next 28,000 cu. ft. (It 27 Il per 100 cu. ft. . . . . 361l 371l 401l 431l 461l 491l 511l 541l All over 30,000 cu. ft. (it 241l per 100 cu. ft. ....... 321l 341l 36~ 39~ 411l 431l 46~ 481l 36 I I I I I I I I I I I I I I I I I I I HMonthly Minimum Based on Size of Meter Installed" Present Rates Size of Minimum Cu. Ft. Increases Present Rates 35% First 2,000 cu. ft. @48.75(l per 100 cu. ft. ................. 65.80(l Meter %" %" 1" 1%" 2" 3" 4" 6" 8" Charge $ 2.00 3.10 3.90 6.50 7.95 14.75 77.00 110.00 125.00 Allowed 35% 40% 300 $ 2.70 $ 2.80 $ 500 4.20 4.35 600 5.25 5.45 1,000 8.75 9.10 1,100 10.75 11.15 2,000 19.90 20.65 25,000 103.95 107.80 30,000 148.50 154.00 30,000 168.75 175.00 W% 00% W% ~% 00% WK 3.00 $ 3.20 $ 3.40 $ 3.60 $ 3.80 $ 4.00 4.65 4.95 5.30 5.60 5.90 6.20 5.85 6.25 6.65 7.00 7.40 7.80 9.75 10.40 11.05 11.70 12.35 13.00 11.90 12.70 13.50 14.30 15.10 15.90 22.12 23.60 25.07 26.55 28.02 29.50 115.50 123.20 130.90 138.60 146.30 154.00 165.00 176.00 187.00 198.00 209.00 220.00 187.50 200.00 212.50 225.00 237.50 250.00 Residential and Commercial Outside City Increases 40% 50% 90% 100% 60% 70% 80% 68.25(l 73.10(l 78.00(l 82.85(l 87.75(l 92.65(l 97.50(l Next 28,000 cu. ft. @33.75(l per 100 cu. ft. ................. 45.55(l 47.25(l 50.60(l 54.00(l 57.35(l 60.75(l 64.10(l 67.50(l " All over 30,000 cu. ft. @ 30.00(l per 100 cu. ft. ............. 40.50(l 42.00(l 45.00(l 48.00(l 51.00(l 54.00(l 57.00(l 60.00(l 37 VII. COMPARATIVE WATER AND SEWER RATES FOR CITIES IN KANSAS The following table shows a complete breakdown of water and sewer rates for Independence, and Coffeyville, and proposed rates for Pittsburg, Kansas. Also shown are the minimum water and sewer rates for the City of Newton, Kansas, and sewer rates for Emporia, Kansas. These comparative rates are being illustrated as Independence has a Water and Sewer Revenue Bond indebted- ness of $2,030,000, Coffeyville has a Water Revenue Bond in- debtedness of $3,060,000, and Newton has a Water and Sewer Revenue Bond indebtedness of $2,310,000. Emporia is issuing $2,500,000 in Sewer Revenue Bonds. Independence Water Rates (In Gallons) First 1,000 @ $3.30 = $ 3.30 .........................$ Next 9,000 @ .90 = 8.10.. . . .. .. .. . . . . .. . . . . . . '" . . .. Next 15,000 @' .75 = 11.25 .......................... Next 75,000 @ .70 = 52.50 .......................... Next 900,000 @ .55 = 495.00 ........................ All over 1,000,000 @ .50 = $500.00. . . . . .. . . . . .. . . . . . .. 3.30 minimum 11.40 22.65 75.15 570.15 1,070.15 Coffeyville Water Rates (In Gallons) First 1,000 @' $2.00 = $2.00 ..........................$ Next 1,000 @, 2.00 = 2.00. . . . .. . .. . . . . . . .. . . . . .. . . . . .. Next 8,000 ((l 1.50 = 12.00. . . .. . .. . . . . . .. . . . .. . . . . . . .. Next 40,000 @, 1.35 = 54.00 .......................... Next 50,000 (ii 1.00 = 50.00 .......................... Next 400,000 (ii .90 = 360.00 ........................ Next 500,000 (ii .75 = 375.00 ........................ Next 1,000,000 (il .40 = 400.00. . . . . . . . . . . . . . . . . . . . . . . . 2.00 minimum 4.00 16.00 70.00 120.00 480.00 855.00 1,255.00 Minimum . . . . . . . . . . . . First 2,000 gallons. . . . Next 5,000 gallons. . . . Next 10,000 gallons .. Next 50,000 gallons .. Next 100,000 gallons . Next 500,000 gallons . Next 1,000,000 gallons Pitts burg Water Rates (In Gallons) Present Proposed Coffeyville Independence $ 2.35 $ 2.50 $ 2.00 $ 3.30 2.35 2.50 4.00 4.20 4.75 5.80 8.50 6.90 8.75 11.30 16.00 11.40 38.85 51.40 70.00 28.90 72.55 97.60 120.00 75.15 281.35 391.40 480.00 295.15 523.25 741.40 855.00 570.15 (Based on 2,000 gallons) Independence Minimum . . . . . . . . . . . . . Coffeyville Minimum. . . . . . . . . . . . . . . . Newton Minimum.................. Pittsburg Minimum (Proposed) . . . . . . . Water $4.20 4.00 2.80 2.50 Sewer $2.50 2.25 4.00 3.40 Total $6.70 6.25 6.80 5.90 38 I I I I I I I I I I I I I I I I I I I Emporia Sewer Rates Effective January 1, 1977, the following schedule of sewer charges will be implemented at Emporia, Kansas: (a) A monthly minimum service charge for all metered users in- cluding the first two thousand (2,000) gallons of water use is established as follows: Meter Size Inside City Outside City 5fs" $ 3.30 $ 6.60 %" 5.50 11.00 I" 8.75 17.50 114" 11.00 22.00 1 '12" 13.00 26.00 2" 19.00 38.00 3" 42.00 84.00 4" 69.00 138.00 6" 138.00 276.00 8" 205.00 410.00 Exception: Those single family residences with meters larger than one (1) inch will be charged at the one (1) inch rate. (b) Residential Metered Quantity Charge: Additional charges for residential and educational, religious, public, and charitable classification as defined in 19-304 above shall be based on eighty-five per cent (85%) of metered water in excess of 2,000 gallons at the following rates: Inside City $0.35/1,000 gallons Outside City $0.70/1,000 gallons (c) Commercial-Industrial Metered Quantity Charge: Additional charges for all those not included above shall be based on one hundred per cent (100%) of metered water in excess of 2,000 gallons at the following rates: Inside City $0.35/1,000 gallons Outside City $0.70/1,000 gallons (d) Flat Rate Residential: All single family residence users as defined in 19-304 above not having an approved water meter- ing system will be charged a flat rate of$6.60 per month for use of the wastewater collection and treatment system. (e) Flat Rate Commercial-Industrial Users: All commercial- industrial users as defined in 19-304 above not having an approved water metering system will be charged a minimum flat rate of $19.80 per month with a quantity charge based on 100% of estimated usage over 2,000 gallons as approved by the City Manager at a rate of $0.35/1,000 gallons. 39 WATER RATES The following indicates water rates only for the ten largest cities in Kansas, other than Kansas City, and also three graphs indicating both water and sewer rates for cities in Kansas. City Lawrence. . . . . . . . . . Hutchinson . . . . . . . . Salina . . . . . . . . . . . . . Leavenworth ...... Manhattan ........ Emporia . . . . . . . . . . . Pittsburg . . . . . . . . . . Junction City . . . . . . Topeka . . . . . . . . . . . . Wichita ........... Cost/ Cost/ Cost/ Cost/ Charge Gallons Cost/Gal. 5M Gal. 10M Gal. 25M Gal. 50M Gal. $3.82 2,000 $0.0019 $7.19 $12.82 $28.65 $51.59 2.50 3,000 0.0008 3.70 6.50 12.50 22.40 2.00 2,500 0.0008 3.56 5.90 12.14 16.73 1.85 1,500 0.0012 4.00 6.55 14.37 26.37 2.00 2,250 0.0009 3.92 6.80 13.93 23.50 1.50 2,000 0.0008 3.00 5.50 13.00 21.75 2.35 2,000 0.0012 4.75 8.75 20.10 38.85 4.55 7.13 10.80 21.83 39.11 2.30 1,500 0.0015 5.56 9.36 18.16 32.83 2.50 3,000 0.0008 3.76 6.28 14.38 22.06 40 I I I nf r ~ r~', ~I' " i ll" ., I, 'T.! It I "W '1 ",,'-:11 ..........,. t~:~.::::.:;; ! _I ::'::~:1 i u ......",. I ~i,. :",,- - ....... -~ ...:1 AM.'U ....... . .,.~. ~ t ~':::~ ~ . ~.u"...". . ~ \.~:.~~,.. I ~I,;,i':".i~.- t ~.lj~::.....& . .' T,II ,r.]. :i'~l-.t ~ :t'f', 0-- : .~~"n.., ,A.U:t ......... i:II~~ I : illl~.~~:gl ! ~ :::: :! 1~~ ,~ ::::.;;:~ i' ._...~ ~ I ........,_.. -ir...~ tj'~ .....-. -D!J.~ ....., . W;',!.,. ;- . . I '1 . . . ~ - ~:I' ; ! : : \-; ~...:= i ; .....::= . . ~.......... - ~. I":.'............. ! I ; r . ~-:::.: i.!...o ........ ! I i.-L.i......' ~ .. Itt-'l':'~ '~ in: : ;~~ .. . i ~=~ L -i ~w I 1 -j I....... t. .. . ;-i' ~ J: :"'... --P tT H- J'II~ I-!- -I' 1-: . r::;: 1 !...., L J'D. .au ..,., I ,. r~..r,::::~= : i. L-' ,J(ll--~:'i t '1 ~t', .r!..'...... ,- 1 :>>.:.-::~:' i. 11 i . . r L~:~':';'';' I' :,' I ~. ':~~~l . T j ,'i'h"', ",:. f -i rL-:;:::i 1 IQI ",,,...... ,-: '1 1~f'i3 i: I . tt .'-::'':~; . ~ :d1+1', ,':,' T , :a T;..L ,i - - ~~!~;E: !": r--, ":u__ ~......' 11"____111 I: 'J "'...-. t- 1 ' r'-:'~ . I : ~ r.. n.,. t; : ~ It -~:.:.~::.:' j: 1 rftI;~;" '18, 1 ] ::. ..i I I ';::"J__, , It' j~ll! Jii: w ~ ", I I I I ~ -- I ,. .!. + Ii [ 11 ; 'il. . 1 I L . +tt i~+1 1.- I ,- ,...,.( ii I · i.1 I t ,+ ' .1. III - - : i Ii H 'Iej 1j t ~ i ~l".!J'~ . L_ --r- t I ,. --ll'~'- . t- t- , . . .. .I! I ' I :l: ., ;Ii I . +. II .. ~ IIII I t- . I. . I ~II + . I t- , , 1 I 1+ 1 .1 ,! ' ; I I ." 1 II ! ,III' 1 1 'I I I. . 'I!. _ .Hg -- .1 ~~~ --__ I .1 I + -. I .1 ,. .-.. .- II t.. H ! .,.1 i I ! t t t. r' + +1 <+~H ' . .r J t 11 ;-rj j. ~+W- ~_ -; .-!:~i.!. .-.: -~' j-~' . I 1 r j +; ; ~ I , ,fT., .. I -I- =t " t . I ! =- 0::; ~Il. -ill 1 . T : ~~tW- l' . + .. -- ~ t iC1i.d:- ..1 - - - .:!..' 1'''',1 ,"It j-T -.1 t I '4,1 t I f 'O::;+Ii: i :1 .1 I : !a:!tl~ }:- 1 :W! ~t t : ~;l ~ ~.1. I. .. t- -- ! 1 ! lLl' 'IiI .1+ .. iril !I~J T . I. 1 ;o;!, il~ ., l~t It I 1~. t !I-,' n I~ ' -.. t~ i'. . .i . I I II 1 . ~ .IT IIH ! I. , i t t ., I 1 J'.'rm Jil t- l- t 1 ; , , ! I I , r I ...L t- ~ .. ~. + . ~ t , t - . 1 i I r T 1 , I 1 1 I I - -. . . . . .. -- - . .i I .j I I ....1 I ii I'" + ~ . "I" I I .. l r u Hi i1+ ujlV 1, f1 ,If In I r l+n lli I I I I .~ C\ " r 0 'I~. 11- ., I 'lit I 'I t " it ffi1f - Lo t l , ... . '" _ =F - t t- .-. 'J ~ , , t. ,. :- H T- l "ilifPJ r J t t :~~:.~..;, '. .L L r&:.~i; i,i., ...... 1 i p T ~.:.-::.:~ . . .. I!:'q "I:::: .. ~.... ..."...,. t ~r, ~~:l.".:~::. . H H-- r .,.,.........' I 1+ " . J j'. r ~ ,.;J ~:::.::~~ ~ ~, fI' "r:-::. ~;T';=-!:' -, 'f H ~ T" ~ t :- - 1- ,. ~ I I : ~ ~ !- ~ -::.:--::::: t. I. i-- of L;+! r- l. ~ f ~ . :.. : I'~',......., :1 . ." ." ,L j , 'I t 'f +.. I + .1. , r' r&joo~t-~" t 1 +11 , rr ,=f' rc r-n'i1-:-r,~! : , - - '+ i ,d ; , l T r '- '. _ ~I~' ~:.j_1 :j' .+ + ',Q:.j. ,'-!-IHr ~ -+;:;-L't;t,~~L'L: r . ~ ~ .~ +- H- - . ':f::t ~ ,~ -~ -. . =....... I +";. ~.. l. I+.t - ~ t i -r-'+- ~ T!I"~"~J:::~ ; + f r' - t,.f-l- H . 'to -; ft' 'to ,i:' l:'f" :'-;;:'~ . ..I -+ -+ . ~[; h. [.../110.,. +~+ . r -,- - - . t ~ t t.'~ I I: .:MI...., "-t r - .t. ~l.l ( t"! t. " - l~:' r~)'~I::::::~ : .' -, ~ - .~ . . - 1_. ~ 11 r . I IU'f ":1.":::: I '- -j-' .. _~ "1_ _ . -. _. ~ -,.. us ~ c........, f i : t+. -~-j: ~4C:~'=: + - ~....- I" t +.' ;" . ~ l~..~.u...1 r' _~ t:;r .,~ ;4t",: .~. EdE~ - ! + ~ . _.4. . -f.- ...1--1 ; ~-.. l-: I~ . ~ 'U.:t ....... -~ +- r j__ ~I- -I '-j .,. -! - "I ~ 'f, c, ';, rf'f"::!':'i' i .~: + "..~" 1') I_., . ~:t . J .. H; It'..~. ,;; C! 't!Hf~f: I' ; 1+" .:I ,.l. 1 -t 1 1- '1+t + ': t:"I'~r"'1 , ..::j: t ..1. .: r r+H 1= '~. ,:' ii..2 ~,~;~ I :..:.. -i' r -t r' 1 r j.. _1 =r 1 T- . i ~'I I t ..in_I:.':; . . ! T L L T I I I 1 rt'r-' -J.l'~ ...... ;. t:L! ' '1,.;' -'- 1 :'j: ...~;O.: .' r ! 'r :' ~ ~ I "t ,. , 1 ~;., : "!' ....._. : T + 1+ ~ t. rr ~,: . ':::Jo.~;~ ; ';" t I ' t-'~ f+. j. Innon".... . -, ':f r-, . f-:~ 1112 e~:::::: . I. '1- r- i + ~- =+ ~ l ; --l. I. ~ ,"'''U,J,UU I I J . +. 1- ~ ", f'- I ~ ::!:: 1- ~~.I=~: : i K I ., h- -:' ~ ~ :. I . ,...... . ~ f Htf~f':-J.t 'J r+. L~::1..1:::e~ ._j'l 1 !. "tmll. I ~':2i" ~t{:~ I : i 1 1 II ~ . ' ! +' (,' Tf? tif'trr 1 .1: :I~" ~r~ ; '1:11 ~1:, f.} 11 tT, 'f::;r , .. t- +, " j t ,1- i 1 ~,:.rHH t . - I' -~ I -I.t '1! :t... 1 1-. .~:;: tt~ ~-I ~.- ~r'l-r . I i ;- _1- ~ ~~:I~..l~:~~~ : T~-i I Ii 1\ r -IL 'l r::::::;:~~; I'; f -1 + Ii ! ~ i I .i ~ T ;.~~:~, , : ' ! I 1- -H- ' -:-- 1:- ~- ~ r..tl~::o~: ! i "Ti"fll. ' m"1 t1 ::.::-::; . ~ , . - It, r. L.i I .;If' ~::.::"~: :.; I .- - t I' ::r~1IJ1.".1 ," - H Il.... . ~ g I ..j......"'" 1 f It- '.It I :p : ~'~..1:! - L 1,- 1 7~tJ .r'.J;,I..~~ 1 : t' t!'. r 1m' :u.?...r'i~! , , r .. rT!" r+~ t t~j~j..-t' I ., I ~ ., ,. ; ~ . :'~+~'f . t;: Jif' J! -;- , : I -I, I! I + T I 1. 1 I Ltio':,~. .. u i-t ~ t + + !i I ,; '.~ ~Cj::::~.~,!~ i - . H ':'j 1 -r, 1_" ?....." ....UI... . ! . i I'H~I \. -t H-.. tilL" n.....Ioll( . I . : -. - ," _! , , ~ .:, l~+~ :,~';~~~ I; ~ .Li+. .:r 1. ~ .L ,- .,- I :_- ,J"~,..:'~:_~, :.: I . I ~- I,.., , '+ ~ . .-Y-t: ..:.I:I'..:L::~:::~ -~Ti r I{ i H~l+ t . -r ~- -~ \:F~f' ; ~ I :~~=~~~~~:;~ . ~ ~ . 'f .1 ~ 111+ " 'r: ': :: i 'I"'''''''' I; 1 t I - I-t .1.,. " - ':- " "..... . I ' , 1 ! I tIt "!. I..! .10 I I ' '11-+ ... . ":i:~ i tl . - 'j ,,,. "'... I, l ,I-I' t . f f' I 1 00""". I~ I. I T r 1 . Il t + t-. + g W:;ri~" ~ ~ I: '~:,tll ,t~'T 't1.T!l'~lit;l~l:.~ I, [ r I t I', T j ~ 'r i I I, t,,; fu' ,; i 1--1 16' 'm: . ~ ,', T +~t'6' " _. ., ;11 ; I' I:i: I I : ! l' ~: I 'H ,~~ 8 ! t r " I " i fl' I I' II I ..1 II b . , , I,! : :; t I I I : 1 J j : <> I ~: I 11: , , ,I ' ,I"", . II I ' , II I I I + f "t- t I . . I' tll i t' , j ., . !. , ." T ~ .1 t t, t .,- :l~+" Hl ~ -~ if. : ,: , . +-, =t ~ I T +I:t$~ B:tnt1.- f.. ,~~,. ' ~ .., "~~ : I" ~ ~_; W ., f ' H~f-j,~ r H- - f .'t~~:!~If t,. '. h- ,.... '. .f.. -1-" " +., -I- rt. T ' : -t .'. t r t- t, ,- I.. L ;-1 i- ~ ... _1 ~ f , '- -I- l -+' h "L "t, -+ + f.L .f.. f- +, L- ,l. ~ 1+-- " ,+ "r; , + + ." ~ + _. -'- 'I.f Ii ,.1 HI' H .l. . t .~ -+ +t -I ,.; oj + ,I .H+ . - . t 41 ~ "... t- t .~. L -+ - 1 ... t .. - t r 1- ,. " C>tf +i+ -;- '.' . + 'f , -t _. ~' , i ~ I! ,1. t " . ~.~! ',: '~, ,',', '. ;' I", I ! "1.' ',' ,! I ~ Ii,' +"" "~ ,: " 1 :.I~' , I~ ~. t ~~ + ft Pi~; .~ ~ t-.. t ~ t ,t tt ; -t ; ~ iff t I f ti :~ff +'I~~; '.+ ~ .I~ I .' ;.:,~ 1 j t~ f.i +! .:[ ; I :: l:r . i +::f: I L" .. 1 f:; 'f f : : ~ ~ ':',:;1 '~~t~~lj~-'. .f- j,., ,;~ , ! ;1 'Willi gj,i'l T ." . U -I- f'~ '1: '1 m:j'f5~;'tf =T. I ,,:1-- . ~t t -+ I . ... -+ ~I_:.I~ ::=t1T ,I H - ;. ,~t +. .1 'I I I.H ~" t: ~:l ~ ~ I !.' , i -I- , 1+ :t : ~. -f~t:l' '~;L f'eH-t,[f:I:~_dltrtttlj .:'+ ' . 'j I "11 I- . III T JI n. t j IITi 1'-' ; t:f-' ,. I 11 I I +'" 7, i} I' I H f 'j. t', .j:i " . +'+,} . ~~- ~Ii f r' li'l.l- J t,., I -I '. r t ~p 'I ~T- , -Ifl H . ! 1+,.,.-1 i~I.Lb,;lf. ,1+ 'f,' 'It~. I. I' J 1,.1 "I ~ ~ T -I,,, +-. 1+ .,- ,H 1++ ,Ft:.f.1f-i-'; I..'. II if-II.lf T I +- 'r j II -' , . . 11. -I 1 ,i +. 1 -!: I I T I , ' f' I r 11 I 1.:j: IT,' + '. t' i ~ :LLc t ~ f . 1 ,. Iff 1"" ,-, ,', I! I -I- -l-' , i i -I- T 1-_ J i ,;1. .11 i J ~ I I .t ! I ! '1 + . .l i .;. 1 '~, +:j: L- I +~. ' '.;. ~ 't ~ tr 1 ~ +: 1- I I ,Ml It ' ~ -r r ' , 1 , I L II, I , j I ~ .1. III 1 4'LT~tt.+r'I IJ'J,.l. ~ + ,; i : . ~ T j i , : : ,~. J [l . 1 ! J T 'll,r',1i",~'.l, .Lt.'1 , 11" r~ [' f :11 ~ r ~ f ~ t ['. t ;I~ ;.j ;. ~ 'It'l' l 'I . -t . II 'f I ~I+l -r tl : I ; ~ : 1 .; -; 1: T I I, 1 'r t It Ii j I G. 1 ,t ,.: -: -: ; ~ · ' , 'I 1 , ' Ii' r T 1 1+' I ... ". Itf ' I .'- ~ I i' I' +I--~..L L ;~l .:.r--:b- 'I~-- :t' j+ I 1 J I ~, ,'0 . , ' I 1 ! I ~ . I ,lC;>. ~ . ,0 " .0. I fj <>, I I,!: ~ j I !"" : I' ~ '''" ;: : "I' i I ~ r r "'/ ; ., I:, I 'I: 'II : '! l: !: : 'I. I' I !, ,i i' " I' I' I I I' I: ,I i '" r Too .i l' j .1- t ' ~ +. ~, I. .+ t +I:ti '+ L.. t:f .; , + t ,I f:- . 1 j j J , I I 42 I I I ~! llfll~ ~;! ~H:q~'~m:~11i'~r.lt4 It;~L ~llfj:lr;~ 'ltlljl!fi.I::~I~r~~'i. 1 ;l'l~iJ;'I: II 111' 1+1'1 _1+, .'" IH. I' I. .' ,L ri 'jl. r t +r.' ,.j.......... . II II I-! I. I I. -f. t. I l' .~ , !.....:-t . ' . '. . . I. I ..,tAAU,..: . I , I I II I 1 I-l ! ~ : f ! , I "' . I IT L 1. -I ~,~ ! t J I I . 1 l- I . II t-~ '.~~-=;:'J~i~ f i I~ 'r 1f ~.~ J~. I : ll.;"mHI -=.: r I J f 111~.!-t:-- ~ f f:U t. ftfii't .:.. 11+ :j,;T,lio~ ::(. .~;m: -- li-4- t-~. :...L~t[:-t~-f:f+-lll!. .;.. fJ+.'ll' !Il.fflt .~:~~;~; 1 I ". i" i' " . . , ,rr.. d g.' ! I il-, ,i 1 I : I I, : +, ~: ""-:.;. f' f i i -': i: ~. .~i:" . : I ,'k' tt;.. T. ! II t 1 -/- "~'I: . :.~:",'.":.~ t t j-; 1 'fi;:-:-~ Jl r -+ j' 'I l=~~irr-'-,l ~ .,.....:;:~. .. . ++ I .~>-! L ~.t f t1.:~.~ 'rt _ 'Lti! ! l-l: . I -' 11 f . :t,. u!: :l~:':::::: ,. ++ .it., :+Lt+ "I'::~~"":'~I..I.LLi":t +r.;.::~+=.:..~r-:f;~ ,:;.t~~:w. ~ t: ""I~ "!-'1 t- .t-;" ~ . t.. r ~ ~ .- 41: ,. r -1-- .: 1-: !-- 1 ......... -t r.t i .; : f ; I 1- ;1""7: ~ . 'UO"'& , I ~ ..,.; i 'II! ,!- I -r ... ~ +" . t. 1 i.'" ," t! L ! i -!. ii" .:;. J 1:1.1. I :..e..I::,.:.:7 .... ..... f f! .II.I!. H!.! ! ! 'j l' t- I".. + - r I .' ; + T i ,I , r . t '. j. 1 · 1 1 Li- ,q L1. . .;., .l~' +~ 'II!~:;H.++!-t- irl+' Illt+,t111.1): 'I' ,.!t!L-!+~'i'7rt'hi:!" . +~ "'i Hl~~ I -t -l + ~ ~ L, ._~ t!1 t-.c i : (Ii. i: 1-1 l'{ 1 I ; I : b\J , I ..., L r I, <0; . . ..: ., - . .. , 1 '.. I L, ;! r;' I 1.: ~ f + -+ li.".1 I.! II, ,r. .~;::::::...' I I: I -II 'rl' I"': ",-.,.". L' t i.';lll';.; .if' ~:..:t", I, r1'~' '.t....-'...~, ... : . H L !: i t T! -k i; ,; ~ 'HI!, 1,1 II l' t~1 Ii -1- I . .~ I.~ ii,'; L....~:..~~: .. , ~.~ ~ ;_.l t-i ~--r ++ 1-+ fl. , -~-i 1 I ~ I l II i- ~ .J ,; f ,.i-+ i.! i-:t L[lo UD IJ:~~::~~ 1 ~ .' I ~ t; + " + L ! t' I, ,. r +fFt . .~ 1 t + +:I!I lilm t t 1 .:...... i I f~ I III ~ ....::::;;:,' . 1- t + .. t .. ~ ; " + I -;,+.l... , " 11;'+ ". -'" I" 1-1' ;;.; 'I:-:~ + f ; !' '~f~! ~ "..::~ , r L i.;' ~ ! ,.l.t- + ;~, It. + ,j 'It! " N ,1 ., t II Ii i.:ti+ I J .L#tl: i~ ...~",).~~:: . ! Ii i -~ + ,. i: .. it + + I- I, ~ ,t I . .L I~ I I t.j.. TtT + J T , ~l: ........ ; "t r'l- ;,; H~ I !, ~ ' +: I . ! -;- 'T.' , t I j. +, f 1 , '~. r 1 'TOl !- I I ,. I I , .. I' .,.,.... ! l' ....,- . ~ - ~..,..N ~ T +,.0 ..... :it 'iC~ 11;lr; -+.".'+;-"'i:-1H"" -1+' 1 J;. 111-1 !Ti !I.ig "'::::,',W ~ : -t' i +. + -I' f :t + . + -;- I :' ;- r i- -+ f i + -+ . 1 I I + Ti ~: - f L .1, r I , It' 1 ' r.;. . ..~-: i ~ + t Ii t! Ii : t +1. ! t i i ~ .1 t.. c ::',1,,1 I ~., . t 'if + i + ~ I ;- yl..i ,i. , I j';' I '. L ~.... .".. I T II '," r , ;. . .-:.t fT.' , l.D.. . . T if' .; -r1 j -I I . ." ! ! I 1 , .1 .t. I'" I" t ; 1 i . .' , + f ~L + t + -+ .iT T + -:- , 'j'l::' -:H .,. +1 1'): ,J IT 11 L:!- -1,1 T t r!:b t~ i : , ; -1 f + t J.~! ~ :' ~: ' : I- 1-' i , i Ie;:; 1 " -" . rt H ! .!J i L j J J ~. t ~.' , J.Ll:t: . ~ r -I-! I If, T ; '" . 'r t t j' !, '; ," J '1.1 j, '1-1 -+ +It.: I : . t j rt !v; i - .... T..~. : ~l+ ; Ht' ,I . . i.' , : Ii t . + ,I " " -I +t +'-i~l-!j: ! I ~lu. J.i 1.1. ii !,.w..'~t;: + ~'t; ;'IT]" ',\-'!2''''''':.':::: ! _~ 1 f.J t i- -!- -+- i f t ~ t + -1 i t-i + -t -+ L ~ '1 d T -t-H t, ~ - ~!-:t!.. ; i !- if 1 1-' ; ~ J :i &~~'::::;:~: f ' it ill:" . + +~.,,! 1 . r'. . + ;- + i' + +- 'r! I ,. f j i 1 ;~, ~ 1! f !.'~ I ; I U .....:..:.:;: ; ! ~ ! -+ . 't I ; + : : t :.t !-,. +- ::- 1- -1 + ~ r ,"-.1. t ~ " i 'I 2lIJT :'~ ':' :.;;:: . ....." ; ~ ..+: {- if 1-1 !-:t t : :j: + +.-:t 1 T ! . t t H t+ r;:jt:~!- , 11.4;. l~ ~H::-~!,r ; hii[~ ~"..::~:; i' r" t. T +', ~ .: I J:.I.:+: lIt .il,l:!. '.1. J1'1 -+: i::' -; i fuilin' /.: ' 'l+~1 'i.:", 'l'n' ,~ :..1'1' , ~ ..:::~~. !! :t 1 1 -! ; i i '~ . i.~ ~::+t -:!: .1 ~ : .1 -4~ ..!.j I . i, ' t i' LlffituhTtll] ,! :1' i . ::; .0"..... .!..: '.1' i' I;! ',;~!hrl ~1J:l10, L:JlIt..:.I'.I; 11':-i1':-+_,11.." 1 !lilT[ I; ;'.;.,: :. .~::';; . H tH. . ~ , :[t . n'li l ~ (.'j:j... I':,: I tTI I. f'" I'; 1 .,~: iff' ,: -H' I ~ '1' 0 ......,1<> r-+~f+1-t- - T .. -. +4--,-;..... ,.+ r: ,;.- ,_.,0 . ""_ . ~~~. ft , I ~.~ + ~ 1 r- t i f-i- ~ -. ....l : r-., I 1 1 I ~ 1 . ~ , ~ I ~ I . It'.....' t.qH: III ..: t.,. . IUO:)1" ;-+7t-t !!7:lt' :.; ~ IU LH'-j tH'.;. '1:~H-" 'J' l' t" 1'1 ! 'it-l~! I JLj'Lt. +~'l' tj I'':'~''''' ~1 ;itIII' il1;C11!ltl~tLd'flii+:i..~fl 'iJ,I1HJi:,ri-t~lm 11:lufF.l'illI I ~~ n m ; J~ i~ ~!~1ttj~Hi~'~'~Hlll~~t 'jt "1' iTh+ 1. ~ ~,d 1: ~ '1 f~~:cl t HIli Fi ill,:.!..'.. ii1ltl+1 ,w. 'tH. +11;!":ii'. ,tll]l +f~ ' r'H-1'ii; ~:li '1' ',i '.:W:tti I . U I.l. l! 'ii : nr n~ j' J i +H f 1 .ql-W-I ;-jt t !~: ~~I I'~ -~' 1 1 ~. TiT i it j.0. Ll ,~I' ':1',rl _LLlH' n':':: ;2::::~;'~: TI'!" .a::'+:JLt~l' ,+,'j! -1:[11. i 1 ;., '1"" ., /'1: i. IIL- 1 ,,,,......,. .1m,t.li I' ::>'W;jiulr~1 l:ttft:;T!;:-;:;II"~_Lf; i !I:-T~" ;,. jTtlt .j. !'~n!~,.r;! i: r"~"';-,~ il' I rr! r; en ::;',TFm' j.. 'j ,.1; "1]11 '-rli ;1;J'~ T~'t" ., -;- i-!.'. fil 'j: t.. ~I 'I; ~I~ I" ...., : i: ~ ~l : ~ : ~ '~~HTIH~~nkt~ ~1~+r..:H+ ;'l'~~~ hi,~ ~t~Tl.1 +~: 8i1,li :H~l+i~?ftii ~:".j~~;~. i U' It .' ; 1 <( ci : I LIf' Ii iJrITt::J" l'f'l" PM;.11 i iTr -j it~ -I+j' -, ~t1t:l. ~ ~ ; ,':' Lid t tnJ;; :.:.::::.::::. : ~It t -;: If:z ',,;_,': i I.' tttti ~J':" ~ .Jill !' II~ i tiT '!' 't I 11: :'~;' " ;i; ': h:-u r: ~T~' i-1 '" . '~M : i rt ~ ~. a:: ~. ;, r 3 .ltilLLl1 t ~i~'j1- 1 ! 1I ; ~11I Ij! 1 -=-': : J Ji':i L h1']:!rmJ Ii.: rR' ~i~'ig ~ ::..;':..~;. ; '1'. lI.J a::..."J! .tItL.Ll.E:'; .,. f ,In, Tf" i'l 1,. .it .i'I'!.!',,! ,,1 JLlN~..'..m' .!: ; i :; W :~i'I.!t '!jJLL' 'lil"'li 1!1"n . 'li:H': "-m' ,W-!-'I..., : 'TriTt'l . ."~~ : pi ,,~ ~ ~.~ .::q~~T-'~~'fL:h:.:_:W:::E!Jlt~jtl~f" ; _tFtTI~ 21' TW':r i~~ ::-~.; m.};~l.l;11 i . ~ ; I:!: ff t, '. : . <( '~h 1 B..1 I ~'i aI !Llit q t ; 1- I g: : 1.. ill: lIIW,j,l L.: I .1 1 ~,:.l1 ; .:.I.;I! L! ! . i ; . . IT .. . 0 :;,. . ". t r.,. 'I: tTi ;1 , j . T .. .1 J . :1:: ; IT . I II ,. .." 1, ' 'r:! f : I .. :' fjlrfJI; : ~ .ci:T~'{P~ ~rLITt!~~rrn:H+~J-:iftili ~j'~ll~'~~ J11l]1! Ht1~ ~-1fi-l-jiffi~ ~~'""~{:~ ~ 1 ~.;. j: . a:: ~ ; + 1~ ~ ~ hi ::'t ;.. -!J; 1:11; f -i I"; i: !,: : f li' + rK.~-H: I I-IT: I :~.).tt I ~~; V'I~ :"~';~fgi :~~I!~~- .~ ~ :~tl~'!:!!1,1:! 'i:J!f,'i.j~- tj0j "jl: lJ~ :t"jI2f-it' ~I:t,:;jtu rl.tfIltj: ....,.:.::..~ _u.:t+, 'L:<( o~..:..!.J.:.-t.~..:.__I_. 'hL; j .:..l.j;..1l....U.~L:r;_,;... ~,'~_ 'lll;-C-!L:,1, ":'..~':~:~~ 'I~ ~+ 1 :1:13: () J:t~l+1 'U:.:.L:l i. j"l t~:F if':' 11. ,:~ ff ;.,1: '':'1: :j li~ !1;1q~: .":::.::: : . : 11 ;w: '1' II.t'- ;j"j:i~+"I:I' i :'1;": j ",,1. ,J: 1"+ :..j:'['t: W! 1.1;1. t1:!:, " '~:;'.~:':~ i: 1 J l' ;: : I: i!'-f, , :-;~' :1: , ":l~ :1' Tt'; .~: :,;[ :!;i:-!: I~:':;I;:! l:f;!~ U":~; I, . . - J, -, i' . . - . - r' ,I I. [t ~ ' j III I .1 ffif' . . ". _1 t. I I . I . I, 1. ." . ....", '-1;I~j'l:il~:';i I; .J' ~ ~I. r: .+:'LI~:fT.-i-I' ~ +1':':-111.; r'I' 'I' ~l.,-I]+ :':~I.-~+.;..rl:~~r-:: ,.~:~"~:.~ I' ; ,'; I' 'I :!: !:: -1' : I ., I; . i " 1 1, . i;; '" '11 I II' i I '[ : I':' : '1 ;:: i d' ; i I : ; . 'I -, I. , : .; :: I I; I' ,. i; I: Ii j' 'I '. 'I' I' I ~ ." I ~ I; I' '" "I'j'l; I'" . . :JI~; ,jJ!.j:,tU~,l,:~'!ij~tli:,':';. .:;jjL~~qlii ~LJU! T :liTL!.:jiidJ U ! io!:!.o'! 10' ! h~':oi,l 6'\ Oo~':.6o' !,'~o .'1 ! :o~,l 1:1"01::: :-;~!;; !'jo:l!. :~fll~;: .-, :0.1.0 () 0 ,0 o! i l~ ~: !'~ u ,!o:tl:o-l,~()::: 0 :~: It:.1 :~\ !'~ .... '0 on' ':!,l: ~~ ','; ~"."I = 'I I,m r'tti I j,..:j.l II()!i,.i l'l~i,!: ~ ~ ;~~I,I i i' , . I I ,r" 'I I ii' I.),,' . I ..... If 1'lr' 't .~. : . I I I I I I I I I I I I I I I 43 I VIII. ADDITIONAL INDEBTEDNESS REQUIREMENTS To determine annual net operating income for pro forma computation, the following tables have been computed for Series 1961 Bonds outstanding plus additional Water and Sewerage Bonded Indebtedness. Preliminary pro form as have been computed for the following amounts and maturity years: EXHIBITS AMOUNT MATURITY Exhibit I $1,500,000 20 years Exhibit II 2,000,000 25 years Exhibit III 2,250,000 25 years Exhibit IV 2,500,000 25 years Exhibit V 2,750,000 25 years Exhibit VI 3,000,000 25 years 1. Total Gross Interest Cost for Series 1961 and New Bonds: Exhibit I Series 1961 Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..$ 357,567.50 Series 1977 Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1,514,175.00 Total Interest Cost ............................. .$1,871,742.50 Exhibit II Series 1961 Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..$ 357,567.50 Series 1977 Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2,619,400.00 Total Interest Cost ............................. .$2,976,967.50 Exhibit III Series 1961 Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..$ 357,567.50 Series 1977 Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2,619,400.00 Total Interest Cost ............................. .$3,331,867.50 Exhibit IV Series 1961 Bonds. . . . . .. . . . . . . . . . . . . . . . . . . . . . . ..$ 357,567.50 Series 1977 Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3,308,550.00 Total Interest Cost ............................. .$3,666,117.50 Exhibit V Series 1961 Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..$ 357,567.50 Series 1977 Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3,661,000.00 Total Interest Cost ............................. .$4,345,167.50 Exhibit VI Series 1961 Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..$ 357,567.50 Series 1977 Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3,987,600.00 Total Interest Cost ............................. .$4,345,167.50 44 I I I I I I I I I I I I I I I I I I I 2. Average Annual Principal Requirements: Series 1961 Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$182,000.00 Exhibit I - $1,500,000 ............................. 76,000.00 Exhibit II - $2,000,000 ............................ 80,000.00 Exhibit III - $2,250,000 .. . . . . . . . . . .. .. . . . . . . . . . . . .. 90,000.00 Exhibit IV - $2,500,000 . . . . . . . . . . . . . . . . . . . . . . . . . . .. 100,000.00 Exhibit V - $2,750,000 ............................ 110,000.00 Exhibit VI - $3,000,000 . . . . . . . . . . . . . . . . . . . . . . . . . . .. 120,000.00 3. Average Annual Interest Requirements: Series 1961 Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..$ 35,765.75 Exhibit I - $1,500,000 ............................. 75,708.75 Exhibit II - $2,000,000 ............................ 104,776.00 Exhibit III - $2,250,000 . . . . . . . . . . . . . . . . . . . . . . . . . . ., 118,972.00 Exhibit IV - $2,500,000 . . . . . . . . . . . . . . . . . . . . . . . . . . .. 132,342.00 Exhibit V - $2,750,000 ............................ 146,440.00 Exhibit VI - $3,000,000 . .. . . . . . . . . . .. . . . . . . . . . . .... 159,504.00 4. Average Annual Principal Requirements for Series 1962 and Series 1977 Bonds: Exhibit I ........................................ .$259,587.00 Exhibit II ........................................ 271,878.00 Exhibit III . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 296,074.00 Exhibit IV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 319,444.00 Exhibit V ........................................ 343,543.00 Exhibit VI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 366,607.00 5. Coverage Requirements for Average Annual Principal and Interest Requirements for Series 1961 and Series 1977 Bonds: Exhibit I Net Income Required for a 1.60 Times Coverage. . . . . . .$415,794.00 Net Income Required for a 1.50 Times Coverage. . . . . .. 389,806.00 Net Income Required for a 1.40 Times Coverage. . . . . .. 363,819.00 Net Income Required for a 1.30 Times Coverage. . . . . ., 337,832.00 Net Income Required for a 1.25 Times Coverage. . . . . .. 324,838.00 Exhibit II Net Income Required for a 1.60 Times Coverage. . . . . . .$435,004.00 Net Income Required for a 1.50 Times Coverage. . . . . .. 407,817.00 Net Income Required for a 1.40 Times Coverage. . . . . .. 380,629.00 Net Income Required for a 1.30 Times Coverage. . . . . .. 353,441.00 Net Income Required for a 1.25 Times Coverage. . . . . .. 339,842.00 45 Exhibit III Net Income Required for a 1.60 Times Coverage. . . . . . .$473,718.00 Net Income Required for a 1.50 Times Coverage. . . . . .. 444,110.00 Net Income Required for a 1.40 Times Coverage. . . . . .. 414.503.00 Net Income Required for a 1.30 Times Coverage. . . . . .. 384,896.00 Net Income Required for a 1.25 Times Coverage. . . . . .. 370,092.00 Exhibit IV Net Income Required for a 1.60 Times Coverage. . . . . . .$511,110.00 Net Income Required for a 1.50 Times Coverage. . . . . .. 479,166.00 Net Income Required for a 1.40 Times Coverage. . . . . .. 447,221.00 Net Income Required for a 1.30 Times Coverage. . . . . .. 415,277.00 Net Income Required for a 1.25 Times Coverage. . . . . .. 399,305.00 Exhibit V Net Income Required for a 1.60 Times Coverage. . . . . . .$549,668.00 Net Income Required for a 1.50 Times Coverage. . . . . .. 515,314.00 Net Income Required for a 1.40 Times Coverage. . . . . .. 480,960.00 Net Income Required for a 1.30 Times Coverage. . . . . .. 446,605.00 Net Income Required for a 1.25 Times Coverage. . . . . .. 429,428.00 Exhibit VI Net Income Required for a 1.60 Times Coverage. . . . . . .$586,571.00 Net Income Required for a 1.50 Times Coverage. . . . . .. 549,910.00 Net Income Required for a 1.40 Times Coverage. . . . . .. 513,249.00 Net Income Required for a 1.30 Times Coverage. . . . . .. 476,891.00 Net Income Required for a 1.25 Times Coverage. . . . . .. 458,258.00 46 I I I I I I I I I I I I I I I I I I I Under accepted practices of Revenue Bond financing, conditions must be established to guarantee the marketability of additional Water and Sewerage System Indebtedness. Net revenues, after payment of operations, should never be less than 125% of maximum annual principal and interest requirements of both the Series 1961 Water and Sewerage System Revenue Bonds now outstanding and the additional principal and interest require- ments of any new bonds to be issued. In addition, it is preferable that such "coverage factor" substantially exceed 125% of average annual principal and interest requirements to establish prime security of the bonds out- standing and the bonds to be issued. The following "Net Operating Income" will be required to satisfy maximum "coverage" requirements indicated: 1. Maximum Debt Service for Exhibit I (1986) . . . . . . . . . . . . .$331,090.00 Net Income Coverage Factor Net Operating Income Required at 1.60 coverage ................. .$529,744.00 at 1.50 coverage .................. 496,605.00 at 1.40 coverage .................. 463,526.00 at 1.30 coverage .................. 430,417.00 at 1.25 coverage .................. 413,862.00 2. Maximum Debt Service for Exhibit II (1986) . . . . . . . . . . . .$373,240.00 Net Income Coverage Factor Net Operating Income Required at 1.60 coverage ................. .$597,184.00 at 1.50 coverage .................. 559,860.00 at 1.40 coverage .................. 522,536.00 at 1.30 coverage .................. 485,212.00 at 1.25 coverage .................. 466,550.00 3. Maximum Debt Service for Exhibit III (1986) .......... .$390,390.00 Net Income Coverage Factor Net Operating Income Required at 1.60 coverage ................. .$624,624.00 at 1.50 coverage .................. 585,585.00 at 1.40 coverage .................. 546,546.00 at 1.30 coverage .................. 507,507.00 at 1.25 coverage .................. 487,987.00 4. Maximum Debt Service for Exhibit IV (1986) .......... .$408,240.00 Net Income Coverage Factor Net Operating Income Required at 1.60 coverage ................. .$653,184.00 at 1.50 coverage .................. 612,360.00 at 1.40 coverage .................. 571,536.00 at 1.30 coverage .................. 530,712.00 at 1.25 coverage .................. 510,300.00 47 5. Maximum Debt Service for Exhibit V (1986) .. . . . . . . . . . .$427,140.00 Net Income Coverage Factor Net Operating Income Required at 1.60 coverage ................. .$683,424.00 at 1.50 coverage .................. 640,710.00 at 1.40 coverage .................. 597,996.00 at 1.30 coverage .................. 555,282.00 at 1.25 coverage .................. 533,925.00 6. Maximum Debt Service for Exhibit VI (1986) .......... .$444,640.00 Net Income Coverage Factor Net Operating Income Required at 1.60 coverage ................. .$711,424.00 at 1.50 coverage .................. 666,960.00 at 1.40 coverage .................. 622,960.00 at 1.30 coverage .................. 578,032.00 at 1.25 coverage .................. 555,800.00 48 I I I I I I I I I I I I I I I I I I I IX. PROJECTION OF FUTURE WATER AND SEWAGE SYSTEM OPERATIONS The following projections of the Water and Sewage System operations have been computed based upon the average increase in gross revenues and operational expenses over the past five years. Projections of increased revenues are based upon a 5% increase each year, although the average has been 6%; but due to suggested rate increases, a conservative figure of 5% is used for pro forma purposes. A 10% increase per year is computed for operational expenses which has been the average increase over the past five years. Projected revenues and operating expenses for the years 1976 through 1981 are as follows: 35% Water and Sewer Rate Increase - Projected Projected Projected Operating Operating Net Operating Year Revenues Expenses Income 1976 $1,612,550 $1,330,865 $281,685 1977 2,177,942 1,463,951 713,991 1978 2,286,839 1,610,346 676,473 1979 2,401,180 1,771,380 629,800 1980 2,503,239 1,048,518 554,721 1981 2,624,400 2,143,036 485,364 40% Water and Sewer Rate Increase - Projected Projected Projected Operating Operating Net Operating Year Revenues Expenses Income 1976 $1,612,550 $1,330,865 $281,685 1977 2,257,570 1,463,951 793,619 1978 2,370,448 1,610,346 760,102 1979 2,488,970 1,771,380 717,590 1980 2,613,418 1,048,518 664,900 1981 2,744,088 2,143,036 601,052 49 x. FLOW OF FUNDS Ordinance No. 6546 of the Series 1961 Bonds defines the ~lFlow of Funds" in the handling of all System incomes and ex- penses. The new indebtedness represents an obligation of imp res- sive proportions and necessitates the drafting of a bond ordinance employing the best possible financial conditions of bond issuance. A few covenants which should be included in the new bond ordi- nance are as follows: a. The City should re-establish the ~lW ater and Sewage Fund" as originally created for the Series 1961 Bonds and all System incomes should be deposited in such Fund; b. First, the City should pay the actual cost of maintenance and operation of the System; c. Next, the City should establish a llBond and Interest Account for Combined Water and Sewage System Rev- enue Bonds, Series of 1977," and make periodic transfers to anticipate semiannual interest requirements and an- nual principal requirements of all Water and Sewage System indebtedness. Cognizance must be given to the Series 1961 Bonds as such bonds will exist as a prior and junior lien on all of the Combined Water and Sewage System indebtedness with new bonds existing as junior lien indebtedness. d. Next, the City should create a llReserve Account for Com- bined Water and Sewage System Revenue Bonds, Series of 1977" for the new bond issue. Preliminary analysis of cash and invested funds on hand indicates an immediate transfer of$200,000 for Exhibit I, $225,000 for Exhibit II, and $245,000 for Exhibits III, IV, V, and VI. Bond Reserve for Exhibits IV, V, and VI will be increased by monthly transfers by transferring $25,000 in 1978 for a total Bond Reserve of $270,000 for Exhibit IV; by transferring $25,000 per year in the years 1978 and 1979 and $5,000 in 1980 for a total Bond Reserve of $300,000 for Exhibit V; and by transferring $25,000 per year in the years 1978, 1979, and 1980 until a Bond Reserve of $320,000 is ac- cumulated in Exhibit VI. Section 14 of Ordinance No. 6546 allows for excessive funds in the Bond Reserve Ac- count for the Series 1961 Bonds to be transferred to the Water and Sewage Fund which then can be transferred to the Bond Reserve Account for Series 1977 Bonds, leaving a balance and maximum reserve of $300,000 for the Series 1961 Bonds. 50 I I I I I I I I I I I I I I I I I I I e. Next, the City should continue the "Combined Water and Sewage System Extension Bond and Retirement Ac- count" into which all residual incomes shall be deposited which are not required for maintenance and operation, debt service, or Bond Reserve transfers. The use of surplus accumulations should be determined in anticipa- tion of payment of enlargements and improvements to the System either in annual amounts or through the accumu- lation of surplus for future major improvements and to exercise bond call authorizations. f. Next, a covenant should be established that the new bonds may be refunded, so that at any time these bonds are refunded any new bonds to be issued at a later date would enjoy a parity status with other outstanding Sys- tem indebtedness. g. Next, the City should establish "coverage" covenants guaranteeing to maintain rates, fees, and charges which shall produce net incomes adequate to satisfy coverage factors agreed upon. Weare recommending that a 125% coverage factor be maintained for the new bonds. h. Next, the City should establish "earnings tests" which provide conditions under which additional System in- debtedness may be issued as parity indebtedness to the Series 1977 Bonds to be issued; included in the "earnings tests" a section should be added to read "The average annual net income fOl two preceding years shall not be less than 125% of the maxi num annual debt service re- quirement for all outstanl1ing and contemplated addi- tional indebtedness; provided that earnings from rate increases implemented during the past two test years (when certified by consulting engineers) may be employed in determining net income availability." Also included in the test should be the fact that all funds and reserves are at the maximum required amounts. 1. Next, the bond ordinance should require the City to maintain adequate insurance coverage, provide an an- nual audit, provide that Combined Water and Sewage System operations shall be conducted in a businesslike manner, and provide periodic inspection and a report made to the Governing Body as to the general physical condition and operational procedures of the entire Com- bined Water and Sewage System. 51 J. Next, upon adoption of the ordinance, there should be created an account to be designated "Depreciation and Emergency and Replacement Account for Series 1977 Bonds" into which account on August 1,1986, or as soon thereafter as the Series 1961 Bonds are paid or cash provision made for payment, shall be transferred $125,000. Monies in said "Account" shall be used for the same purposes as provided in Ordinance 6546 for Series 1961 Bonds. 52 I I I I I I I I I I I I I I I I I I I XI. REVENUE BOND MATURITY SCHEDULES The attached Schedules develop principal and interest re- quirements and suggested reserve accumulations for the different amount of bonds issued previously mentioned in this Report. Bond principal payments have been computed to provide approximate equal annual debt service requirements for the years 1977 through 1986 until the Series 1961 Bonds have been retired, and then approximate equal annual debt service requirements for the Series 1977 Bonds remaining outstanding from 1987 through 1996. The same applies for Exhibits II, III, IV, V, and VI for approximate equal annual debt service requirements for the years 1987 through 200l. Static incomes are employed in the years 1981 through 1996 for Exhibit I and the years 1981 through 2001 for the remaining five exhibits. Net income in Exhibit I is 199% of average annual debt service; in Exhibit II it is 187%; in Exhibit III it is 172%; in Exhibit IV it is 194%; in Exhibit V it is 181%; and in Exhibit VI it is 170%. In Revenue Bond Issues, realistic financial programming es- tablishes "Bond Reserves" and "Maintenance Reserves" to be used for unforeseen and emergency fiscal and operating contingencies. In the Exhibits, we have arbitrarily employed the reserve accounts previously mentioned; however, we feel that the existing Mainte- nance Reserve is adequate to service the System and one will not be maintained for the Series 1977 Bonds. Bond Ordinances customarily permit municipalities to use surplus accumulations for enlargement, expansion and improve- ments of the Combined Water and Sewage System, and thus eliminate the necessity of future additional bonds whenever possi- ble. The Exhibits have indicated annual surplus which can be used for annual capital improvements, and we are recommending that the Water and Sewer rates be increased to cover not only all System indebtedness, maintenance and operation, a Bond Re- serve, but also to allow for annual surplus to make the particular capital improvements. 53 Utility System Revenue Bonds are customarily optional and surplus accumulations may be used to call and prepay bond princi- pal prior to maturity, in addition to amounts in the Bond Reserve Account. This call factor is of importance as considerable interest saving will result through call provisions. The Series 1961 Bond Ordinance has a 3% call premium, and it is recommended that Series 1977 Bonds additionally have a 3% call or a declining call premIUm. Bond principal maturity schedules (Exhibits I, II, III, IV, V, and VI) are as follows: 54 - - - - - - - - - - - - - - - - - - - Maturity - 20 Years $1,500,000 Financial Pro Forma Interest Rate Factor - 6 1/2"1. CITY OF SALINA, KANSAS Exhibit I WATER AND SEWERAGE SYSTEH REVENUE BONDS SERIES 1977 THIS ISSUE - SERIES 1977 TOTAL DEBT BOND RESERVE - SERIES 1977 SURPLUS ACCOUNT ANNUAL NET DEBT SERVICE ANNUAL ANNUAL TOTAL DEBT SERVICE ANNUAL ACCUMULATED ANNUAL ACCUMULATED MATURITY INCOME SERIES 1961 BONDS PRINCIPAL INTEREST SERVICE ALL BONDS TRANSFER RESERVE SURPLUS SURPLUS 1977 $ 713,991 (A) $ 183,097.50(B) $ -0- $ 97,500 $ 97,500 $ 280,597.50 $200,000(C) $200,000 $433,313.50 $ 433,313.50(D) 1978 676,493 215,945.00 -0- 97,500 97,500 313 ,445. 00 -0- 200,000 363,048.00 796,361. 50 1979 629,800 215,365.00 10,000 97,500 107,500 322,865.00 -0- 200,000 306,935.00 1,103,296.50 1980 554,721 219,605.00 10,000 96,850 106,850 326,455.00 -0- 200,000 228,266.00 1,331,562.50 1981 485,364 2111,4115.00 10,000 96,200 106,200 324,685.00 -0- 200,000 160,679.00 1,492,241.50 1982 485,364 222,185.00 10,000 95,550 105,550 327,735.00 -0- 200,000 157,629.00 1,649,870.50 1983 485,364 225,525.00 10,000 94,900 104,900 330,425.00 -0- 200,000 154,939.00 1,804,809.50 1984 485,364 223,310.00 10,000 94,250 104,250 327,560.00 -0- 200,000 157,804.00 1,962,613.50 1985 485,364 225,910.00 10,000 93,600 103,600 329,510.00 -1)- 200,000 155,854.00 2,118,467.50 1986 485,364 228,140.00 10,000 92,950 102,950 331,090.00 -0- 200,000 154,274.00 2,272,741.50 1987 485,364 -0- 100,000 92,300 192,300 192,300.00 -0 - 200,000 293,064.00 2,565,805.50 1988 485,364 -0- 110,000 85,800 195,800 195,800.00 -0- 200,000 289,564.00 2,855,369.50 1989 485,364 -0- 120,000 78,650 198,650 198,650.00 -0- 200,000 286,714.00 3,142,083.50 01 1990 4115,364 -0- 130,000 70,850 200,850 200,850.00 -0- 200,000 284,514.00 3,426,597.50 01 1991 485,364 -0- 135,000 62,400 197,400 197,400.00 -0- 200,000 287,964.00 3,714,561. 50 1992 485,364 -0- 145,000 53,625 198,625 198,625.00 -0- 200,000 286,739.00 4,001,300.50 1993 485,364 -0- 155,000 44,200 199,200 199,200.00 -0- 200,000 286,164.00 4,287,464.50 1994 485,364 -0- 165,000 34,125 199,125 199,125.00 -0- 200,000 286,239.00 4,573,703.50 1995 485,364 -0- 175,000 23,400 198,400 198,400.00 -0- 200,000 286,964.00 4,860,667.50 1996 485,364 -0- 185,000 12,025 197,025 197,025.00 -0- 200,000 288,339.00 5,149,006.50 $10,340,829 $2,177,567.50 $1,500,000 $1,514,175 $3,014,175 $5,191,742.50 NOTES: (A) 1977 net operating income based on a 35% water and sewer rate increase effective January 1, 1977 (B) Series 1961 Water and Sewage System Revenue Bond debt outstanding. (C) "BOND RESERVE" created innnediate1y from funds on hand transferred from the "Water and Sewage Fund" authorized under Section 14 of Ordinance No. 6546. (D) "SURPLUS ACCOUNT" funds to be used to: 1. Pay the cost of operations and maintenance and repair of the Water and Sewage System. 2. Anticipating payments into the different accounts if needed. 3. Paying the cost of imprOVing and extending the system. 4. Redeeming Bonds prior to maturity. SUMMARY: Average Annual Net Income ------------------------------- $ 517,041.45 Debt Service Requirements (All System Indebtedness) - Average Annual Debt Service --------------------------- Maximum Debt Service (1986) --------------------------- 259,587.12 331,090.00 Coverage Factors - Coverage of Average Annual Debt Service Requirements by Average Annual Net Income ------------------------ Coverage of Maximum Debt Service Requirements by Net Income ------------------------------------------ 1.99 TIMES 1.46 TIMES Maturity - 25 years Interest Rate Factor - 7% 01 ~ MATURITY 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 ANNUAL NET INCOME $ 713,991(A) 676,493 629,800 554,721 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 $12,767,649 $2,000,000 CITY OF SALINA, KANSAS WATER AND SEWERAGE SYSTEM REVENUE BONDS SERIES 1977 Financial Pro Forma EXHIBIT II DEBT SERVICE SERIES.1961 BONDS $ 183,097.50 (B) 215,945.00 215,365.00 219,605.00 218,485.00 222,185.00 225,525.00 223,310.00 225,910.00 228,140.00 -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- $2,177,567.50 THIS ANNUAL PRINCIPAL $ -0- -0- 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 80,000 85,000 90,000 95,000 100,000 105,000 110,000 120,000 130,000 140,000 150,000 160,000 170,000 185,000 200,000 $2,000,000 ISSUE - SERIES 1977 TOTAL DEBT BOND RESERVE - SERIES 1977 ANNUAL TOTAL DEBT SERVICE INTEREST SERVICE ALL BONDS $ 140,000 $ 140,000 $ 320,097.50 140,000 140,000 355,945.00 140,000 150,000 365,365.00 139,300 149,300 368,905.00 138,600 148,600 367,085.00 137,900 147,900 370,085.00 137,200 147,200 372,725.00 136,500 146,500 369,810.00 135,800 145,800 371,710.00 135,100 145,100 373,240.00 134,400 214,400 214,400.00 128,800 213,800 213,800.00 122,850 212,850 212,850.00 116,550 211,550 211,550.00 109,900 209,900 209,900.00 102,900 207,900 207,900.00 95,550 205,550 205,550.00 87,850 207,850 207,850.00 79,450 209,450 209,450.00 70,350 210,350 210,350.00 60,550 210,550 210,550.00 50,050 210,050 210,050.00 38,850 208,850 208,850.00 26,950 211,950 211,950.00 14,000 214,000 214,000.00 $2,619,400 $4,619,400 $6,796,967.50 SUMMARY: Average Annual Net Income -------------------------------- NOTES: (A) 1977 net operating income based on a 35% water and sewer rate increase effective January I, 1977. (B) Series 1961 Water and Sewage System Revenue Bond debt outstanding. (C) "BOND RESERVE" created immediately from funds on hand transferred from the "Water and Sewage Fund" authorized under Section 14 of Ordinance No. 6546. (D) "SURPLUS ACCOUNT" funds to be used to: 1. Pay the cost of operations and maintenance and repair of the Water and Sewage System. 2. Anticipating payments into the different accounts if needed. 3. Paying the cost of improving and extending the system. 4. Redeeming Bonds prior to maturity. ANNUAL TRANSFER $225,OOO(C) -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- ACCUMULATED RESERVE $225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 225,000 SURPLUS ACCOUNT ANNUAL SURPLUS $393,893.50 320,548.00 264,435.00 185,816.00 118,279.00 115,279.00 112,639.00 115,554.00 113,654.00 112,124.00 270,964.00 271,564.00' 272,514.00 273,814.00 275,464.00 277,464.00 279,814.00 277 ,514.00 275,914.00 275,014.00 274,814.00 275,314.00 276,514.00 273,414.00 271,364.00 ACCUMULATED SURPLUS 393,893.50(D) 714,441.50 978,876.50 1,164,692.50 1,282,971.50 1,398,250.50 1,510,889.50 1,629,443.50 1,740,097.50 1,852,221. 50 2,123,185.50 2,394,749.50 2,667,263.50 2,941,077.50 3,216,541.50 3,494,005.50 3,773,819.50 4,051,333.50 4,327,247.50 4,602,261.50 4,877 ,077 .50 5,152,389.50 5,428,903.50 5,702,317.50 5,973,681.50 $ $510,705.96 Debt Service Requirements (All System Indebtedness) - Average Annual Debt Service ---------------------------- Maximum Debt Service (1986) ---------------------------- 271,878.70 373,240.00 Coverage Factors - Coverage of Average Annual Debt Service Requirements by Average Annual Net Income ------------------------- Coverage of Maximum Debt Service Requirements by Net Income ------------------------------------------- 1.87 TIMES 1. 30 TIMES - - - - - - Maturity - 2S yeara latarut late ractor - 71 HArUUTY 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 01 1992 -:J 1993 1994 1995 1996 1997 1998 1999 2000 2001 AIOlUAL IlET DICCIII $ 713,991 (A) 676,493 629,800 554,721 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 485,364 $12,767,649 DUT SEltVlCE SElIES 1961 BONDS $ 183,097.50(B) 215,945.00 215,365.00 219,605.00 218,485.00 222,185.00 225,525.00 223,310.00 225,910.00 228,140.00 -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- $2,177,567.50 - - - - - $2,250,000 CITY or SALINA, KANSAS WATEIt AND SEWERAGE SYSTEM REVENUE BONDS SERIES 1977 THIS ISSUE - SERIES 1977 TOTAL DEBT AIOOW. AIOOW. TOTAL DEBT SERVICE PRINCIPAL INTEREST SERVICE ALL BONDS $ -0- $ 157,500 $ 157,500 $ 340,597.50 -0- 157,500 157,500 373,445.00 10,000 157,500 167,500 382,865.00 10,000 156,750 166,750 386,355.00 10,000 156,000 166,000 384,485.00 10,000 155,250 165,250 387,435.00 10,000 154,500 164,500 390,025.00 10,000 153,750 163,750 387,060.00 10,000 153,000 163,000 388,910.00 10,000 152,250 162,250 390,390.00 80,000 151,550 231,550 231,550.00 90,000 145,950 235,950 235,950.00 95,000 139,650 234,650 234,650.00 100,000 133,000 233,000 233,000.00 110,000 126,000 236,000 236,000.00 115,000 118,300 233,300 233,300.00 125,000 110,250 235,250 235,250.00 135,000 101,500 236,500 236,500.00 145,000 92,050 237,050 237,050.00 180,000 81,900 241,900 241,900.00 180,000 70,700 250,700 250,700.00 190,000 58,100 248,100 248,100.00 200,000 44,800 244,800 244,800.00 215,000 30,800 245,800 245,800.00 230,000 15,750 245,750 245,750.00 $2,250,000 $2,974,300 $5,224,300 $7,401,867.50 SUMMARY: Average Annual Net NOTES: (A) 1977 net operating incoae based on a 35% water and sewer rate increase effective January I, 1977. (B) Seriea 1961 Water and Sewage System Revenue Bond debt outstanding. (C) "BOND RESERVE" created ~iate1y from funds on hand transferred frla the ''Water and Sewage Fund" authorized under Section 14 of Ordinance No. 6546. (D) "SURPLUS ACCOUNT" funds to be used to: 1. Pay the cost of operationa and maintenance and repair of the Water and Sewage System. 2. Anticipating pa~ta into the different accounts if needed. 3. Paying the coat of iaproving and extending the system. 4. Redeea1ng Bonds prior to maturity. - - - ACCUMULATED RESERVE $245,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 - - - - - Financial Pro Foraa EXHIBIT III BOND RESERVE - SERIES 1977 SURPLUS ACCOUNT ANNUAL ACCUMULATED SURPLUS SURPLUS $373,393.50 $ 373,393.50(D) 303,048.00 676,441.50 246,935.00 923,376.50 168,366.00 1,091,742.50 100,879.00 1,192,621.50 97,929.00 1,290,550.50 95,339.00 1,385,889.50 98,304.00 1,484,193.50 96,454.00 1,580,647.50 94,974.00 1,675,621.50 253,814.00 1,929,435.50 249,414.00 2,178,849.50 250,714.00 2,429,563.50 252,364.00 2,681,927.50 249,364.00 2,931,291.50 252,064.00 3,183,355.50 250,114.00 3,433,469.50 248,864.00 3,682,333.50 248,314.00 3,930,647.50 243,464.00 4,174,111.50 234,664.00 4,408,775.50 237,264.00 4,696,039.50 240,564.00 4,886,603.50 239,564.00 5,126,167.50 239,614.00 5,365.781.50 ANNUAL TRANSFER $245,OOO(C) -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- Income -------------------------------- $510,705.96 Debt Service Requirements (All System Indebtedness) - Average Annaa1 Debt Service ---------------------------- ~ Debt Service (1986)----------------------------- 296.074.70 390.390.00 Coverage Factors - Coverage of Average Annual Debt Service Requirements by Average Annual Net Income ------------------------- Coverage of Maximum Debt Service Requirements by Net Income ------------------------------------------- 1. 72 TIMES 1. 25 TIMES $2,500,000 Maturity - 25 years CITY OF SALINA, KANSAS Financial Pro Forma Interest Rate Factor - 7% WATER AND SEWERAGE SYSTEM REVENUE BONDS EXHIBIT IV SERIES 1977 THIS ISSUE - SERIES 1977 TOTAL DEBT BOND RESERVE-SERIES 1977 SURPLUS ACCOUNT ANNUAL NET DEBT SERVICE ANNUAL ANNUAL TOTAL DEBT SERVICE ANNUAL ACCUMULATED ANNUAL ACCUMULATED KAnIRITY INCOME SERIES 1961 BONDS PRINCIPAL INTEREST SERVICE ALL BONDS TRANSFER RESERVE SURPLUS SURPLUS 1977 $ 793,619 (A) $ 183,097.50(B) $ -0- $ 175,000 $ 175,000 $ 358,097.50 $245, 000 (C) $245,000 $535,521.50 $ 535,521.50(D) 1978 760,102 215,945.00 -0- 175,000 175,000 390,945.00 25,000 270,000 344,157.00 879,678.50 1979 717,590 215,365.00 10,000 175,000 185,000 400,365.00 -0- 270,000 317,225.00 1,196,903.50 1980 664,900 219,605.00 10,000 174,300 184,300 403,905.00 -0- 270,000 260,995.00 1,457,898.50 1981 601,052 218,485.00 10,000 173,600 183,600 402,085.00 -0- 270,000 198,967.00 1,656,865.50 1982 601,052 222,185.00 10,000 172,900 182,900 405,085.00 -0- 270,000 195,967.00 1,852,832.50 1983 601,052 225,525.00 10,000 172,200 182,200 407,725.00 -0- 270,000 193,327.00 2,046,159.50 1984 601,052 223,310.00 10,000 171,500 181,500 404,810.00 -0- 270,000 196,242.00 2,242,401.50 1985 601,052 225,910.00 10,000 170,800 180,850 406,760.00 -0- 270,000 194,292.00 2,436,693.50 1986 601,052 228,140.00 10,000 170,100 180,100 408,240.00 -0- 270,000 192,812.00 2,629,505.50 1987 601,052 -0- 90,000 169,400 259,400 259,400.00 -0- 270,000 141,652.00 2,971,157.50 1988 601,052 -0- 100,000 163,100 263,100 263,100.00 -0- 270,000 337,952.00 3,309,109.50 1989 601,052 -0- 105,000 156,100 261,100 261,100.00 -0- 270,000 339,952.00 3,649,061.50 1990 601,052 -0- 115,000 148,750 263,750 263,750.00 -0- 270,000 337,302.00 3,986,363.50 1991 601,052 -0- 125,000 140,700 265,700 265,700.00 -0- 270,000 335,352.00 4,321,715.50 1992 601,052 -0- 135,000 131,950 266,950 266,950.00 -0- 270,000 334,102.00 4,655,817.50 1993 601,052 -0- 145,000 122 , 500 267,500 267,500.00 -0- 270,000 333,552.00 4,989,369.50 01 1994 601,052 -0- 155,000 112,350 267,350 267,350.00 -0- 270,000 333,702.00 5,323,071.50 00 1995 601,052 -{)- 165,000 101,500 266,500 266,500.00 -0- 270,000 334,552.00 5,657,623.50 1996 601,052 -0- 180,000 89,950 269,950 269,950.00 -0- 270,000 331,102.00 5,988,725.50 1997 601,052 -{)- 195,000 77 , 350 272,350 272,350.00 -0- 270,000 328,702.00 6,317,427.50 1998 601,052 -0- 205,000 63,700 268,700 268,700.00 -0- 270,000 332,352.00 6,649,779.50 1999 601,052 -0- 220,000 49,350 269,350 269,350.00 -0- 270,000 331,702.00 6,981,479.50 2000 601,052 -0- 235,000 33,950 268,950 268,950.00 -0- 270,000 332,102.00 7,313,581.50 2001 601,052 -0,- 250,000 17 ,500 267,500 267,500.00 -0- 270,000 333,552.00 7,647,133.50 $15,558,303 $2,177,567.50 $2,500,000 $3,308,550 $5,808,550 $7,986,117.50 NOTES: (A) 1977 net operating income based on a 40% water and sewer rate increase effective January 1, 1977. (B) Series 1961 Water and Sewage System Revenue Bond debt outstanding. (C) "BOND RESERVE" of $245,000 created illlmediately from funds on hand transferred from the ''Water and Sewage Fund" authorized under Section 14 of Ordinance No. 6546. Additional monthly transfers of $2,083.33 commencing January 1, 1978 until a maximum of $270,000 is accumulated in the Bond Raserve for Series 1977 Bonds. (D) "SURPLUS ACCOUNT" fundi to be used to: 1. Pay the cost of operations and maintenance and repair of the Water and Sewage SYltem. 2. Anticipating payments into the different accountl if needed. 3. Paying the COlt of improving end extending the system. 4. Redeeming Bondi prior to maturity. SUMMARY: Average Annual Net Income -------------------------------- $622,332.12 Debt Service Requirements (All System Indebtedness) - Average Annual Debt Service ---------------------------- 319,444.70 ~ Debt Service (1986) ---------------------------- 408,240.00 Coverage Factors - Coverage of Average Annual Debt Service Requirements by Average Annual Net Income ------------------------- 1.94 TIMES Coverage of Maximum Debt Service Requirements by Net Income ---------------------------------------- 1.52 TIMES - - - - - - - - - - - - - - - - - - - $2,750,000 Maturity - 25 years CITY OF SALINA, ltANSAS Financial Pro Fo~ Interest Rate Factor - 7% WATER AND SEWERAGE SYSTEM REVENUE BONDS EXHIBIT V SERIES 1977 TIllS ISSUE - SERIES 1977 TOTAL DEBT BOND RESERVE-THIS ISSUE SURPLUS ACCOUNT ANNUAL NET DEBT SERVICE ANNUAL ANNUAL TOTAL DEBT SERVICE ANNUAL ACCUMULATED ANNUAL ACCUMULATED MATURITY INCOME SERIES 1961 BONDS PRINCIPAL INTEREST SERVICE ALL BONDS TRANSFER RESERVE SURPLUS SURPLUS 1977 $ 793,619 (A) $ 183,097.50{B) $ -0- $ 192,500 $ 192,500 $ 375,597.50 $245,Ooo{C) $245,000 $418,021.50 $ 418,021.50{D) 1978 760,102 215,945.00 -0- 192,500 192,500 408,445.00 25,000 270,000 326,657.00 744,678.50 1979 717,590 215,365.00 -0- 192,500 192,500 407,865.00 25,000 295,000 284,725.00 1,029,403.50 1980 664 ,900 219,605.00 -0- 192,500 192,500 412.105.00 5,000 300.000 247,795.00 1,277.198.50 1981 601,052 218.485.00 10.000 192,500 202,500 420,985.00 -0- 300,000 180.067.00 1.457.265.50 1982 601,052 222,185.00 10,000 191,800 201,800 423.985.00 -0- 300,000 177.067.00 1.634.332.50 1983 601.052 225.525.00 10,000 191,100 201,100 426,625.00 -a- 300 .000 174,427.00 1,808,759.50 1984 601,052 223,310.00 10,000 190.400 200.400 423,700.00 -0- 300,000 177,342.00 1.986.101. 50 1985 601,052 225.910.00 10,000 189,700 199,700 425.610.00 -a- 300,000 175.442.00 2.161,543.50 1986 601,052 228,140.00 10,000 189,000 199,000 427.140.00 -a- 300.000 173.912.00 2,335.455.50 1987 601,052 -0- 100.000 188.300 288.300 258.300.00 -a- 300,000 342,752.00 2.678.207.50 1988 601,052 -0- 110,000 181.300 291,300 291,300.00 -0- 300,000 309,752.00 2,987.959.50 1989 601,052 -a- 120.000 173,600 293.600 293.600.00 -a- 300,000 307.452.00 3,295.411.50 1990 601.052 -a- 130,000 165,200 295.200 295,200.00 -a- 300,000 305,852.00 3.601.263.50 1991 601,052 -a- 140.000 156.100 296,100 296,100.00 -a- 300,000 304.952.00 3,906.215.50 1992 601,052 -0- 150,000 146,300 296,300 296,300.00 -a- 300,000 304.752.00 4.210.967.50 01 1993 601,052 -0- 165.000 135 ,800 300.800 300,800.00 -0- 300.000 300,252.00 4.511.219.50 c.o 1994 601,052 -0- 175,000 124,250 299.250 299.250.00 -a- 300,000 301.802.00 4.813.021.50 1995 601.052 -0- 185,000 112 ,000 297,000 297,000.00 -a- 300,000 304,052.00 5,117.073.50 1996 601.052 -0- 200,000 99,050 299.050 299,050.00 -a- 300,000 302,002.00 5,419,075.50 1997 601.052 -a- 215,000 85,050 300,050 300.050.00 -0- 300,000 301,002.00 5,720,077.50 1998 601,052 -0- 230,000 70,000 300,000 300,000.00 -a- 300,000 301,052.00 6,021,129.50 1999 601,052 -0- 245,000 53,900 298,900 298,900.00 -a- 300,000 302,152.00 6,323.281.50 2000 601,052 -0- 255,000 36,750 291,750 291,750.00 -a- 300,000 309,302.00 6,632.583.50 2001 601.052 -a- 270.000 18.900 288,900 288.900.00 -a- 300,000 312,152.00 6,944,735.50 $15,558,303 $2,177,587.50 $2,750,000 $3,661,000 $6,411,000 $8,588,587.50 NOTES: (A) 1977 net operating income based on a 40% water and sewer rate increase effective January 1, 1977. (B) Series 1961 Water and Sewage System Revenue Bond debt outstanding. (C) "BOND RESERVE" of $245,000 created immediately from funds on hand transferred from the "Water and Sewage Fund" authorized under Section 14 of Ordinance No. 6546. Additional monthly transfers of $2,083.33 commencing January 1, 1978 until a maximum of $300,000 is accumu1sted in the Bond Reserve for Series 1977 Bonds. (D) "SURPLUS ACCOUNT" funds to be used to: 1. Pay tba coat of operations and ..intenance and repair of the Water ad Sewage System. 2. ADticipatin& pa,..ots into the different accounts if needed. 3. PaYin& tba cost of iIlproving ad extending the system. 4. Rad..-iAg Bonds prior to maturity. SUMMARY: Average Annual Net Income -------------------- $622,332.12 Debt Service Requirements (All System Indebtedness) - Average Annual Debt Service -------------------------- 343.543.50 Maximum Debt Service (1986)---------------------- 427,140.00 Coverage Factors - Coverage of Average Annual Debt Service Requirements by Average Annual Net Income ---------.--------------- 1.81 TIMES Coverage of Maximum Debt Service Requirements by Net Income ----------------------------------- 1.45 TIMES Maturity - 25 yeara Intereat Rate Factor - 7% 0) o MATURITY 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 ANNUAL NET INCOME $ 793,619(A) 760,102 717,590 664,900 601,052 601,052 601,052 601,052 601,052 601,052 601,052 601,052 601,052 601,052 601,052 601,052 601,052 601,052 601,052 601,052 601,052 601,052 601,052 601,052 601,052 $15,558,303 DEBT SERVICE SERIES 1961 BONDS $ 183,097.50(B) 215,945.00 215,365.00 219,605.00 218,485.00 222,185.00 225,525.00 223,310.00 225,910.00 228,140.00 -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- $2,177,567.50 TIllS ANNUAL PRINCIPAL $ -0- -0- -0- -0- 10,000 10,000 10,000 10,000 10,000 10,000 115,000 125,000 135,000 145,000 155,000 165,000 180,000 190,000 200,000 215,000 230,000 245,000 260,000 280,000 300.000 $3,000,000 $3,000,000 CITY OF SALINA, KANSAS WATER AND SEWERAGE SYSTEM REVENUE BONDS SERIES 1977 ISSUE - SERIES 1977 TOTAL DEBT ANNUAL TOTAL DEBT SERVICE INTEREST SERVICE ALL BONDS $ 210,000 $ 210,000 $ 393,097.50 210,000 210,000 425,945.00 210,000 210,000 425,365.00 210,000 210,000 429,605.00 210,000 220,000 438,485.00 209,300 219,300 441,485.00 208,600 218,600 444,125.00 207,900 217,900 441,210.00 207,200 217,200 443,110.00 206,500 216,500 444,640.00 205,800 320,800 320,800.00 197,750 322,750 322,750.00 189,000 324,000 324,000.00 179,550 324,550 324,550.00 169,450 334,550 334,550.00 158,550 323,550 323,550.00 147,000 327,000 327,000.00 134,400 324,400 324,400.00 121,100 321,100 321,100.00 107,100 322,100 322,100.00 92,050 322,050 322,050.00 75,950 320,950 320,950.00 58,800 318,800 318,800.00 40,600 320,600 320,600.00 21,000 321,000 321,000.00 $3,987,600 $6,987,600 $9,165,167.50 SUMMARY: Average Annual Net NOTES: (A) 1977 net operating income baaed on a 40% water and aewer rate increa.. effective January I, 1977. (B) Series 1961 Water and Sewage System Revenue Bond debt outstanding. (C) "BOND RESERVE" of $245,000 created :Immediately from funda on hand tranaferred from the "Water and Sewage Fund" authorized under Section 14 of Ordinance No. 6546. Additional monthly tranafera of $2,083.33 commencing January I, 1978 until a maximum of $320,000 i. accumulated in the Bond Reaerve for Seriea 1977 Bonda. (D) "SURPLUS ACCOUNT" funda to be uaed to: 1. Pay the coat of operation. and maintenance and repair of the Water and Sewage Syatllll. 2. Anticipating paymenta into the different account a if needed. 3. Paying the coat of improving and extending the ayatem. 4. Redeeming Bonda prior to maturity. BOND RESERVE-TIllS ISSUE ANNUAL TRANSFER $245,Ooo(C) 25,000 25,000 25,000 -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- -0- ACCUMULATED RESERVE $245,000 270,000 295,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 320,000 Financial Pro Forma EXHIBIT VI SURPLUS ACCOUNT ANNUAL ACCUMULATED SURPLUS SURPLUS $400,521.50 $ 400,521.50(D) 309,157.00 267,225.00 210,295.00 162,567.00 159,567.00 156,927.00 159,842.00 157,942.00 156,412.00 280,252.00 278,302.00 277,052.00 276,502.00 266,502.00 277,502.00 274,052.00 276,652.00 279,952.00 278,952.00 279,002.00 280,102.00 282,252.00 280,452.00 280,052.00 709,678.50 976,903.50 1,187,198.50 1,349,765.50 1,509,332.50 1,666,259.50 1,826,101.50 1,984,043.50 2,140,455.50 2,420,707.50 2,699,009.50 2,976,061.50 3,252,563.50 3,519,065.50 3,796,567.50 4,070,619.50 4,347,271.50 4,627,223.50 4,906,175.50 5,185,177.50 5,465,279.50 5,747,531.50 6,027,983.50 6,308,035.50 Income -------------------- $622,332.12 Debt Service Requirements (All System Indebtedness)- Average Annual Debt Service ---------------------- 366,606.70 Maximum Debt Service (1986) ---------------------- 444,640.00 Coverage Factors - Coverage of Average Annual Debt Service Requirements by Average Annual Net Income ----------------- Coverage of Maximum Debt Service Requirementa by Net Income ------------------------------- 1. 70 TIMES 1. 35 TIMES I I I I I I I I I I I I I I I I I I I XII. SUMMARY AND RECOMMENDATIONS This Report has been designed to analyze and establish the requirements necessary to service additional Water and Sewage System Revenue Bonds, being cognizant of $1,820,000 Series of 1961 Revenue Bonds now outstanding and of the terms and condi- tions of Bond Ordinance No. 6546 for additional Water and Sewage System Revenue Bond Indebtedness. A test was run to evaluate the issuance of parity or co-equal bonds with the provisions and requirements of Ordinance No. 6546, which required a 135% coverage factor for the two fiscal years next preceding the issuance of additional bonds for the Series 1961 Bonds and any additional indebtedness. The earnings test shows that a 135% coverage factor is not sufficient; therefore, the new bonds to be issued will be junior lien to the Series 1961 Water and Sewage System Revenue Bonds; however, an improvement in today's bond market since August will be an advantage to this program. From this Report, we recommend an adjustment to present water and sewer rates to compensate for the additional debt ser- vice requirements and surplus accumulations. We are rec- ommending a 35% increase in both water and surplus rates for Exhibits I, II, and III, and a 40% increase for Exhibits IV, V, and VI. Weare also recommending that the increases in rates be implemented January 1, 1977 or as soon thereafter as possible. We are also recommending that the Notice ofIntent for any additional bonded indebtedness be published during the month of December 1976; and in the meantime, we will assimilate information to submit to Moody's Investors Rating Service for both the Series 1961 Bonds and Series 1977 Bonds. Mr. Norman Gaar of Stinson, Mag, Thomson, McEvers and Fizzell, Kansas City, Missouri, will prepare the necessary Bond Ordinance and any additional ordi- nances, resolutions, and notice of intent required for this issue ifit is the wish of the City Attorney. Weare recommending a possible bond sale within the next sixty (60) days of the writing of this Report; however, the amount of bonds to be issued and the water and sewer rate structure will have to be determined by the City Commissioners. 61 We appreciate the patience of the City Commission and City Administration; however, this Report is lengthy and detailed. The improvement of the bond market has made it imperative to recom- pute all six exhibits as the market has had at least a ~% to %% improvement in interest rates over the past 4 months, which is to the definite advantage of the City of Salina, Kansas for issuing additional junior lien bonds. By thoroughly appraising all of these items and studying this Report, the Governing Body must then determine a maturity schedule and amount of bonds to be issued, and utility rates to be increased which best fit the needs of the City. Respectfully submitted, FIRST SECURITIES COMPANY OF KANSAS, INC. By ~/lJf~1 Vice President December, 1976 62