Water & Sewer Condition & Operations 1964-1965
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
SALINA, KANSAS
1Q~ 4<<Ii SeM~ S~
CONDITION AND OPERATIONS REPORT
I LS 0 N
COMPANY
ENGINEERS i
ARCHITECTS.
SALINA - KANSAS
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I MARCH 1964
I (64-1 )
I
SALINA, KANSAS
WATER AND SEWAGE SYSTEM
CONDITION AND OPERATIONS REPORT
* * * * *
Gaylord Spangler, Mayor
Commissioners
R. W. Bull
Ralph Exline
Carl Rundquist
Donald Tucker
Leland Srack, City Manager
Harold F. Harper, City Engineer
Ron Webster, Director of Utilities
* * * * *
~ILSON
COMPANY
ENGINEE.RS
ARCHITECTS t
I
I
PURPOSE OF REPORT
I
Certain prov~s~ons of Revenue Bond Ordinance No. 6546, passed
13 July 1961, require biennial examination, by a firm of
qualified consulting engineers, of the condition, operation
and needs of Salina's water and sewage system. This exami-
nation shall determine whether any changes in operation are
desirable and the report of the examination shall include
recommendations in that regard. The report shall also make
reference to any unusual or extraordinary items of maintenance
and repair and any improvements that should be made in the
ensuing two-year period.
I
I
I
The ordinance further requires that the engineers certify
whet her or not, in the ir op inion, t he moneys in the "Comb ined
Water and Sewage System Extension and Bond Retirement Account"
are in excess of the amount reasonably required to be main-
tained in such account for extending, improving or enlarging
the City's combined water and sewage system, and, if so, the
amount of such excess.
I
I
I
I
I
I
I
I
I
I
I
I
1
I
I
I
1961 BOND ISSUE
I
On 13 July 1961, the City of Salina, Kansas authorized the
issuance of $3,600,000 in Revenue Bonds to be used to refund
the principal amounts of two previous outstanding bond issues
and "for the purpose of altering, improving, extending and
enlarging the waterworks of said city, .,. .and for the
purpose of altering, improving, extending and enlarging the
sanitary sewer system of said city (said waterworks and
said sanitary sewer system now having been combined into a
combined water and sewage system of said city)".
I
I
I
As of 31 December 1963, a majority of the previously planned
improvements to the combined systems had either been constructed
or were under construction. Receipt of a Federal Grant to
assist in the construction of the improvement to the sewage
treatment plant and judicious investing of unencumbered funds
have increased the total funds available for improvements,
as shown on the following tabulation:
I
I
I
UNENCUMBERED FUNDS
FROM 1961 BOND ISSUE
TOTAL FUNDS AVAILABLE
I
1961 Bond Issue
Federal Grant
Interest on Invested Funds
Estimated Interest on Invested Funds
to 1 July 1965 (18 Months)
$3,600,000.00
250,000.00
73,052.39
I
11 ,000.00
I
Total
$3,934,052.39
COMMITTED EXPENDITURES
I
To 31 December 1963
Contracted for 1964
$3,388,365.16
312,481.49
I
Total
$3,700,846.65
EXCESS AVAILABLE FOR 1964-1965 EXPENDITURES
I
$3,934,052,39
3,700,846.65
I
$ 233,205.74
I
I
2
I
I
I
BOND ISSUE EXPENDITURES
I
The following tabulation summarizes the expenditures for
improvements to the combined water and sewer system, such
expenditures being solely from the original bond issue or
income therefrom. All improvements are in accordance with
previous recommendations of Wilson and Company, Engineers and
Architects, Salina, Kansas, and of the City Engineer's Office.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
3
I
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
BOND ISSUE EXPENDITURES
Contracted
Actual Expenditures or Total Actual
Totals to Designed and Contracted
Item 1961 1962 1963 31 Dec 1963 1964 Expend it ures
Ao BOND REDEMPTION AND
PRELIMINARY PLANNING
l. Redeeming Outstanding
Revenue Bonds $1,182,000.00 $1,182,000.00 $1,182,000.00
2. Fiscal Planning 11,700.00 11,700.00 11,700.00
3. Engineering Studies $ 29,950.00 29,950.00 $ 9,800.00 39,750.00
B. CAPITAL IMPR OVEMENTS
1. Purchase of Water
Distribution System
+:- Materials 97,373.62 52,242.89 149,616.51 149,616.51
2. Sanitary Sewer Trunk
Line s 19,208.25 463,849.59 87,960.48 571 ,018. 32 2,000.00 573,018.32
3,. Sewage Treatment Plant
Improvements 688,900.15 170,191.41 859,091.56 859,091.56
4. Key Acres Elevated
Water Tower 75,884.94 44,120.00 120,004.94 120,004.94
5. North Front Street*
Water Main, 8-inch 38,389.88 38,389.88 38,389.88
6. South Fourth Street*
Water Main, 12~. inch 23,060.35 23,060.35 23,060.35
7. Water Treatment Plant
Improvements 329,500.79 329,500.79 237,455.54 566,956.33
8. Minor Water Distribution
System Improvements** 912.92 73,119.89 74,032.81 63,22.5.95 137,258.76
TOTALS $1,310,281.87 $1,297,887.48 $780,195.81 $3,388,365.16 $312,481. 49 $3,700,846.65
*Installation contracts only: materials furnished by Water Department and purchased under Item B-1.
**Represents City-at..1arge portion of water distribution system improvements within subdivisions, generally
increased costs for larger pipe sizes, and other small projects such as connecting feeder mains, etc.
I
I
I
ADDITIONAL IMPROVEMENTS
I
The City of Salina, in 1963, retained the engineering firm
of Bucher and Willis, Salina, Kansas to conduct a compre-
hensive study of the water distribution system of the City.
The results of the study were presented to the City Governing
Body on 25 February 1964. A number of improvements are
recommended and are listed by priority.
I
I
There are a number of improvements to the water treatment
plant and the sanitary sewer system recommended in earlier
engineering studies by Wilson and Company. Chief among
these are the Wayne Avenue Relief Sewer and a program of
separation of storm and sanitary sewers.
I
There is a continuing program of city participation in the
construction of subdivision extensions of the water and
sewer system to pay the increased cost of enlarging mains
as required by overall master planning.
I
I
A major expenditure item, not previously planned, has
arisen due to the collapse of a portion of a wall of the
river water desilting basin at the water treatment plant.
The damage resulted from a large ice block settling on
tie rods between the walls, with the weight of the ice
then pulling over one wall. It is estimated that repairs
will cost approximate ly $80,000. This cost is included
in the water treatment plant improvements.
I
I
I
The following tabulation indicates the amount and diversion
of costs of continued improvement to the combined water
and sewer system.
I
I
I
I
I
I
I
5
I
I
I
COMMITTED AND RECOMMENDED CAPITAL EXPENDITURES
FROM 1961 BOND ISSUE
I
See Bond Expendi.ture Schedule
for Cornmittments
I
Water Distribution System Improvements
Bucher & Willis, Engineers, 1964 Report
Priority I
Priority II
I
High Service Pump Main Connection
I
1964
$312.,481
100,000
10,000
1965
$63,205
Wayne Avenue Relief Sanitary Sewer
Wilson & Company, Engineers & Architects,
1960 Report 30,000 30,000
I
I
*Expends funds from bond issueo
Totals $452,481 $93,205*
FROM REVENUE
I
Water System Improvements,
City Engineer Projects
I
Water Department System Improvements
I
Water Distribution System Improvements
Bucher & Willis, Engineers, 1964 Report
Priority I
Priority II
I
North Ninth Street Benefit District
I
Variable Speed Sewage Pumps, 2 Stations
I
Separation of Storm & Sanitary Sewers
Wilson & Company, Engineers & Architects,
1960 Report
Totals
I
I
I
I
6
$ 60,000 $60,000
15,000 15,000
75,000
10,000
20,000
45,000
70,000
20,000
35,000
$225,000 $200,000
I
I
OPERATIONS AND MAINTENANCE
I
I
A comprehensive survey of the operations of the combined
water and sewage departments was conducted. The survey
included on-site inspection, examination of records and
examination of yearly reports of the various departments
within the combined utility.
I
The various departments are well equipped to perform their
various functions. It is reported that additional manpower
would be desirable in some departments to increase overall
effectiveness and service to the user. Maintenance, in
general, is routine in nature and accomplished according to
schedule and with reasonable dispatch.
I
I
The combined water and sewage department is excellently
operated and well maintained and there are no recommenda-
tions to be made in this regard.
I
I
I
I
I
I
I
I
I
I
I
I
7
I
I
I
REVENUE
I
Revenue is derived principally from a water rate schedule and
a sewer service charge schedule. Both schedules are based upon
customer usage. The sewer service charge schedule was established
at the time the water and sewage departments were combined, there
having been no previous direct charge for this service. The
sewer service charge schedule has been revised on several occasions
in the past two years, primarily to establish equitable rates for
special cases. The water rate schedule has remained unchanged.
The excess of total revenue over operating expenditures (not
including the bond issue debt service and reserve requirements
and capitol improvements), compared to the amount estimated by
First Securities Company in their "1961 Financial Feasibility
Report", is as follows:
I
I
I
I
1961
1962 1963
I
Actual Balance
Estimated By First Securities
$411,625
$377 ,949
$514,197 $456,503
$377,949 $377,949
I
The actual balance has been in excess of that estimated and
revenues appear to be adequate. It should be pointed out that
the last several years have been ones of near drought conditions
and water sales have been relatively high. A series of years
with high rainfall would undoubtedly reduce the amount of the
balance.
I
The following tabulation indicates the overall balance from all
operations with projections for the next two years, assuming
continuing reasonable amounts of net income and expenditures as
previously noted.
I
I
I
I
I
I
I
I
8
I
I
I
I
I
SURPLUS FROM REVENUE
I
I
1964 1965
1961 1962 1963 Estimates Estimatu,
_._-_...._---~
Number of Department Accounts, Average 13,193 13,425 13,310 13 , 400 13 ,':-00
INCOME FROM REVENUE
Net Income, Operations $411,625 $514,197 $456,503 $450,000 $460,000
Surplus, Previous Year 6,593 102,915 79,011 158,649 47,3)8
Tota 1 For Bond Requirements
and Capital Expenditures $418,218 $617,112 $535,514 $608,649 $507,358
EXPENDITURES FROM REVENUE
Net Transfer - Treasurery $ 4,751 $ 33,549 $-13,340 $ 5,000 $ 5,00,_)
Net Transfer - Operating Fund 78,147 -19,985 43,685 10,000 10,or)o
Princ ipa 1 & Interest Payments 107,242 248,624 234,270 230,541 226,378
Transfer to Reserve Accounts 34,000 129,500 112,250 90,750 58,500
Transfer to Extension & Bond
Retirement Account None 85,000 None None None
Capita 1 Expenditures from Revenue 91,163 61,413 None 225,000 200,000
Tota 1 Committments $315,303 $538,101 $376,865 $561,291 $49 9 , 8 78
SURPLUS $102,915 $ 79,011 $158,649 $ 47,358 $ 7,I+S0
I
I
I
I
I
I
I
I
I
I
I
I
9
I
I
CASH FUND ACCOUNTS
I
I
As of 31 December 1963, the Treasury and Operating and Main-
tenance Account, the Bond and Interest Account, the Bond
Reserve Account and the Depreciation and Emergency Account
are at or above the levels required by the Bond Ordinance
and as required by good management practices. The total
transfer to the Extension and Bond Retirement Account has
been $85,000.
I
I
At the current rate of revenue production and with the pro-
gram of planned expenditures, there will be no excess monies
in the Extension and Bond Redemption account.
I
A summary of the Cash Fund Accounts follows:
I
I
I
I
I
I
I
I
I
I
I
I
10
---------
-----
- -
- -
-
SUMMARY OF CASH FUND ACCOUNTS
Treasury
Operating and Bond and Bond Depreciation
Maintenance Interest Reserve and ~ergency
Balance, 12/31/61 $ 82,898.24 $107,242.64 $ 24,000 $ 10,000
Required by Ordinance 100,167.71 18,000 7,500
Balance, 12/31/62 $ 96,452.67 $105,497.99 $ 96,000 $ 67,500
Required by Ordinance 97,612.50 90,000 37,500
Balance, 12/31/63 $ 127 ,797.17 $118,125.76 $169,500 $ 106,250
>-' Required by Ordinance 96,258.33 162,000 67,500
I-'
Extension and
Bond Retirement
Cash and
Investments
$2,296,384.41*
$ 85,000
$1,656,56L51*
$ 85,000
$ 509,687.23*
*Portions of these funds encumbered by contract, to be paid in ensuing year.
I
I
CONCLUSIONS
I
The results of this study and analysis indicate that no changes
in operation are necessary or desirable; that the only extra-
ordinary item of maintenance or repair is the repair of the
desilting basin, estimated to cost $80,000.00; that the excess
funds in the "Combined Water and Sewer System Extensions and
Bond Retirement Account", as shown by the table entitled
"Surplus from Revenue", are not in excess of the amount
reasonably required to be maintained in such account for
extending, improving or enlarging the City's combined water
and sewer system; and that no changes in the rate structures
appear to be desirable during the 1964-1965 period.
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
12