Untitled (12)
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
J
..
I
I
SALINA, KANSAS
Water and Sewerage System
CONDITION AND OPERATIONS REPORT
FOR THE YEARS 1974, 1975, 1976 & 1977
WITH RECOMMENDATIONS FOR 1978 & 1979
mlLSON
COMPANY
ENGINEERS
ARCHITECTS 1
I
I
I
I
II
I
I
I
I
I
I
I
I
I
I
I
I
I
I
AUGUST 1978
(78-047)
SALINA, KANSAS
WATER AND SEWERAGE SYSTEM
CONDITION AND OPERATIONS REPORT
FOR THE YEARS 1974, 1975, 1976 & 1977
WITH RECOMMENDATIONS FOR 1978 & 1979
*****
Jack P. Weisgerber, Mayor
/'
Commissioners
Keith G. Duckers
Dan S. Geis
Karen M. Graves
Gerald F. Simpson
Norris Olson, City Manager
Ron Webster, Director of Utilities
]ILSON
COMPANY
ENOINI!I!IlS
Aile HlTl!CTS f
I
I
PURPOSE OF REPORT
I
I
City of Salina Ordinance Number 6546, dated 13 July 1961, which provides
for the issuance of revenue bonds for the purpose of altering, improving,
extending and enlarging the municipal waterworks and sewerage systems,
contains, in part, the following requirements:
I
Section H(e). "At least once in every two years the City's consulting
engineers hereinafter referred to in Section 15(d) of this ordinance, after
making their examination and report on the condition, operation, and needs
of the City's combined water and sewage system as provided in said Section
15(d), shall, by written instrument filed in the office of the City Clerk.
. . , certify whether or not in their opinion, the moneys in the 'Combined
Water and Sewage System, Extension and Bond Retirement Account' are in
excess of the amount reasonably required to be maintained 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
Section 15(d). "At least once in every two years the City will employ an
independent consulting engineer or firm of consulting engineers having a
reputation for knowledge, skill and experience in the construction and
operation of municipal water and sewage systems and will cause such con-
sulting engineer or engineers to make an examination and report on the
condition and operation of the City's combined water and sewage system,
such report to include recommendations as to any changes in such operation
deemed desirable. Such report shall also make reference to any unusual or
extraordinary items of maintenance and repair and any improvements or
extensions that may be needed in the ensuing two-year period."
I
I
I
The first four reports were prepared in 1964, 1966, 1968 and 1970. The
information required for the 1972 report, covering the years 1970 and 1971,
was included in the Engineering Report entitled "Water Distribution Study",
dated August 1972. The last Condition and Operations Report covered the
years 1972 and 1973, and was prepared in June 1974.
I
I
This report covers the years 1974, 1975, 1976 and 1977, with recommenda-
tions for 1978 and 1979. In view of the fact that many water and sewer
department capital improvement projects are now under construction, it was
deemed appropriate that the current condition of the systems be mentioned.
I
I
I
I
I
1
I
I
I
1961 BOND ISSUE
I
I
On 13 July 1961, the City of Salina, Kansas, authorized the issuance
of $3,600,000 in Revenue Bonds, the proceeds 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 sew~ge system of said City)."
I
I
The 1961 Bond Issue was supplemented by a $250,000 Federal grant to assist
in the construction of improvements to the sewage treatment plant. The funds
available for improvements to the water and sewerage system after refunding
previous bond issues were as follows:
I
1961 Bond Issue
Federal Grant
$3,600,000
250,000
I
"
Total Funds Available for All Purposes $3,850,000
I
Previous Bond Issues Refunding 1,182,000
Total Funds Available for Improvements $2,668,000
I
I
The funds have now been expended. (See next page)
I
I
I
I
I
I
I
2
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
1961 BOND ISSUE EXPENDITURES
The following tabulation summarizes the expenditures for improvements to
the combined water and sewerage system, such expenditures being solely from
the original bond issue, Federal Grant and investment income. All improve-
ments are in accordance with recommendations of the City's Consulting
Engineers and of the City Engineer's Office.
Key Acres Elevated Water Tower
North Front Street Water Main
South Fourth Street Water Main
Water Treatment Plant Improvements
Sanitary Sewer Trunk Mains
Sewage Treatment Plant Improvements
Purchase of System Materials and Minor
System Improvements
Planning and Engineering
Water Main to Westinghouse
Water Main to Schilling
City-County BUilding, Water and Sewer
Services
South Industrial Area (Roberts Mfg.)
East North Street (Wyatt Mfg.)
Miscellaneous Extensions and Improvements
TOTAL EXPENDITURES
*Includes investment income.
3
$ 120,005.00
38,390.00
23,060.00
566,956.00
573,018.00
859,092.00
237,602.00
51,450.00
75,000.00
49,603.00
36,028.42
15,702.29
19,589.68
2,497.09
$ 2,847,993.48*
I
I
1977 BOND ISSUE
I
I
I
I
I
On 1 April, 1977, the City of Salina, Kansas, issued Revenue Bonds in the
amount of $3,000,000, the proceeds of which are to be used to finance the
construction of several large water distribution and storage improvements
and the City's share of the construction of the water treatment plant
sludge disposal facilities. The water distribution system improvements
consist principally of large-diameter feeder mains. The storage improve-
ments consist of a 0.5 million-gallon elevated water storage tank in the
extreme northern edge of the City. The need for all of these improvements
has been evident for many years, having been recommended in Engineering
Studies of the water distribution system. The sludge disposal facilities
were demanded by the Environmental Protection Agency, as a means of pollu-
tion Control of the Smoky Hill River.
The descriptions and estimated costs of each of the foregoing projects are
included in the Section - SYSTEM IMPROVEMENTS.
I
In order to obtain an improved retirement schedule of the bonds issued on 1
April, 1977, the City Commission, in early 1978, combined the 1977 revenue
bond issue with the 1961 revenue bond issue and refunded the combined
,
issue. At that time, also, the water and sewerage department projected
revenues were studied and rate schedule adjustments. were programmed in
order to assure maintenance of the proper debt coverage ratio. (See
Appendix "A" for the financial study made in connection with the bond
refunding.)
I
I
I
I
II
I
I
I
I
I
4
I
I
I
I
I
SYSTEM IMPROVEMENTS
The Conditions and Operations reports prepared in 1964, 1966, 1968, 1970,
1972 and 1973 each contained recommendations and budget estimates of cost
for system improvements deemed necessary during the ensuing two-year period.
These recommendations pertained principally to short-range improvements or
to the planning or first phase construction of long-range improvements.
I
I
Long range water system improvements were studied in the Engineering Reports
prepared in 1968, 1970 and 1972.
The 1968 report dealt principally with potential sources of water supply
over a 40-year period and included recommendations regarding future water
supply, treatment, transmission and distribution facilities.
I
The 1970 report was limited to recommendations regarding the expansion of
the present water treatment plant and the collection and disposal of all
plant wastes.
I
The 1972 report included a very comprehensive study and analysis of the
water distribution system, a recommended 5-year capital improvements pro-
gram for the water system and a financial study. As a result of this
study, the City Commission adopted an increased water rate schedule which
was placed in effect on 1 January 1973.
I
I
The following table lists the major capital improvement projects financed
by current Water and Sewerage Department revenues for the years 1974, 1975,
1976 and 1977, and describes and estimates the cost of other capital improve-
ment projects planned for 1978 and 1979, which likewise, will be financed
through current revenues.
I
I
I
I
I
I
I
I
5
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Projects Constructed
Year
1978
1978
1978
1978
1978
1978
1978
1978
1978
1978
1978
1979
1979
Year
Project
1974 Byrd Rd. Water Main, 12-inch $
1974 Sewer Cleaning Machine
1974 Planet Avenue Water Main, 12-inch
1974 Byrd Rd. Sew. Pumping Station
1974 Wayne Avenue Water Main, 12-inch
1974 New River Water Pump
1974 Repaint SUnset and Key Acres Elevated Tanks
1975 Storage Building at S.T.P. *1
1976
1976
1976
1976-77
1977
1977
Lakewood Sew. Pumping Station
Key Acres Sew'. Pumping Station
Flowmeter and Sampler, portable
Replace Treatment Basin Equipment, W.T.P.
Air Compressor
Sullivan Water Main, 12-inch
TOTAL
4-year average
Projects Proposed
Project
Parshall Flume, STP No. 2
Hocking Water Main, 12-inch
Hocking Sew. Pumping Sta.
Power Winch for T.V. Unit
Video Tape Recorder for TV Unit
3-Ton Truck w/2,000 Gallon Tank
Emergency Alarm for Monitoring Pump Sta.
Water Main to STP No.1, 6-inch
IS' x 40' Office Bldg. & Locker STP No. 1
New Water Meters (domestic)
New Lab Equipment at WTP
New Chlorinators for Airport area
New Water Meters (domestic)
Estimated Total
Annual Average
6
Cost
31,862
18,000
620
3,000
14,767
5,744
17 ,469
25,000
13 ,385
34,321
5,000
133,729
5,666
45,777
$ 354,340
$ 88,585
Est. Cost
$ 8,536
30,845
44,663
2,800
2,980
14,000
13,800
30,000
20,000
79,740
3,434
30,000
19 ,111
$ 299,909
$ 149,955
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
In June, 1973, the City Commission authorized the preparation of documents
for submission to the Environmental Protection Agency to enable the City to
obtain grant funds to assist in the construction of sludge collection and
disposal facilities for water treatment plant sludges. The grant applica-
tion was subsequently approved by EPA in the amount of 75 percent of the
eligible construction costs (not including costs for land purchases and
temporary financing).
In November, 1974, the City Commission authorized the construction of the
project, basically as outlined in the EPA grant application.'
Construction of the project commenced in October, 1977, and will be com-
pleted in August, 1978.
The City's share of the project cost is approximately $270,538.00. This
amount was financed through the issuance of Water and Sewage System Revenue
Bonds, totalling $3,000,000.00. That bond issue, however, also included
funds for the construction of many improvements to the water distribution
and water storage systems, as shown by the following tabulation. The
majority of these projects will be constructed in 1978.
Projects Financed Through $3,000,000 Revenue Bond Issue
Year
Project
1978
1977-78
1978
WTP Sludge Disposal Facilities
Water Main, 30-inch, WTP to Ohio and Crawford
Water Main, 20-inch, Ohio, Crawford to Magnolia,
and on Magnolia, Ohio to Ninth Street
Northwest Water Main, 12-inch
Northwest Elevated Water Tank, 0.5 mg
North Fourth Street Water Main, 20-inch, Water
Plant to Santa Fe and Lincoln, and Water Main,
20-inch, West Crawford, Santa Fe to Broadway
1978
1978
1979
TOTAL
I
I
7
Cost
$ 270,538
586,736
528,422
385,000
324,500
904,804
$ 3,000,000
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
REVENUE
Revenue is derived principally from a water rate schedule and a sewer
service charge schedule. Both schedules are based on customer water usage.
The sewer service charge schedule was established at the time the water and
sewerage departments were combined, there having been no previous direct
charge for this service. The sewer service charge schedule has been revised,
on occasion, primarily to establish equitable rates for special cases. A
new water rate schedule was placed in effect on 1 January 1973. The excess
of total revenue over operating expenditures (not including the bond issue
debt service, reserve requirements and capital improvements), compared to
the amount estimated by First Securities Company, in their "1961 Financial
Feasibility Report," is as follows:
Estimated By
~ Actual Balance First Securities
1961 $ 411 ,625 $ 377,949
1962 514,197 377,949
1963 456,503 377 ,949
1964 421,609 377,949
1965 345,014 377 ,949
1966 339,345 377,949
1967 330,053 377 ,949
1968 304,604 377,949
1969 296,650 377,949
1970 249,372 377,949
1971 283,527 377,949
1972 276,709 377 ,949
1973 511 ,656 377 ,949
1974 383,112 377 ,949
1975 317,599 (Not
1976 270,459 Appli-
1977 646,065 cable)
During the first four years after issuance of the 1961 revenue bonds the
actual balance was well in excess of that estimated. These were relatively
dry years and Schilling Air Force Base was operating at full strength. In
the succeeding eight years, the balances dropped somewhat below the estimated
figures.
I
I
I
I
The conversion of Schilling to commercial, industrial and institutional
facilities and the construction and operation of the new industries in the
South Industrial Area and elsewhere, are bringing about substantial increases
in Salina's population and the number of water and sewer accounts. Sewer
revenues have become relatively stable.
City Ordinance No. 6546 required that the City "maintain and collect rates,
fees and charges for the use of or services rendered by its combined water
and sewage system which will be sufficient to enable the City to have in
each fiscal year a net operating income from such system in an amount that
8
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
will be at least one hundred thirty-five percent (135%) of the amount
required to be paid by the City in such year on account of both principal
of and interest on the bonds herein authorized at the time outstanding."
The water and sewer departments are now operating under Ordinance No. 8635,
dated 15 May, 1978. This ordinance contains the same requirements with
regard to the rate schedules, but changed the debt service ratio from 135
percent to 130 percent.
The following table indicates the Water and Sewer Department income posi-
tion as compared to the requirement of the ordinance.
Principal
Sold Gross Total Operating & Interest Ratio
Year (M. Gal.) Income Expenses Income Payments (in Percent)
1961 1,376.8 $804,342 $507,604 $411,625 $107,242 *
1962 1,420.0 976,057 545,794 514,197 248,624 207.0
1963 1,434.7 960,374 726,104 456,503 234,270 195.0
1964 1,489.9 941,380 519,771 421,609 231,318 182.0
1965 1,260.3 848,321 503,307 345,014 228,965 151.0
1966 1,422.3 869,145 529,800 339,345 223,458 152.0
1967 1,364.0 901,731 571,678 330,053 222,670 149.0
1968 1,552.0 950,135 645,531 304,604 219,215 139.0
1969 1,640.6 1,006,996 710,346 296,650 220,479 134.5
1970 1,748.0 1,031,720 782,348 249,372 216,574 115.1
1971 1,706.5 1,052,673 791,146 283,527 212,669 133.3
1972 1,644.4 1,034,939 758,230 276,709 213,770 129.4
1973 1,678.0 1,367,809 856,153 511,656 209,702 244.0
1974 1,640.0 1,403,056 1,019,944 383,112 210,648 181. 8
1975 1,673.5 1,479,944- 1,162,342 317,602 211,091 150.4
1976 1,740.3 1,560,950 1,290,488 270,462 211,386 128.0
1977 1,721.1 1,993,588 1,347,523 646,065 216,442 298.5
*Not a .full year of operation.
The required ratio of 135 percent was not maintained from 1969 through
1972, and again fell below the requirement in 1976. This deficiency, plus
the need to issue additional revenue bonds for new system improvements,
required that the Governing Body establish a new rate structure for the
Water and Sewer Departments. The new rate was placed in effect on 1
February, 1977 and resulted in increase in the debt service ratio for the
year 1977.
Plate I indicates graphically the number of accounts and the Water and
Sewer Department revenues, operating expenses and debt service on an annual
basis since 1961.
I
I
9
t>
....::i
..
J!i tl .
~~ ...
........ g
~w..
LL~ .
:gtstj '"
- ...
W .. .~
... W~ .:l
:l /:jW~
~O -'
L ~..
W" ~
t> > W ~
..W,",
~..:E W
~ ..,
... \ \ .. -' .. .
W~
\ ... ....~
, '- ~..
, ...
~
\ -
,
, '. ~ ",
,
\
\ I\. l\.
,
, \ "- "
, . ",
, \ "
,
,
. ~ 1'-,
,
, 1\
,
, """
, r--.
.
/.-i. - '- \
( , ;"'-
, W
, '- "\ ~
. ..
'" I L
...- , ~
..~ , W
~W ,
0<> , I ..
..,~
..,.. , ..
"'W , ...
> .
~... .~
..
0-, , W I
..... . I L
W~ , 0
,",Z -'
:EZ ~
~~ ~
Z_ Z
, Z
, '\ j
, \.
.
,
.
, \
,
, '. 1\
, \
\
" LA. \ \
, --....,
\
\ \ 1\
.!. 1\ ~ \
~ \ ~
.. Z
\ W W
> L
, W ~
W
I -' I W '.
.. ..,
, "" Z-
" \ ->
.. ......
, .. ""W
. "" .. ~
, W
~...
, g l 0,",
W
, -' 0
, .... ~
~~
i Z ~
, Z -'
, ""L
, I
I
. !
.
I
. I 1/
I !
I /
I
!
~ 8 't! 8 8 " "" \
0 ~ ~ ",
.,; I' f"'-
!t !i N
-
ltnlA "UIUlO))y JO UIlf'l1l
t> <>
fi\ B
N col
<>
<>
..
.;
8
"t
N
<>
2
N
~
N
~
~ ~
<>
"
~
8
~
8
...
8
"!
~
g
.
~
Ii:
g
'"
8
...
8
...
8
"'
SUY1100 ~O SoNvsnONl
I
I
CASH FUND ACCOUNTS
I
I
As of 31 December, 1977, all bond accounts are at or above the levels
required by the current Bond Ordinance, and as required by good management
practices.
I
Since 31 December, 1974, no funds have been maintained in the Extension and
Bond Retirement Fund. Moneys for extending, improving or enlarging the
City's combined water and sewer system have been obtained from surpluses in
the Treasury and Operating and Maintenance Fund, and from the Depreciation
and Emergency Fund where applicable.
I
From 1968 through 1976, no new Revenue Bond Issues were required for capital
improvements to the water and sewer system.
I
I I
The major capital improvements projects now under construction are being
financed by the 1977 Revenue Bond Issue, as described earlier in this
report.
A summary of the Cash Fund Accounts follows:
I
I
I
I
I
I
I
I
I
I
10
I
I III ...:t '" .... .... .... .... ....
'" CO '" CO '" '" '" ....
GJ <"> Lt'l '" '" ...:t ...:t CO GJ GJ GJ GJ
GJ . . . . . c:l c:l c:l c:l
u '" I '" I '" I '" I CO I <"> I <"> I 0 I 0 I 0 I 0
0'" '" Lt'l 0 ...:t '" '" .... f z z z
... g '" '" Lt'l '" .... .... :J,:.
I p..~ . . :J,: :J,: :J,: :J,:
'" ....
'" :J,:
c:l <h-
0 :J,:
al
I
'"
c:l c:l 0 0 .... '" '" '" .... Lt'l '" <">
I 0'" " 0 0 .... '" .... .... '" '" '" ....
.... c:l 13 0 0 .... eo '" ...:t Lt'l '" 0 '"
III 0 " . . . . . .
c:l al ... Lt'l I Lt'l I .... I 0 I ...:t , 0 I ...:t I 0 I CO I '" I
GJ .... CO CO CO '" '" Lt'l '" CO '" 0
"''''''' '" '" .... .... ....
I ~ c:l GJ
~"l>:: <h-
c:l u i< i< i< i< i< i< i<
0 c:l 00 00 00 00 COO COO .... 0 "'0 "'0 ....0 Lt'l0
I .... '" 00 00 Lt'l0 "'0 ...:to ....0 0 0 ...:to ...:to "'0 00
'" 0Lt'l Lt'lLt'l "'Lt'l ...:tll'! 00 Lt'l0 ...:t 0 ",0 ...:to Lt'l0 "'0
.. ... . . . . . . . . . .
.... GJ 0.... .... .... "'.... "'.... ...:tLt'l "'Lt'l ....Lt'l ...:tLt'l "'Lt'l Lt'lLt'l Lt'lLt'l
U 13 .... "'''' 0'" "'''' "'''' "'''' ...:t'" Lt'l'" "'''' ....'" CO'"
"'~ .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... ....
...
I 1><'" <h-
GJ c:l
~..
i< ~ ~O i< i< i< ic
en 00 00 00 ....0 "'0 0 Lt'l0 Lt'l0 ....0 ...:t 0
I E-< GJ 00 00 00 lI'!O CO 0 .... 0 "'0 "'0 "'0 ....0 '" 0
g t 00 00 Lt'l0 COO Lt'l0 '" 0 "'0 00 "'0 ...:to '" 0
'" . . . . . . . . . . .
c:l " ...:teo "'0 "'''' ...:t...:t ...:to ....0 ...:to COO ....0 "'0 ...:to
U 0 III "'.... "'''' "'''' ...:t'" 00 ....0 "'0 ...:to "'0 "'0 "'0
u al " .... .... "'''' "'''' "'0'1 0'10'1 0'10'1 0'10'1 0'10'1 ...:to'1
I ...: l>::
<h-
~
"'CO CO'" ",eo CO'" ",eo Lt'l'" eo CO 0'1'" ",eo o eo ~~
I ~ '" '" ...:t'" '" .... "'lI'! 0.... ...:teo eo .... "'.... ....'" "'...:t Lt'l'"
en c:l III "'.... ...:t", ....N ON N'" 0.... ....'" "'N "'.... "'...:t 0'1'"
...: .. '" . . . .
U ... ....0 Lt'l.... eo", ...:tLt'l "'N O'1N "'.... ...:t.... ...:t.... ...:teo ...:teo
'" GJ 00 0", .... '" NO'> .... '" 00'> '" '" 0'" 0'" oeo oeo
~ c: '" .... .... .... .... .... .... .... .... .... .... ....
I o c:
al.... <h-
I
I
en
'"
'" c: '"
c: .. u eo '" .... ...:t '" '" .... Lt'l ...:t Lt'l Lt'l
.. c: '" Lt'l '" '" 0 ...:t 0 eo Lt'l .... ....
.... eo ...:t .... Lt'l .... eo '" N .... N '"
I i;'C:C: . I . I . I . I . I . I . I . I . I . I . I
.... '" N '" .... ...:t '" 0 0 '" 0 N 0'1
,,"'... eo '" '" '" eo '" '" N '" .... CO
III .. c: .... .... .... N .... .... .... ....
m Sol 'r-!
GJ '" .. <h-
I ... I>< x:
E-<O
GJ '" GJ " GJ " GJ " " GJ GJ
I u u u u u u u u u u u
c: c: c: c: c: c: c: c: c: c: c:
.. .. .. .. .. .. .. .. .. .. ..
.... c: '" c: 0'1 c: ...:t c: Lt'l c: '" c: .... c: eo c: c: c: c:
'" .... '" .... '" .... '" .... '" .... '" .... '" .... '" .... '" .... 0.... .... ....
.....'" .....'" .....'" ....."" ....."" ....."" ....."" ....."" "''''' ...."" ....""
.... ... .... ... .... ... .... ... .... ... .... ... .... ... .... ... ........ ........ ........
I 0'10 "'0 0'10 0'10 0'10 0'10 0'10 0'10 ....0 ....0 ....0
..... ..... ..... ..... ..... ..... ..... ..... 0'1 <"> 0'1
N>> N >> N>> N>> N>> N>> N>> "'>> .....>> .....>> .....>>
...."" ...."" ...."" ...."" ...."" ...."" ...."" ...."" N"" "''''' N""
.... .... ....
."" .", .", ."" ."" .", ."" ."" '" "" '"
GJ IV GJ IV '" '" " " GJ " " '" GJ GJ " '" IV GJ GJ GJ GJ '"
I u ... u ... u ... u ... u ... u ... u ... u ... u ... u ... u ...
c: .... c:l .... c:l .... c:l .... c:l .... c:l .... c:l .... c: .... c: .... c:l .... c:l ....
.. " .. " .. " .. " .. " .. " .. " .. " .. " .. " .. "
.....'" .....'" .....'" ..... '" .....'" .....'" ....'" ..... '" .....'" .....'" ..... '"
.. GJ .. GJ .. " .. '" .. " .. " .. GJ .. " .. " .. IV .. "
all>:: I'll>:: I'll>:: all>:: all>:: I'll>:: all>:: all>:: all>:: .1Q l>:: all>::
I
I 11
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
CAPITAL IMPROVEMENT PROGRAM
Following the $3,600,000 reVenue bond issue in 1961, it was not necessary
for the City of Salina to issue additional revenue bonds for its combined
Water and Sewerage Department until early in 1977. All debt services,
operating expenses, extensions and betterments during that period were
financed from water revenues and sewage service charges. It was necessary,
however, to increase the water rates at the beginning of 1973 and again in
1977, the latter increase being required to offset the increased debt
service requirement of the 1977 revenue bond issue. Under the new rate
schedule, there was an increase of approximately $240,000 in available
funds in 1977 over the amount available in 1976, as shown by the following
table:
FUNDS AVAILABLE FOR CAPITAL IMPROVEMENTS
Year 1974 1975 1976 1977
ASSETS (CASH)
Water & Sewage Treasury $ 273,385 $ 291,005 $185,437 $ 461,467
Water & Sewerage Operating
Account 81,841 20,289 98,856 14,028
Ext. & Bond Retirement Fund 59,893 None None None
TOTAL ASSETS $ 415,119 $ 311 ,294 $284,293 $ 475,495
LIABILITIES
Accounts Payable 68,984 133,548 102,896 53,222
BALANCE $ 346,225 $ 117,746 $181,397 $ 422,273
13
I
I
REVIEW OF EARLIER RECOMMENDATIONS
I
I
The Conditions and Operations report of 1970 contained recommendations
regarding nine items of improvement. These recommendations, and the action
that has been taken by the City are as follows:
I
1. Water Rate Increase. A new water rate schedule, designed to
increase water revenues by 50 percent was placed in effect on 1 January
1973.
I
2. Billing Equipment and Methods. New computer equipment has been
purchased and billing methods have been completely modernized.
I
3. Procedure Manual. A new manual of uniform procedures has been
prepared and is being used.
I
4. Disposal of Water Plant Wastes. Construction of this project is
nearing completion. It was financed by an EPA Grant in the amount of 75
percent of the eligible costs, with the City's share being financed from a
portion of the 1977 $3,000,000 Revenue Bond Issue. Operation of the facility
will increase the system operating costs for power, labor and maintenance,
but the added costs have been provided for in the water rate schedule now
in effect.
I
I
5. Long Range Water Study. The Engineering Study has been prepared
and approved by the City. City Officials are 'keeping water storage appli-
cations "alive" but have not as yet undertaken the recommended ground water
survey in the Smoky Hill Valley.
I
I
I
I
6 & 7. Arterial Water Mains and Reinforcing Mains. Construction of the
recommended Arterial and Reinforcing Water Mains has been undertaken and a
large portion is substantially complete. The remainder is scheduled for
construction in 1978 and 1979. These projects are being funded by the 1977
Revenue Bond Issue.
8. Monitoring Observation Wells. This recommendation is being
followed.
I
9. Relief Sewer. The Wayne Street relief sewer as previously recom-
mended has not as yet been undertaken. With the current rate of commercial,
industrial and residential development in the areas south of Wayne Avenue
and west of the Missouri Pacific railroad, it is now recommended that
additional sewage flow studies of the entire area be undertaken and an
updated plan of area sewer development be established. The plan should
include a new sewage pumping station and eventual abandonment of the
Schilling waste treatment plant.
I
I
I
I
14
I
I
I
I
I
I
I
I
I,
I
I
I
II
I
I
I
I
I
I
L
NEW RECOMMENDATIONS
1. Old Smoky Hill River Channel.
percent of its annual water supply from
and 30 to 40 percent of its supply from
The City now
the Old Smoky
wells.
obtains from 60 to 70
Hill River Channel
The Salina Flood Control Project, constructed by the U.S. Corps of Engineers
and completed in 1961, included a cut-off channel which separated the River
from the built-up portion of the City. A maximum flow of 100 cubic feet
per second was allowed to continue through the original river channel, on
which is located the City's River Intake Facilities. The extremely low
flow has resulted in excessive clogging of the River Channel upstream from
the City's intake structure to the upper end of the River cut-off channel.
The City Commission began actively to seek a solution to the clogging
problem and its serious consequences. In January, 1978, the City Commis-
sion authorized Wilson & Company to conduct a study of the Old River Channel,
the objective of which was to evaluate concepts for beautification, recrea-
tion enhancement, stabilization of the Channel and banks, alternative
concepts for dealing with the progressive siltation and aggradation of the
old channel and maintenance of the water supply to the raw water intake at
the water treatment plant.
The study was completed, delivered to and discussed with the City Commis-
sion in the spring of 1978. The study projected that the old channel above
the Western Star Mill Dam would be completely full of silt sometime between
1983 and 1984, terminating the supply of water to the raw water intake.
Several solutions to the problems were considered and analyzed and con-
struction costs were prepared for each alternate method.
The recommended plan includes the construction of a gravity inflow pre-
sedimentation basin, designed for a flow of 50 cubic feet per second and
located near the upper end of the Old River Channel. This basin would
remove a major portion of the silt, return the settled silt to the cut-off
channel of the river and all~w the clarified water to continue in the Old
River Channel to the raw water intake and beyond. The plan also includes
dredging and sloping of the Old River Channel between the Old Mill Dam and
the sedimentation basin and the removal of debris and aquatic vegetation
downstream from the Old Mill Dam to the present outlet at the River.
In addition, the plan includes the development of a parkway system for the
entire length of the Old River Channel.
The City Commission is now considering the recommended plan and the alterna-
tive plans and soliciting public support for a project which will insure
continuation of the raw water supply from the River. They are also investi-
gating the availability of Federal funding for a portion of the project
cos t.
It is recommended that the City Commission pursue these considerations
actively to insure that an acceptable project is implemented in the near
future to assure continued use of this raw water source.
15
I
I
I
2. Restoration of Sewage Gas Utilization. The operating personnel
of Waste Treatment Plant No. 1 have been rehabilitating the sewage gas
collection and burning system to utilize as much of the sewage gas as
possible for digester heating and for other purposes at the treatment
facility. Completion of the remodeling work will improve plant operation
and result in substantial savings in fuel costs, as well as to reduce plant
odors.
I
I
It is recommended that efforts to complete the remodeling work be expedited
to achieve full utilization of the excess sewage gas.
I
I
I
I
I
I
I
I
I
I
I
I
I
16
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
OPERATIONS AND MAINTENANCE
A survey of the operations of the combined water and sewerage department
was conducted. The survey included on-site inspections, examination of
records and reports, and interviews with department personnel.
The combined water and sewerage department is well equipped to perform the
required services to the community. Maintenance, in general, is routine in
nature and is accomplished according to schedule and with reasonable dispatch.
The combined water and sewerage department is execeptionally well managed
and operated. Administrative personnel are knowledgeable and operate a
business-like, efficient public utility.
In the course of interviews with Department Staff personnel, several matters
were discussed which appear to merit consideration for further study and
appropriate action:
1. The arterial and reinforcing water main project now under con-
struction should be completed and placed in operation. This project includes
(1) a 30-inch water main on Fifth Street from the high service pump station
to Santa Fe Avenue, thence South on Santa Fe to Crawford, thence east on
Crawford to Ohio; (2) a 20-inch water main on Ohio from Crawford to Magnolia,
thence west on Magnolia to Ninth Street; (3) a 20-inch water main on West
Crawford from Santa Fe to Broadway Boulevard; (4) a 12-inch water main on
Grand Avenue from Woodlawn to Ninth Street, thence north on Ninth Street to
Euclid Avenue and the proposed elevated tank; (5) a new 0.5 million gallon
elevated water tank near Ninth Street and Interstate 70; (6) water main,
20-inch, north Fourth Street, from Water Plant to Santa Fe and Lincoln; (7)
a new 20-inch water main on Marymount Road from Greeley south to Crawford,
thence east on Crawford to the proposed shopping center area.
The first two of these projects are substantially complete, and plans and
specifications for items (3), (4) and (5) are being prepared. Depending
upon the urgency of the need for the improvements and the availability of
funding, there is a possibility that item (7) may be substituted for item
(6). This.change is being considered.
2. Furnish City water supply to Waste Treatment Plant No.1. This
may be accomplished most economically by constructing a new 6-inch water
main from the end of the present water main on Eastborough north across the
Smoky Hill River to the Plant. .
3. There are no major items of maintenance of the sewerage system
mentioned by the operating personnel which have not already been requested
or provided for in the City budget.
4. Major items of maintenance of the water system includes:
!. Relining or possible replacement of the sludge holding tank
within the Calcining Building of the Water Treatment Plant.
I
I
17
~~
I
I
I I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
~. Repair or possible replacement of the mechanisms on the roof
of the Calcining Building to reduce the amount of escaping lime dust.
5. Conduct the proposed ground water hydro-geological survey in the
Smoky Hill Valley between Salina and Bridgeport.
6. Other than those stipulated in Paragraph 4, above, there are no
items of unusual repair or maintenance within the ensuing two years in the
Water Department Facilities.
I
I
18
I
I
I
I
I
I
I
CONCLUSIONS
The results of this study and examination indicate that, as of 31 December
1977, the funds in the Extension and Bond Retirement Account as shown in
the Summary of Cash Funds Account Table are not in excess of the amount
reasonably required to be maintained in such account for extending,
improving or enlarging the combined water and sewerage system of the City
of Salina, Kansas. The reserve accounts "Bond Reserve" and "Depreciation
and Emergency" have reached-the minimum limit set by ordinance.
The review of the condition and operation of the combined water and sewer-
age system indicates that the system is opertated in a satisfactory manner
and that the conditon, in general, is good.
The following is a summary of recommendations and suggestions in regard to
the operation of the combined water and sewerage system:
I
It is recommended that, insofar as practicable, all of the
studies and improvements listed under "Operations and Main-
tenance" be undertaken during the comming two-year period.
I
I
I
I
I
'I
I
I
I
I
I
19
I
I
I
I
I
APPENDIX "A"
12 May 1978
I
I
I
I
Salina City Commission
City-County Building
300 W. Ash
Salina Kansas 67401
Dear Mayor and Commissioners:
I
We are submitting this letter report as a sumn~ry of our analyses of the
operating condition of thc '"ater and se",,,r utility of the City of
Salina, Kansas. The information contained herein was developed through
the cooperation of the City's water and sewer utility staff, from the
excellent records maintained by that staff, from annual financial audits
of the utility and from our firm's familiarity with the utility operations
gained through 30 years' experience as Consultants to the City.
I
I
I
Table 1 and Table 2 indicatE a 10-year history of population, nU;llber of
accounts, water consumption and sewage flows. As can be seen the total
water consumption trends generally increase with population increase
although the per capita consUl"ption shows a declining trend. The water
consumption trend is expected to continue to decline moderately as costs
of water increase, conservation practices become more desirable and as
regulatory standards become more strict. Se,.,age volumes have indicated
a down,,'ard trend in recent years and this trend is expected to continue
due to regulatory requirements to minimize extraneous and excessive
se\\~age fIolY's.
I
I
I
I
Table 3 and Table 4 present 10-year histories of revenues and expenses
in the water and sewer utility. The revenm, frr>P.l thE, sdI1itation department
is derived from billing servic.es '.hleh are performed as part of the
regular watcr and sewage billing.
I
I
I
1
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
TABLE 1
WATER CONSUMPTION
10-Year History, 1968 to 1977
Water Water
Number of Pumped Metered Gal/Capita
Year Population Accounts Million Gal. Million Gal. /day
1968 38,110 12,532 1,958.39 1,552.0 112
1969 39,013 12,795 2,039.i9 1,640.6 115
1970 37,714 12,945 2,223.62 1,748.0 127
1971 37,925 13,155 2,152.72 1,706.5 124
1972 36,609 13,336 2,046.35 1,644.4 123
1973 37,i62 13,581 2,124.78 1,678.0 124
1974 37,377 13,016 2,193.64 1,640.0 120
1975 38,378 14, 154 2,246.00 1,673.5 120
1976 39,682 14,588 2,413.27 1,740.3 120
*1977 40,532 14,942 2,113.79 1,721.1 116*
*Rate increase into effect 1 February 1977 .
2
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
TABLE 2
SEWAGE VOLill!ES
8-Year History, 1970 to 1977
Metered
Number of Volume
Year Population Accoun ts (1) Million Gal. (2)
1970 37,714 12,700 2,022.8
1971 37,925 12,900 2,262.6
1972 36,609 13,200 1,643.2
1973 37,162 13,300 2.069.9
1974 37,377 13,600 1,717.0
1975 38,378 13,900 1,849.1
1976 39,682 14,400 1,811. 9
1977 40,532 14,700 1,963.7
(1) Estimate, separate tabulation not maintained.
(2) Metered at wastewater treatment plant.
3
Gal/Capita
/day
147
143
123
153
126
132
125
133
I
I
I
I
I
I
I
I I
I
I
, I
! I
I
I
I
I
I
i I
l I
TABLE 3
WATER AND SEWERAGE DEPARTMENT
OPERATING REVENUE
1D-Year History, 1968 to 1977
Water Sewer Sanitation
Year Dept. Dept. Dept. Total
1968 597,731 349,462 2,943 950,136
1969 652,337 351,640 3,019 1,006,996
1970 670,807 357,771 3,062 1,031,645
1971 677,031 372,517 3,142 1,052,690
1972 647,120 384,634 3,183 1,034,939
1973(1) 973,908 390,624 3,276 1,367,809
1974 1,030,869 366,818 5,369 1,403,056
1975 1,074,725 399,485 5,734 1,479,944
1976 1,137,557 417,573 5,820 1,560,950
1977 (2) 1,476,782(3)(4) 591,959(4) 5,980 2,074,721(4)
1977(ad-
justed) (2) 1,501,000 600,400 5,980 2,107,380
(1) New rate schedule for water sales effective 1 January 1973
(2) New rate schedule for water and sewer sales, effective
1 February 1977. (Adjusted) For rate if in effect for 12 months.
(3) Includes charges for fire hydrant rental ($81,135).
(4) New rate in effect for 11 months of the year
4
I.
.
I
.
II
I
I
.
I
I
I
I
.
I
I
I
I
I
I
I
TABLE 4
TOTAL OPERATING EXPENDITURES
WATER AND SEWERAGE DEPARTMENT
10-Year History, 1968 to 1977
Water Se>1er
Year Dep t. Dept. Total
1968 451,587 193,938 645,525
1969 499,402 210,605 710,007
1970 551,382 228, 108 779,490
.1971 529,371 242,634 772,005
1972 518,101 240, 128 758,229
1973 572,888 283,265 856,153
1974 705,157 314,787 1,019,944
1975 786,280 376,062 1,162,342
1976 866,584 423,904 1,290,488
1977 908,759 437,745 1,346,504
5
I
I
I
I
Projected water and sewer utility expenditures and revenue requirements
have been developed based on existing trends, anticipated future changes
in operating procedure, proposed debt service requirements and minor
capital improvements which will be required to keep the water and sewage
utility responsive to its customers. Minor capital improvements,
although not specifically identified in the historical expenditures have
fluctuated in the past but have been financed from the operating revenues.
Projected annual minor capital improvements are expected to remain
relatively constant due to a recently established policy of the City
requiring extension of the water and sewer utilities into new areas to
be paid for by the developer of that area. This policy relieves the
Utili~y of initial financing of these improvements. Projected minor
capital improvements are expected to vary from $50,000 to $200,000
annually and average approximately $125,000.00.
I
I
II
I
I
I
I
I
II
Table 5 and Table 6 indicate projected population, number of accounts,
operating revenues and expenditures for the water and sewer utility
through 1997 and presents a summary of our study analyses.
I
I
I
I
I
I
6
I
QJ lJl
a c:: 0 0 0 0 0 0 0 0 0 0 0 0
I 0 0 0 0 0 0 0 0 0 0 0 0 0 0
u a OM '" '"' eo r- N N N o. '" '"' 0 0
c:: 0 .., . . .
.... .... I1l '"' o. r- '"' eo -< '"' '" eo '" -<t co
f<< .... '"' -< "" o. '"' 0 '"' co '" -< "" '"
.., QJ '" '" '" "" '" '" '" -<t "" -<t '" -<
QJ
I z 0 <n-
I ~~ 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0
.... QJ '" 0 '" N '" '" 0 0 '" r- '" M
.., lJl .
I1l <= '" '"' N '" "" N co "" -< o. co o.
.... QJ -< '" N 0 co co '"' '"' '" '"' '" '"'
I QJ o. 0 .... N N '" "" '" '"' r- '" -<
""l< .
O~ -< -< -< -< -< -< -< -< -< N '"
<n-
I 0 0 0 0 0 0 0 0 0 0 0 0
co 0 0 0 0 0 0 0 0 0 0 0 0
c:: QJ 0 '"' -< r- r- '" N o. '" M M '"
.... :l . .
.., c:: o. '" 0 o. N M "" r- 0 M N r-
I1l OJ "" r- r- o. '" co '" "" '" co -< N
I .... :> '" '" '"' '"' co co 0 0 -< -< r- M
OJ OJ . . . .
Ul ('"-'.~ ..... -< -< -< -< -< N N N N N '"
~ <.:;
p: <n-
o
I ...
....
~
~ I1l
..,
I ~ ....
OJ ""
~ COI1l co o. '"' '"' '" '" '" N 0 0 '" r-
I1l u I1l -< -< -< -< -< -< -< .... .... -< 0 o.
lJl__'"O -< -< -< -< -< -< -< -< -< -< -<
~ 0,.;__
I I ~ I1l
'" ... 0 ~
Ul Z
~ :>< ~
...:l Ul f;; lJl
~ c::
p: p: c:: 0
I ~ 0";
... ~ '"0"';";
~ Z OJ.., I1l 0 -< 0 N N '" '" 0 '" '" -<t N
.... .... ""~ r- -< o. -< N -<t '" "" '" '" r- o.
... QJ a r- co r- co co co co co "'" co co co
~ .., :l c:: . .
QJ lJl 0 -< -< .... -< -< -< -< .... -< -< -< -<
I :>::<::.,.;
~ 0";
U,.;
.,.;
~ :>::
I ...
u
~
...., lJl
g "" .., 0 0 0 0 0 0 0 0 0 0 '"' 0
0 c:: N -<t r- '" r- r- o. eo "" '" -<t 0
P< " N "" '"' co 0 '" r- o. N -<t co co
I 0 . . . . . . . . . .
0 u '" '" '" '" '"' '"' '"' '"' r- r- co 0
Z u -< -< -< -< -< -< -< -< -< -< -< N
<
I <::
0
.... 0 0 0 0 0 0 0 0 0 0 0 0
.., 0 0 0 0 0 0 0 0 0 0 0 0
I1l 0 r- '" co "" o. '" 0 r- N 0 0
I ,.; . . . . . .
:l -< -< N N M '" "" '" '" '"' o. N
"" -<t -<t -<t -<t -<t "" -<t -<t "" "" '"
0
Po.
I ~I
eo o. 0 -< N '" -<t '" '"' r- N r-
r- r- eo co co co eo co co co o. o.
o. o. o. o. o. o. o. o. 0' o. o. o.
I -< -< -< -< -< -< -< -< -< -< -< -<
7
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Based on our analyses and projections of the City's Water and Sewer
Utilities, a minimum annual net operating income of approxim~tely
$700,000 must be maintained through 1986 to provide appropriate debt
service coverage and funds for annual minor capital improvements. To
provide such funds an adjustment in the Water and Sewer Rate Schedules
will be required periodically to increase total revenues to compensate
for increased costs.
Based upon our analyses and projections, proposed rate adjustments
required to produce the projected revenues would occur at two-year
intervals beginning in 1980 and extending through 1986. The adjustments
must be capable of covering increases in operating costs as well as
provide bond coverage.
Table 7 summarizes the projected water and ~ewage operations with
suggested rate adjustments which increase operating revenues by 6
percent in 1980, 9 percent in 1982, 8 percent in 1984, and 5 percent in
1986. Operating expenses have been projected to increase 6 percent
annually during this time interval.
9
I
I
Beyond 1986 when the proposed refunding debt service decreases, net
operating incomes of approximately $500,000 annually should be main-
tained. Timely rate adjustments will be needed to produce the required
operating revenues to provide for all operating expenses, debt service,
projected minor capital improvements and bond coverage.
I
I
I
The City should continue its practice of reviewing water and sewage
revenues and exp~nditures annually so that the appropriate rate adjust-
ments can be initiated.
I
WILSON & COMPANY
I
I
Jerry L. May, P.E.
II
I
-cw
I
I
I
I
I
I
I
I
11
I
l_