city of salem - psc.state.wv.us
TRANSCRIPT
City Of Salem P.O. Box 352
Salem, WV 26426 Phone: (304) 782-13 18
Fax: (304) 782-4229 Email: SalemCityClerk 1 @frontier.com
April 26, 201 1
Sandra Squire, Director Executive Secretary Division Public Service Commission of West Virginia P.O. Box 812 Charleston, WV 25323
Dear Ms. Squire:
Please notice I have enclosed an enactment of an ordinance increasing water and wastewater rate in regards to City of Salem, which was adopted on April 4,201 1. In accordance with the Public Service Commission of West Virginia's Rules for the Construction and Filling of Tu@, I submit to you the following in regard to the ordinance:
1. An Ordinance to Amend Water Rates for the City of Salem and Chapter Seventeen and An ordinance to Amend Waste Water Rates and Charges, authorizing an increase in rates for water and waste water customers of the City of Salem. This ordinance contains the new rates and charges to be put into effect by the City as set forth therein;
2. An affidavit of pubiications in compliance with West Virginia Code 48- 1 1-4 from the Exponent Telegram.
3. A copy of the publications of the class I1 legal advertisements for the water and wastewater of the Public Notice of Change in Rates by Municipalities (Tariff Form No. 12). The said publication appeared in the paper on April gth and I 5'h, 201 1.
April 26,201 1 Sandra Squire, Director Executive Secretary Division Public Service Commission of West Virginia Page 2
I will further provide to you an Affidavit of Posting certifying that Tariff Form No. 12, with a copy of the Ordinance, has been posted in a conspicuous places at the City of Salem’s business office for a period of thirty (30) days following the final adoption, beginning on April 4, 201 1.
Thank you for your attention to these matters, and if you have any questions, or require additional information, please do not hesitate to call.
Sincerely,
p7J Jason T. Ferrell Salem City Clerk
PUBLISHER'S CERTIFICATE
I, Sara V. Shingleton , Classified Manager of THE EXPONENT TELEGRAM, a newspaper of general circulation published in the City of Clarksburg, County and state aforesaid, do hereby certify that the annexed:
CHANGE IN RATES-WATER
was published in THE EXPONENT-TELEGRAM 2 time( s) commencing on
the 8th day of April 201 1 and ending on the 15th day of April 2011 at the request of City of Salem.
Given under my hand this 19th day of April 201 1
The publisher's fee for said publication is: $148.33 for 652 words at $0.2275 per word.
n n SEAL
Classified Manager of The aponent-Telegram - Subscribed to and sworn to before me this 19th day of April 201 1.
hPDko.L/ o@l fha J Notary Public & and for Hahlon County, WV
My commission expires on: The &/ day of & d L L 20 Icl
OFFICIAL SEAL NOTARY PUBLIC
State of West Virginia SHELLEY F. RIFFLE
Clarksbur Publisting Co. PO Box 2008.524 Hewes Ave. Clarksburg, WV 26302-2000 - lily -.. .. CQrnmisslon - - Expires I--.-- July ---.-A_- 21,2019
c
ORDINANCE
Tariff Form No. 12 (Tariff Rule 44)
PUBLIC NOTICE OF CHANGE IN RATES BY MUNICIPALITIES
NOTICE is hereby given that the City of Salem, a public utility, has adopted by ordinance on Auril 4, - 201 1 a tariff containing increased rates, tolls and charges for furnishing Water service to 790 customers at the City of Salem in the County of Harrison. West Virginia.
The proposed increased rates and charges will become effective May 19,201 1 unless otherwise ordered by the Public Service Commission and will produce approximately $5.600 annually in additional revenue, an increase of 1.35%. The average monthly bill for the various classes of customers will be changed as follows:
Residential $ 1.60 5.69 % Commercial $4.10 2.82 % Institutional $ 16.28 7.09 %
I$, INCREASE INCREASE (%)
The increases shown are based on averages of all customers in the indicated class. Individual customers may receive increases that are greater or less than average. Furthermore, the requested rates and charges are only a proposal and are subject to change (increases or decreases) by the Public Service Commission in its review of this filing. The Commission shall review and approve or modify the increased rates only upon the filing of a petition within thirty (30) days of the adoption of the ordinance changing said rates or charges, by:
(1) Any customer aggrieved by the changed rates or charges who presents to the Commission a petition signed by not less than twenty-five percent of the customers served by such municipality operated public utility; or
(2) Any customer who is served by a municipality operated public utility and who resides outside the corporate limits and who is affected by the change in said rates or charges and who presents to the Commission a petition alleging discrimination between customers within and without the municipal boundaries. Said petition shall be accompanied by evidence of discrimination; or
(3) Any customer or group of customers who are affected by said change in rates who reside within the municipal boundaries and who present a petition to the Commission alleging discrimination between said customer or group of customers and other customers of the municipal utility. Said petition shall be accompanied by evidence of discrimination.
All petitions should be addressed to the Executive Secretary, Public Service Commission of West Virginia, 201 Brooks Street, P.O. Box 812, Charleston, West Virginia 25323.
A complete copy of the proposed rates, as well as a representative of the utility to provide any information requested concerning it, is available to all customers, prospective customers, or their agents at any of the following offices of the utility: City of Salem, 229 West Main Street, Salem, West Virginia 26426.
A copy of the proposed rates is available for public inspection at the office of the Executive Secretary of the Public Service Commission at 201 Brooks Street, P.O. Box 812, Charleston, West Virginia 25323.
PUBLISHER'S CERTIFICATE
I, Sara V. Shingleton , Classified Manager of THE EXPONENT TELEGRAM, a newspaper of general circulation published in the City of Clarksburg, County and state aforesaid, do hereby certify that the annexed:
I
ORDINANCE WATER RATES/CHAP 17
was published in THE EXPONENT-TELEGRAM 2 tirne(s) commencing on
the 23rd day of March 201 1 and ending 011 the 29th day of March 201 1 at the request of City of Salem.
Given under my hand this 29th day of March 2011
The publisher's fee for said publication is: $262.76 for 1,155 words at '$0.2275 per word.
SEAL' Classified Manager of The Expdnent-Telegram I
Subscribed to and sworn to before me this 29th day of March 201 1.
I h O l O f L J .A Q t.2 L '. LJ' ( 1 .. Notafj, Public i n b d for Harrisbff County, Wv
My commission expires on: T h e 2 , d a y o f (5 20 -
AN ORDINANCE TO AMEND WATER RATES FOR THE CITY OF SALEM AND CHAPTER SEVENTEEN
WHEREAS, The City of Salem operates a water system for commercial and residential
purposes for residents and non-residents of the City of Salem, and
WHEREAS, the rates applicable to consumers to h n d the water system for the City of
Salem appear inadequate based upon recent financial audits, and
WHEREAS, it would be in the best interest of the City of Salem, its residents and users
of said system to increase water rates in order to adequately fund the maintenance and
improvements to said system, and
WHEREAS, the City of Salem intends to amend Chapter Seventeen to provide for
certain fees related to water services,
BE IT THEREFORE ORDAINED, that the rates for the city water service shall hereby
be deemed as follows:
RATES: Minimum Use Minimum Bill Average Bill
Residential 2,000 gallons $21.21 $29.73
Commercial 2,000 gallons $21.21 $149.43
Institutional 2,000 gallons $21.21 $245.86
In addition to the Minimum Use fee, water will be charged at the rate of $7.44 per
thousand gallons for all uses above the minimum of 2,000 gallons.
BE IT THEREFORE FURTHER ORDAINED, that the price for additional services
shall be as follows:
RESIDENTIAL WATER TAP FEE:
A water tap fee made for a residential customer shall be Two Hundred Dollars ($200.00),
plus any additional cost for a line larger than three-fourths inch. The City of Salem shall be
responsible for the repair and replacement of any water line Erom its main supply line to the
customer’s meter and all other repair and maintenance shall be the obligation of the landowner.
RECONNECT NON PAYMENT FEE:
A fee of Twenty-Five Dollars ($25.00) will be charged to the customer when the City
must reconnect water service that has been discontinued due to failure to make a payment.
RETURNED CHECK FEE:
A fee of Twenty-Five Dollars ($25.00) will be charged to the customer when a check has
been returned to the City for insufficient funds.
CUSTOMER SERVICE FEE:
A fee of Twenty-Five ($25.00) will be charged to the customer when the City must turn
the water off and then turn the water on at the meter of street curb to enable the customer to
perform repairs on the customer’s water lines.
COMMERCIAL WATER TAP:
A fee for commercial taps shall be the responsibility of the property owner, a fee will be
calculated at the cost of installation including all lines, fittings, meters, labor, etc., as shall be
needed.
DELAYED PAYMENT PENALTY:
The above rate fee schedule is net on the first day of the billing month. On all accounts
not paid in full within Twenty (20) days of the billing date, a Ten Percent (1 0%) penalty will be
added to the net amount shown. This delayed payment penalty is not interest and is only to be
collected once for each month’s billing where it is appropriate.
CUSTOMER SECURITY DEPOSIT:
The utility shall require the applicant or customer to make as a guarantee of the payment
for water service a deposit. Such deposit shall not be more than one-twelfth (1 /12) of the annual
estimated service to secure the utility fi-om loss. The utility shall not be bound to supply service
until the deposit has been paid to the utility. After the customer has paid for service for twelve
(1 2) consecutive months, the utility shall refund the deposit.
The remaining provisions of Chapter Seventeen not affected by this Ordinance shall
remain in effect.
This Ordinance shall become effective on May 19,201 1,
PASSED by the Council of the City of Salem, West Virginia, on FIRST READING,
this 23rd day of February, 201 1.
PASSED by Council of the City of Salem, West Virginia, on SECOND READING, this - y day of April, 201 1.
11 APPENDICIES
P Outline of Procedure to Change Municipal Water Rates and J Checklist for Water Utilities - PSC Guidelines
P Information Needed to Prepare a Financial Forecast List
P City of Salem Water Tariff January 2,2005
P Salem, West Virginia Profile of General Demographic Characteristics: 2000
Municipal Rate Changes
By -, the Commission issued final Rules for the Construction and Filing of Tariffs, 150 CSR 2, and the forms attached thereto (Tariff Rules). These Rules incorporate what had previously been designated: Electric Cooperative, Natural Gas Cooperative, Telephone Cooperative and Municipal Utility Rate making and Appeal Procedures, as Tariff Rule 22.1. Specifically, Tariff Rule 22.6 provides:
Commission Staff has developed time guidelines to assist municipally operated water or sewer utilities in adopting rate changes in compliance with the West Virginia Code. These guidelines may be obtained by calling the Commission at 1-800-344-51 13 or by accessing the Commission’s website.
The Commission Staff time guidelines referenced in the above Tariff Rule are found at the links below. Please note that the process for Water Utilities is different from the process for Sewer Utilities and Combined Water and Sewer Utilities.
(1) IMPORTANT ~
(2) REVISED-
(3) R E V I S E D W q Combined Svsterna
The documents have multiple parts. First is a cover sheet that contains a flow chart stating each necessary step. Second is a more detailed document that discusses the procedures. Third are sample forms.
To~ofPaae I Home I PrivacvStatement
OUTLINE OF PROCEDURE TO CHANGE MUNICIPAL WATER RATES AND d CHECK LIST FOR WATER UTILITIES
(Revised 1/10]
Step I 0 Prepare financial justification exhibit
v Step 2
[II First reading of municipal ordinance v
At least 5 days before final vote on adoption Step 3
W Publish pre-adoption legal ad and make copies of of proposed ordinance available for inspection
(Publication must be at least 5 days before final reading)
v Step 4
0 Final reading of ordinance, followed by public comment and vote.
(Ordinance may not become effective in less than 45 days)
v Within 1 day of adoption
Step 5 Post notice of ordinance adoption
(Must follow Tariff Form No. 12 format and be placed in a conspicuous place
at utility business offices.) v
Step 6 Within 5 days of adoption
0 Provide public notice by billing insert, special mailing, or legal ad with press release
(This notice must follow Tariff Form No. 12 format.) v
Within 5 days of adoption 0 Submit information to PSC, including: new rates and charges,
copy of ordinance, financial justification for increase, affidavit of publication for pre-adoption newspaper ad, number of customers.
v Step 8
On 3Ist day following adoption n Send to PSC (1) affidavit of post-adoption newspaper publication and
press release, or affidavit stating that notice was provided by either mailing insert or affidavit stating that notice was provided by special mailing; and (2) an affidavit stating that public notice by posting was provided for thirty
days following adoption of the ordinance.
step 7
IMPORTANT NOTE: These materials are compiled as a guide. The Commisdon's limited jurisdiction with regard to municipal rates Is set forth In )n/. Va. Code 524-24b. The munlclpal ordinance process used to change utlllty rates may also be challenged In circuit court. Thus, if a municipality has questions about the legality of Its ordinance process, the municipality should consult with its attorney.
Help QUlPI PRoCeDuRe FOR tNC lNeE MUNICIPAL, WAmR s
(if changing both water and sewer rates in one ordinance, follow the requirements to change sewer rates)
PRE-ADOPTION STEPS
= STEP 0; Financial justification for increase
Prepare a written financial justification for rate increase. The financial justification must include a pro forma income and expense statement. A sample has been attached for your reference. See West Viyinia Code Q 24-2-4b(b) and Public Service Commission Rules for the Construction and Filing of Tariffs (Tarif Rules) 150-2-22.1 .f.3.
The City (Town) Council introduces the ordinance at a scheduled meeting and has the first reading (and the second reading if you have a three reading process). The ordinance must provide that it will not take effect sooner than forty five days after final passage or adoption. See W. Va. Code § 8-1 1-4, 24-2-4b and Commission TariffRule 150- 2-22.1 .e.
* STEP e: Pre-adoption notice
Schedule your council meeting and hearing on the final passage gf the ordinance.
Publish the ordinance as a Class 1-0 legal advertisement (published once in two qualified newspapers of opposite politics if two are published within the area, but one newspaper is sufficient if two are not available) with the publication being at five days before the hearing. A sample copy of the newspaper ad is attached for your reference. Be sure to request an affidavit of publication from the newspaper. At a minimum, the pre-adoption notice must include the following: (1) subject matter of the ordinance; (2) date, time and place of vote on final adoption of the proposed ordinance; (3) place(s) where the proposed ordinance may be inspected; and (4) an invitation to customers to appear and speak on the subject matter.
Have a copy of the ordinance avallable for public Inspection by posting it at the place designated in the advertisement. This should be a conspicuous place at the utility’s business premises. See W, Va. Code Q 8-1 1-4(a)(2),
EW STEP 0: Passage of the ordinance
Hold City (Town) Council meeting and have second reading of proposed ordinance (or third reading if your City (Town) requires a three reading process) Ask for public questions or comments regarding the proposed ordinance, Vote on the proposed ordinance. See W Va, Code 3 8-1 1-4.
PQSTmADOPTlON STEPS
= STEP @ Post-adopfion public notice by posfing
Complete Commission Tariff Form No. 12 and post it with the ordinance for inspection. The posting must be made in a conspicuous place at the utility's business offices. Public notice by posting must begin on the day followlng enactment of the ordinance and continue for a thirty day period. A copy of Tariff Form No.12 is attached for you reference. See W. Va. Code Q 24-2-4b(b), and Commission TariffRule 150-2-22.1 .~.4.
= STEP Q): Other required post-adoption public notice
Within five days of adoption, notice must also be provided to your customers by providing a copy of Tariff Form No.12 to the customers in one of three ways:(l) by enclosing a copy of Tariff Form No.12 with each customer's bill for service if the billing date falls within the five day period; (2) by mailing a copy of Tariff Form No.12 to each customer by First Class Mail; or (3) by publishing Tariff Form No.12 as a Class II legal advertisement and by issuing a press release to the newspaper, requesting that the newspaper, as a public service, include a news article on the rate increase, A sample letter to the newspaper is attached for your reference. See W. Va. Code Q 24-2-4b and Tariff Rule 150-2-22.1 .c. 1-3.
= STEP 8: FMng wifh the Public Service Commlssion
Within five days of adoption of the ordinance, the following must be sent to the Executive Secretary of the Public Setvice Commission:
(1 ) (2) (3)
A copy of the new rates and charges. A copy of the ordinance. The financial justification for the increase, including the pro forma
income and expense statement. {Refer back to Step 1 .) An affidavit of publication indicating that preadoption noace of the ordinance was given. (Refer back to Step 3.) The correct number of customers determined by the last billing cycle before the adoption of the ordinance. If you provided post-adoption public notice by sending a copy of Tariff Form No. 12 to your customers with their monthly billing statements, or by sending a copy of Tariff Form No. 12 to each of your customers through a special mailing, you will need to send an affidavit to the Commission stating this.
If you provided post-adoption public notice by a Class l i legal publication of Tariff Form No. 12, then you should send a copy of the affidavit of publication which will be provided to you by the newspaper. This may not be provided immediately by your newspaper. If not, send the first five items within the five day period, and send the newspaper affidavit immediately upon receiving it. See W, Va, Code 5 24-2-4b and Commission Tariff Rule 150-2-22.1 .f.
The mailing address ofthe Commission’s Executive Secretary is: Sandra Squire, Executive Secretary Public Service Commission of West Virginia Post Office Box 812 Charleston, West Virginia 25323
STEP Q: Affidavit of pasting
After public notice has been provided by posting a copy of Tariff Form No.12 with a copy of the ordinance in a conspicuous place at the utility’s business offices for a period of thirty days following final adoption (See Step 5), send an affidavit of posting to the Office of the Commission’s Executive Secretary, attesting to the fact that the posting was made on the day after the ordinance was finally adopted and continued for a period of thirty days. A sample posting affidavit is attached for your reference. Tariff Rule 150-2-22.1 s.4.
H:\CSHORT\WPDOCS\RESEARCH\Munioipal Checklist & Forrns\WATER MUNICIPAL CHECKLIST 8 FORMS\MUNICIPALORDADPTIONWATERle\rlseilOl261O.~d
Oescriotion Operating Revenues
CITY (TOWN) OF - SEWER (AND/OR WATER) Pro forma Statement of Income and Expenses
For the Fiscal Year Ending June 30,2003
Per Baoks Goinnlevel Per Books Adiustments Adiusted Adiustment Goina-Level 1 I 0.41 3 (932) 109,481 17,891 127.372
Operating revenue deductions Operation & maintenance expenses 138,829 (1 1,252) 127,377 (1,098) 126,279 Depreciation Taxes 6.236 6.236 (686) 5.550
Tolai operation expenses 138.629 /5.016) 133.613 I1.7841 131.a29
Net operaling income (loss) (28'21 6) 4,084 (24,132) 19,675 (4.457)
0 ther Income 1,794 1,794 1,794
Other income deductions 1.698 Net Income l26 422) 4.084 /22,338) 19,675 14.361 1
Pro forma 138,640
226,328
5.550 131.878
6,762
1,794
1.698
6.858
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PRE-ADOPTION NEWSPAPER NOTICE FOR WAYER RATE CHANGES
NOTICE
CITY (TOWN) OF
Notice is hereby given that the City (Town) of a municipal corporation, will hold a
hearing before the final vote on a proposed ordinance, the principal object of which is the increase of water rates for customers of the water system operated by the City (Town) of . The tile of such ordinance is "An Ordinance to Increase Water Rates". The final vote on adoption of said proposed ordinance shall be held in the Council Chambers of the City (Town) of
, City (Town) Hail, Street Address,
seven o'clock (7:OO) p.m, Interested parties may appear and be heard at such time with respect to the passage of the proposed ordinance. Copies of the proposed ordinance are available at the Office of the Clerk, City (Town) Hall, in City (Town).
City (Town), West Virginia on (date) 1 at
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Tariff Form No. 12 (Tariff Rule 44)
PUBLIC NOTICE OF CHANGE IN RATES BY MUNICIPALJTES
NOTICE is hereby given that ~ (name of utility) public utility, has adoptcd by
(date) il tariff containing incrensed rates, tolls and charges for furnishing (number of customers)
ordinance on - custorncrs at (name localities) 5 T Z T E o L r
(type i f utility service) service to -- ~ . _-
-- The popused kicreusctlrtitw and chuges will become effective (date) unless otherwise ordered
wually iuadditioual I W ~ U U G , titi hCredSt: by thc Public Servicc Commissionand will produce approxi~ixitely $ of-.. - %. The nveragc monthly bill for thc various classes of cu&omcrs will be changed as follows:
($) JNCREASE INCREASE (%)
Rcsidential
Conrmerciil
Illdustlid
Resale Other
Kcsalc customers of _I,_1 (name of' utility) includc . - .- (list all resale customers by name).
The increases shown are bascd on averages of all customers in the indicatcd class. Individual customers may ieceivc hcreusas dial u e ewsller or less than avcrage. Furthermore, the requested rates and charges are only a proposal and arc subject to chaage (increases or decreases) by the Public Service Conuuissiou h its review ultlris f i g . The Coiruilissiuu shall review and npprovc or modify thc incrcascd rates only upon the filing of a petition within thirty (30) days of the adoption of the ordinance changing said rates or charges, by:
(1) Any customr aggrieved by the clungcd rates or charges who presents to the Commission a petition signed by not less than lwenty-five percent of the customers served hy such mimicipally aparaled pnhlic ntility; nr
(2) Any customcr who is served by a municipally operatedpublic utility and who resides outside the corporate limits and who is affected by the chahge in said rates 01 clmges aud who preseuls Lo dit: Commission a petition allegirig discrimination between customers within and without the municipal boundaries. Said petition shall be accompanied by evidence of discrimination; or
(3) Any customer or group of customrs who are affected by said change in rates who nside within the municipal hnmdnries and who present a petition to the Commission oilcging discrimination between said customer or group of customers and other customers of the municipal utility. Said pctit'inn shall he accompanied by wvidencc of discrimination.
All pctitions should be addressed to the Executive Secretary. Public Setvice Commission of West Virginh. 201 Brooks Street, P. 0. Box 812, Clarlestou, West Vitgiuia 25323.
A complete copy ofthe proposed rates, os well ps Q represenbtivc of the utility to provide any information rcquestcd concerning it, is available to ail customers, prospective customers, or their agents at any ofthe following offices of the utility.
(List with each publication only those offices applicable,)
A copy of the proposed rates is available for public inspection at the office of the Executive Secretary of the Public Service C'otiudsshi at 201 Brooks Skeet, P. 0. Box 812, Charleston, West Virginia 25323.
SAMPLE LETTER TO NEWSPAFER
CITY (TOWN) OF Street address
City (Town), West Virginia (Zip Code)
(Date)
Legal Advertising Department Name of Newspaper Street Address of Newspaper City (Town), West Virginia (Zip Code)
Dear Madam/Sir:
Print the enclosed Tariff Form No. 12 as a Class li legal advertisement, with the first publication to be made within five days of (date of adoption). I have enclosed two copies. Please send one copy to your newsroom as a press release. Since this is a matter of vital public interest to many of your readers, I encourage you to print a news article containing the information reflected in the Tariff Form. As soon as the second publication has been made, please provide me with an affidavit of publication and a tear sheet containing the newspaper article,
Thank you for your cooperation in this matter.
Yours very truly,
Mayor
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C fie c k I i $ t 8 F u r m s\ W A T EA M U N I C I PA L C H E C K L I S T 8
AFFIDAVIT OF PUBLIC NOTlCE BY POSTING
State of West Virginia County of , to wit:
I * - - = - , being first duly sworn upon my oath, do depose and say that I am the for the Citynown of
, and that I have been duly authorized by the Cityflown Council to execute this affidavit of public notice by posting.
The attached public notice, substantially in the format of Tariff Form No. 12 of the Public Service Commission of West Virginia's Rules for the Construction and Filhg of Tariffs, 150 C.S.R. 2, and as required by 150 C.S.R. 2.22.1 c.4., was first pasted in a conspicuous place on the premises where the Cityflown conducts its utility business with the public on
(This date must be the first day after passage of the municipal ordinance.) and remained posted until (This date must be at least thirty days after the passage of the municipal ordinance.).
Signed:
Taken, subscribed and sworn to before me in said county this - day of
My commission expires
I
20-.
Notary Public
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Information Needed to Prepare a Financial Forecast
1.
2.
3.
4.
5 .
6.
7.
8.
9.
Three to five years of balance sheets (at least current assets, current liabilities, and long term liabilities).
List of outstanding loans with amount owed and debt service requirements (amortization schedule) for each loan.
Current balances in any required bond accounts, if not on the balance sheet.
Income and expense statements for the last three to five years.
Current rate schedule and date rate was effective, as well as rate schedule(s) in effect for the last three to five years, including bulk, wholesale, or special rates and tap/connection charges.
Number of customers served (preferable by user class) at the end of each of the last three to five years.
Number of customers added in the last three to five years, excluding extensions.
Number of customers added due to extensions or other increases in the service area.
Names and amount of sales (dollars and gallons) to larger than residential sized customers, who purchased 300,000 gallons or more in a year.
10. List of major capital improvements/purchases and their costs for the last three to five years.
1 1. Capital improvement plan for next 10-20 years. Strongly suggest completing asset management plan prior to completing rate analysis.
12. Special increases or decreases in operating costs as a result of any capital projects.
13. Number of customers expected to be added as the result of a capital project, including the names and sales to all customers larger than residential sized customers.
14. Current price of water or sewage treatment services purchased and date the price was effective as well as any scheduled future price increases. Are any major changes expected in the cost of services?
15. Total quantity of water purchased or produced or sewage treated andor transported for contract treatment for the last three to five years.
2fl85 RRR 2 1 414 11 1 05 P.S.C. W. Va. No. 13
j
CITY OF SALEM, a municipal utility
OF
WATER at Salem and vicinity, Harrison County, West Virginia
Filed with THE PUBLIC SERVICE COMMISSION of
WEST VIRGINIA
Issued March 2,2005 Effective for service rendered on or &er January 1,2005
Adopted by City Council
Issued by CITY OF SALEM, a municipal utility
BY-&
Mayor Title
CITY OF SALEM (Water) P.S.C. W.VA. TariffNo. 13 OriginalSheetNo. 2
RULES AND REGUL,ATIONS
I. Rules and Redations for the Government of Water Utilities, adopted by the Public Service Commission of West Virginia, and now in effect, and all men&ents thereto and modifications thereof hereafter made by said Commission.
CITY OF SALEM (Water) P.S.C. W.VA. TariffNo. 13 OrigrnalSheetNo. 3
APPLICABILITY Applicable in entire territory served
AVAILABILITY OF SERVICE Available for general domestic, commercial and industrial service
(0 RATE First 2,000 gallons used per month $17.89 (Minimum) Next 3,000 gallons used per month Next 10,000 gallons used per month Next 25,000 gallons used per month All Over 40,000 gallons used per month
$ 8.94 per 1,000 gallons $ 7.3 1 per 1,000 gallons $ 6.50 per 1,000 gallons $ 4.24 per 1,000 gallons
(I) MINIMUMCHARGE No bill will be rendered for less than $17.89 per month.
(C) RESIDENTIAL WATER TAP A water tap fee made for a residential customer will be charged Two Hundred Dollars ($200.00), plus any additional cost for a larger than three-fourths inch connection. The City of Salem shall be responsible for the repair and replacement of any water line fkom its main supply line to the customer's meter and all other repair and maintenance shall be the obligation of the landowner.
(J) RECONNECT NON PAYMENT FEE A fee of Twenty-Five Dollars ($25.00) will be charged to the customer when the City must reconnect water service that has been discontinued due to failure to make a P a P a t
(I) REWlWEDCHECKF'EE A fee of Twenty dollars ($20.00) will be charged to the customer when a check has been returned to the City for insufficient funds.
(C) CUSTOMER SERVICE FEE A fee of Twenty-Five ($25.00) will be charged to the customef when the City must turn the water off and then turn the water on at the meter of street curb to enable the customer to perform repairs on the customer's water lines.
(I) Indicates increase (C) Indicates change in text
r : \ T A R I F F ~ W A R l s A L e ~ - ( ~ ~ . ~
CITY OF SALEM (Water) P.S.C. W.VA. TariffNo. 13 Ori@SheetNo. 4
(C) COMMERCIAL WATER TAP A fee for commercial taps shall be the responsibility of the property owner, a fee will be calculated at the cost of installation including all lines, fittings, meters, labor, etc., as shall be needed.
(M,C) DELAYED PAYMENT PENALTY The above rate fee schedule is net on the first day of the billing month. On all accounts not paid in full witbin Twenty (20) days of the billing date, a Ten Percent (10%) penalty will be added to the net amount shown. This delayed payment penalty is not interest and is only to be collected once for each months biUing where it is appropriate.
(N) CUSTOMER SECUTIRY DEPOSIT: The utility shall require the applicant or customer to make as a guarantee of the payment for water service a deposit. Such deposit shall not be more than 0ne-twelft.h (1/12) of the annual estimated service to secure the utility fiom loss. The utility shall not be bound to supply service until the deposit has been paid to the utility. After the customer has paid for service for twelve (12) consecutive months, the utility shall refund the deposit.
(C) Indicates change in text (M) (N> Indicatesnew
Indicates a provision has been moved
~\TARlrr~WA~ALENyn3W_(CURRBm.DOC
Table DP.1 . Profile of General Demographic Characteristics: 2000 Geographic area: Salem city. West Virginia [For information on confidentiality protection. nonsampling error. and definitions. see text]
Subject
Total population .......................... SEX AND AGE Male ........................................ Female ...................................... Under 5 years ............................... 5 to 9 years ......................... 10 to 14 years ............................... 15 to 19 years ............................... 20 to 24 years ............................... 25 to 34 years ............................... 35 to 44 years ............................... 45 to 54 years ............................... 55 to 59 years ............................... 60 to 64 years ............................... 65 to 74 years ............................... 75 to 84 years ............................... 85 years and over ............................ Median age (years) ........................... 18 years and over ............................
Male ...................................... Female ....................................
21 years and over ............................ 62 years and over ............................ 65 years and over ...........................
Male ..................................... Female ...................................
RACE One race ...................................
White .................................... Black or African American .................. American Indian and Alaska Native . . . . . . . . . . Asian ....................................
Asian Indian ............................ Chinese ................................ Filipino . . . . . . . . . . . . . . . . . . . . . . . . . Japanese . . . . . . . . . . . . . . . . . . . . . . . Korean ................................. Vietnamese ............................. Other Asian ’ ...........................
Native Hawaiian and Other Pacific Islander . . . Native Hawaiian ......................... Guamanian or Chamorro . . . . . . . . . . . . Samoan ................................ Other Pacific Islander ..................
Some other race .......................... Two or more races .......................... Race alone or in combination with one
White ...................................... Black or African American ........... American Indian and Alaska Native ............ Asian ...................................... Native Hawaiian and Other Pacific Islander . . . . . Some other race ............................
or more other races:
Number
2. 006
1. 000 1. 006
95 98
101 198 38 1 217 205 21 8 82 67
145 124 75
30.6
i . 638 839 799
1. 417 385 344 108 238
1. 97s 1. 752
47 4
15s 4
12
13E
1 E 1
1 1: 27
1. 77f 61 1;
161
I C r(
. Jercent
100.0
49.9 50.1 4.7 4.9 5.0 9.9
19.0 10.8 10.2 10.9 4.1 3.3 7.2 6.2 3.7
(XI 81.7 41.8 39.8 70.6 19.2 17.1 5.4
11.8
98.7 87.4 2.3 0.2 7.9 0.2 0.6
6.8
0.3
0.7 1.3
88.8
0.6 8.0 0.1 0.9
3.a
-
Subject
HISPANIC OR LATINO AND RACE Total population ..........................
Hispanic or Latino (of any race) . . . . . . . . . . . . . . . . Mexican ................................... Puerto Rican ............................... Cuban .................................... Other Hispanic or Latino ....................
Not Hispanic or Latino ........................ ..... White alone ....................
RELATIONSHIP Total population ..........................
In households . . . . . . . . . . . . . . . . . . . . . Householder ............................... Spouse ................................... Child ......................................
Own child under 18 years . . . . . . . . . . . . . . . . Other relatives .............................
Under 18 years ......................... Nonrelatives . . . . . . . . . . . . . . . . . . . . . . . . . .
Unmarried partner ....................... In group quarters .............................
institutionalized population ................... Noninstitutionalized population . . . . . . . . . . . . . . .
HOUSEHOLD BY TYPE Total households .........................
Family households (families) . . . . . . . . . . . . . . . . . . . With own children under 18 years .
Married-couple family . . . . . . . . . . . . . . With own children under 18 years . . . . . . . . .
Female householder. no husband present .... With own children under 18 years .........
Nonfamily households ....................... Householder living alone . . . . . . . . . . . . . . . . . . .
Householder 65 years and over . . . . . . . . . . . Households with individuals under 18 years . I . . Households with individuals 65 years and over . Average household size ...................... Average family size ..........................
Total housing units ....................... Occupied housing units ...................... Vacant housing units .........................
occasional use ...........................
Rental vacancy rate (percent) . . . . . . . . . . . . . . . . . HOUSING TENURE
HOUSING OCCUPANCY
For seasonal. recreational. or
Homeowner vacancy rate (percent) . . . . . . . . . . . .
Occupied housing units ................. Owner-occupied housing units ................ Renter-occupied housing units ................ Average household size of owner-occupied units Average household size of renter-occupied units
Number
2. 006 20 7 3
10 1. 986 1. 746
2. 006 1. 645
744 280 446 329 68 28
107 40
361 102 259
744 413 197 280 127 104 56
331 273 118
220 207
2.21 2.92
858 744 114
5
5.7 6.7
744 397 347
2.42 1.97
. aercent .
100.0 1.0 0.3 0.1
0.5 99.0 87.0
100.0 82.0 37.1 14.0 22.2 16.4 3.4 1.4 5.3 2.0
18.0 5.1
12.9
100.0 55.5 26.5 37.6 17.1 14.0 7.5
44.5 36.7 15.9
29.6 27.8
(XI (X)
100.0 86.7 13.3
0.6
(XI (XI
100.0 53.4 46.6
(XI (XI -
. Represents zero or rounds to zero . ’ Other Asian alone. or two or more Asian categories . (X) Not applicable .
Other Pacific Islander alone. or two or more Native Hawaiian and Other Pacific Islander categories . In combination with one or more of the other races listed . The six numbers may add to more than the total population and the six percentages
may add to more than 100 percent because individuals may report more than one race . Source: U S . Census Bureau. Census 2000 .
1
U S . Census Bureau
Table DP.2 . Profile of Selected Social Characteristics: 2000 Geographic area: Salem city. West Virginia [Data based on a sample . For information on confidentiality protection. sampling error. nonsampling error. and definitions. see text1
Number
740 25 19
158 103 435
I, 129
Subject Percent Subject
NATIVITY AND PLACE OF BIRTH Total population ..........................
100.0 Native ....................................... 3.4 Born in United States ....................... 2.6 State of residence ........................
21.4 Different state ............................ 13.9 Born outside United States . . . . . . . . . . . . . . . . . . 58.8 Foreign born .................................
Entered 1990 to March 2000 .............. Naturalized citizen ..........................
100.0 Not a citizen ...............................
SCHOOL ENROLLMENT Population 3 years and over enrolled in school ....................
Nursery school. preschool ..................... Kindergarten ................................. Elementary school (grades 1-8) . . . . . . . . . . . . . . . . High school (grades 9-12) ..................... College or graduate school .................... EDUCATIONAL AlTAlNMENT
Population 25 years and over .......... Less than 9th grade .......................... 9th to 12th grade. no diploma . . . . . . . . . . . . . . . . . . High school graduate (includes equivalency) . . . . . Some college. no degree ...................... Associate degree., .......................... Bachelor's degree ..................
Percent high school graduate or highe Percent bachelor's degree or higher . . MARITAL STATUS
Population 15 years and over .......... Never married ............................... Now married. except separated ............... Separated ............................... Widowed ...............................
Female . . . . . . . . . . . . . . . . . . . . . . Divorced ....................................
Female ....................................
Grandparent living In household with
Graduate or professional degree . . . . .
GRANDPARENTS AS CAREGIVERS
one or more own grandchildren under 18 years .............................
Grandparent responsible for grandchildren ..... VETERAN STATUS
Civilian population 18 years and over . I Civilian veterans ............................ ,
DISABILITY STATUS OF THE CIVILIAN NONINSTITUTIONALIZED POPULATION
Population 5 to 20 years ............... With a disability. ............................
Population 21 to 64 years .............. With a disability .............................
Percent employed ......................... No disability .................................
Percent employed ......................... Population 65 years and over ..........
With a disability ............................. RESIDENCE IN 1995
Population 5 years and over ........... Same house in 1995 ......................... ,
Different house in the U S . in 1995 . . . . . . . . . . . . Same county .............................. Different county ............................
Same state .............................. Different state ............................
Elsewhere in 1995 ............................
10.0 20.5 35.4 13.0 2.7
10.2 8.1
(X)
100.0 38.5 40.0 2.0
10.5 8.6 9.0 5.4
REGION OF BIRTH OF FOREIGN BORN Total (excluding born at sea) ..............
Europe ...................................... Asia ........................................ Africa ....................................... Oceania ..................................... Latin America ................................ Northern America ............................. LANGUAGE SPOKEN AT HOME
Population 5 years and over .............. English only ................................. Language other than English . . . . . . . . . . . . . . . . . .
Speak English less than "very well" . . . . . . . . Spanish ...................................
Speak English less than "very well" . . . . . . . . Other Indo-European languages . . . . . . . . . . . . .
Speak English less than "very well" ........ Asian and Pacific Island languages . . . . . . . . . . .
Speak English less than "very well" . . . . . . . .
113 23 1 400 147 31
115 92
69.5 18.3
1. 711 659 684 35
179 147 154 92
14
1, 613 175
518 43
1% 023 267 37*8 756 58.1 259 121
1, 899 841 889 474 415 164 251 169
ANCESTRY (single or multiple) Total populatlon .......................... Total ancestries reported . . . . . . . . . . . . . . . . . . .
Czech' ...................................... Danish ......................................
French (except Basque)' ...................... French Canadian' ............................ German ..................................... Greek .......................................
8.3 Hungarian ................................... Irish'. .......................................
100-0 Italian ....................................... 26.1 Lithuanian ...................................
Nonvegian ................................... 73.9 Polish .......................................
(X) Portuguese .................................. 100.0 Russian ..................................... 46.7 Scotch-Irish ..................................
Scottish ..................................... Slovak ......................................
100.0 Subsaharan African ........................... 44.3 Swedish ..................................... 46.8 Swiss ....................................... 25.0 Ukrainian .................................... 21.9 United States or American ..................... 8.6 Welsh ..............................
13.2 West Indian (excluding Hispanic groups 8.9 Other ancestries .............................
87.5 Arab ........................................
100.0 Dutch ....................................... 10.8 English ......................................
Number
2. 003 1. 804 1. 794 1. 343
451 10
199 176 12
187
199 5
175
5 14
I. 899 1. 646
253 144 46 11 33
9 174 124
2. 003 1. 570
4 2
52 138 27 3
262 9 7
175 77
3 26
10 73 41 3
7 4
10 300 31 7
299
. Percent
100.0 90.1 89.6 67.0 22.5 0.5 9.9 8.8 0.6 9.3
100.0 2.5
87.9
2.5 7.0
100.0 86.7 13.3 7.6 2.4 0.6 1.7 0.5 9.2 6.5
100.0 78.4 0.2 0.1
2.6 6.9 1.3 0.1
13.1 0.4 0.3 8.7 3.8
0.1 1.3
0.5 3.6 2.0 0.1
0.3 0.2 0.5
15.0 1.5 0.3
14.9 - -Represents zero or rounds to zero . (X) Not applicable . 'The data represent a combination of two ancestries shown separately in Summary File 3 . Czech includes Czechoslovakian . French includes Alsa- tian . French Canadian includes AcadiarVCajun . Irish includes Celtic .
Source: U.S. Bureau of the Census. Census 2000 . 2
U S . Census Bureau
Table DP.3 . Profile of Selected Economic Characteristics: 2000 Geographic area: Salem city. West Virginia [Data based on a sample . For information on confidentiality protection. sampling error. nonsampling error. and definitions. see text1
Number below
poverty level
106 78 44
46 37 20
560 404 38
152 87
224
Subject
Percent below
poverty level
26.7 37.0 63.8
50.5 60.7 83.3
34.0 32.4 14.7 40.6 31.9 49.8
EMPLOYMENT STATUS Population 16 years and over ...........
In labor force ............................... Civilian labor force .........................
Employed ..... .................... Unemployed ...........
Percent of civilian labo Armed Forces .............................
Not in labor force ............................ Females 16 years and over .............
In labor force ............................... Civilian labor force .........................
Employed .............................. Own children under 6 years .............
All parents in family in labor force . . . . . . . . . . . . . COMMUTING TO WORK
Workers 16 years and over ............. Car. truck. or van - - drove alone . . . . . . . . . . . . . . Car. truck. or van - - carpooled ................ Public transportation (including taxicab) . . . . . . . . Walked ..................................... Other means ................................ Worked at home ............................ Mean travel time to work (minutes)’ . ..........
16 years and over .................... Employed civilian population
OCCUPATION Management. professional. and related occupations .......................
Service occupations ......................... Sales and office occupations . . . . . . . . . . . . . . . . . Farming. fishing. and forestry occupations ...... Construction. extraction. and maintenance occupations ...............................
Production. transportation. and material moving occupations ...............................
INDUSTRY Agriculture. forestry. fishing and hunting. and mining ................................
Construction ................................ Manufacturing ............................... Wholesale trade ............................. Retail trade ................................. Transportation and warehousing. and utilities ... Information ................................. Finance. insurance. real estate. and rental and leasing ....................................
Professional. scientific. management. adminis- trative. and waste management services ......
Educational. health and social services . . . . . . . . Arts. entertainment. recreation. accommodation
and food services .......................... Other services (except public administration) ... Public administration. . . . . . . . . . . . . CLASS OF WORKER Private wage and salary workers . . . . . . . . . . . . . . Government workers ......................... Self-employed workers in own not incorporated business ..................................
Unpaid family workers .......................
Number
1. 670 782 782 63 1 151
19.3
888 799 321 321 300 127 75
61 5 364 163
2 68 7
11 17.4
631
205 175 109
4
67
71
7 48 54 2
75 22 16
12
24 226
71 33 41
467 123
37 4
-ReDresents zero or rounds to zero . 00 Not aoDlicable .
Percent . 100.0 46.8 46.8 37.8 9.0 (XI
53.2 100.0 40.2 40.2 37.5
100.0 59.1
100.0 59.2 26.5
0.3 11.1 1.1 1.8 (XI
100.0
32.5 27.7 17.3 0.6
10.6
11.3
1 .I 7.6 8.6 0.3
11.9 3.5 2.5
1.9
3.8 35.8
11.3 5.2 6.5
74.0 19.5
5.9 0.6
Subject
INCOME IN I999 Households ............................
Less than $1 0.000 .................... $10. 000 to $14.999 .......................... $1 5. 000 to $24.999. ......................... $25. 000 to $34.999 .......................... $35. 000 to $49.999 .......................... $50. 000 to $74.999 . . . . . . . . . . $75. 000 to $99.999 .......................... $100. 000 to $149.999 . . . . . . . . . $150. 000 to $199.999 ........................ $200. 000 or more ........................... Median household income (dollars) . . . . . . . . . . . . With earnings ...............................
Mean earnings (dollars)’ . . . . . . . . . . . . . . . . . . . With Social Security income . . . . . . . . . . . . . . . . . .
Mean Social Security income (dollars)’ . . . . . . With Supplemental Security Income . . . . . . . . . . .
Mean Supplemental Security Income (dollars)’ ................................
With public assistance income . . . . . . . . . . . . . . . . Mean public assistance income (dollars)’ . . . .
With retirement income ...................... Mean retirement income (dollars)’ . . . . . . . . . . .
Farnllies ................................ Less than $10.000 ........................... $10. 000 to $14.999 .......................... $1 5. 000 to $24.999 .......................... $25. 000 to $34.999 . . . . . . . . . . . . . . . . . . $35. 000 to $49.999 .......................... $50. 000 to $74.999 .......................... $75. 000 to $99.999 .......................... $100. 000 to $149.999 ........................ $150. 000 to $199.999 ........................ $200. 000 or more ........................... Median family income (dollars) . . . . . . . . . . . . . . . . Per capita income (dollars)’ . . . . . . . . . . . . . . . . . . Median earnings (dollars): Male full-time. year-round workers . . . . . . . . . . . . . Female full-time. year-round workers . . . . . . . . . .
. .
Subject
POVERTY STATUS IN 1999 Famllles ................................
With related children under 18 years . . . . . . . . . . . . With related children under 5 years . . . . . . . . . . .
Families with female householder. no husband present .......................
With related children under 18 years . . . . . . . . . . . . With related children under 5 years . . . . . . . . . . .
Individuals .............................. 18 years and over ............................
65 years and over .......................... Related children under 18 years . . . . . . . . . . . . . . .
Related children 5 to 17 years . . . . . . . . . . . . . . . Unrelated individuals 15 years and over . . . . . . . . .
Number Percent -t 745 232 114 112 101 87 50 28 11 5 5
16. 577
442 28. 567
252 10. 4 8
71
6. 425 40
2. 317 162
21. 334
397 66 48 61 76 65 44 21 11 3 2
27. 687
11. 188
27. 031 16. 667
100.0 31.1 15.3 15.0 13.6 11.7 6.7 3.8 1.5 0.7 0.7 (X)
59.3 (XI
33.8 (XI 9.5
(XI 5.4 (X)
21.7 (XI
100.0 16.6 12.1 15.4 19.1 16.4 11.1 5.3 2.8 0.8 0.5 (XI
(XI
(4 (XI
’If the denominator of a mean value 0; per capha value is less than 30. then that value is calculated using a rounded aggregate in the numerator . See text .
Source: U S . Bureau of the Census. Census 2000 . 3
U S . Census Bureau
Table DP.4 . Profile of Selected Housing Characteristics: ZOO0 Geographic area: Salem city. West Virginia [Data based on a sample . For information on confidentiality protection. sampling error. nonsampling error. and definitions. see text1
Subject
Total housing units., .................. UNITS IN STRUCTURE 1.unit. detached .............................. I-unit. attached .............................. 2 units ...................................... 3 or 4 units .................................. 5 to 9 units .................................. 10 to 19 units ................................ 20 or more units ............................. Mobile home ................................. Boat. RV. van. etc ............................ YEAR STRUCTURE BUILT 1999 to March 2000 .......................... 1995 to 1998 ................................ 1990 to 1994 ................................ 1980 to 1989 ................................ 1970 to 1979 ................................ 1960 to 1969 . . . . . . . . . . . 1940 to 1959 ................................ 1939 or earlier ............................... ROOMS 1 room ...................................... 2 rooms ..................................... 3 rooms ..................................... 4 moms ..................................... 5 rooms ..................................... 6 rooms ..................................... 7 rooms., . . . . . . . . ...................... 8 rooms., ................................... 9 or more rooms ............................. Median (rooms) ..............................
Occupied housing units ............... YEAR HOUSEHOLDER MOVED INTO UNIT 1999 to March 2000 .......................... 1995 to I998 ................................ 1990 to 1994 ................................ 1980 to 1989 ................................ 1970 to 1979 ................................ 1969 or earlier ............................... VEHICLES AVAILABLE None ....................................... 1 ........................................... 2 ........................................... 3 or more ................................... HOUSE HEATING FUEL Utility gas ................................... Bottled. tank. or LP gas ....................... Electricity .................................... Fuel oil. kerosene. etc ........................ Coal or coke ................................. Wood ....................................... Solar energy ................................. Other fuel ................................... No fuel used., ............................... SELECTED CHARACTERISTICS Lacking complete plumbing facilities . . . . . . . . . . . . Lacking complete kitchen facilities .............. No telephone service .........................
Number
a61
577 15 45 33 36 60 52 43
3 21 7
71 110 83
146 420
2 33
120 126 162 155 92
106 65 5.4
739
159 194 97
103 100 86
143 325 199 72
567 10
134 4
22
2
14 14 57
. Percenl
1oo.a
67.0 1.7 5.2 3.8 4.2 7.0 6.0 5.0
0.3 2.4 0.8 8.2
12.8 9.6
17.0 48.8
0.2 3.8
13.9 14.6 18.8 18.0 10.7 12.3 7.5 (XI
100.0
21.5 26.3 13.1 13.9 13.5 11.6
19.4 44.0 26.9 9.7
76.7 1.4
18.1 0.5
3.0
0.3
1.9 1.9 7.7 -
Subject
XCUPANTS PER ROOM Occupied housing units ...............
. 00 or less ..................................
. 01 to 1.50 ................................. 5 1 or more . . . . . . . . . . . . . . . ...
Specified owneroccupied units ........ IALUE . ess than $50,000 ............................ 50. 000 to $99.999 ........................... ;loo. 000 to $149.999 ......................... ;I 50. 000 to $1 99.999 ......................... i300. 000 to $499.999 . . 500. 000 to $999. 999 ;1.000. 000 or more . . . . . . . . Aedian (dollars) .............................. AORTGAGE STATUS AND SELECTED MONTHLY OWNER COSTS Vith a mortgage . . . . . . . . .
Less than $300 .......................... $300 to $499 ............................ $500 to $699 ............................ $700 to $999 ............................ $1. 000 to $1.499 ......................... $1. 500 to $1.999 . . . . . . . . $2. 000 or more . . . Median (dollars) ..........................
Sot mortgaged ............................... Median (dollars) ..........................
;ELECTED MONTHLY OWNER COSTS AS A PERCENTAGE OF HOUSEHOLD INCOME IN 1999 ess than 15.0 percent ........................ 5.0 to 19.9 percent .......................... 0.0 to 24.9 percent .................... 5.0 to 29.9 percent ............ 0.0 to 34.9 percent .......................... 5.0 percent or more ......................... lot computed ................................
Specified renteroccupied units ........ ;ROSS RENT ess than $200 .............................. 200 to $299 ................................ 300 to $499 ................................ 500 to $749 ................................ 750 to $999 ................................ I. 000 to $1.499 . . . . . . . . . . . . . . . 1. 500 or more . . . . . . . . . ... lo cash rent .... ...... . . . ledian (dollars) . .................... ;ROSS RENT AS A PERCENTAGE OF HOUSEHOLD INCOME IN I999 ess than 15.0 percent ........................ 5.0 to 19.9 percent .......................... 0.0 to 24.9 percent .......................... 5.0 to 29.9 percent .......................... 0.0 to 34.9 percent . . . . . . . . . 5.0 percent or more ......................... lot computed . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . .
. . .
. . . . . . . . .
Number
739 735
4
347
212 114 15 6
43. 500
165 12 48 60 34 11
580 182 266
153 61 36 25 27 45
337
75 77
101 42 1 2
39 296
37 30 31 23 18 97
101
Percent
100.0 99.5
0.5
100.0
61.1 32.9 4.3 1.7
(X)
47.6 3.5
13.8 17.3 9.8 3.2
(X)
(X) 52.4
44.1 17.6 10.4 7.2 7.8
13.0
100.0
22.3 22.8 30.0 12.5 0.3 0.6
11.6 (XI
11.0 8.9 9.2 6.8 5.3
28.8 30.0 -
-Represents zero or rounds to zero . (X) Not applicable . Source: U S . Bureau of the Census. Census 2000 .
4
U S . Census Bureau
WEST VIRGINIA II
ASSISTING WEST VIRGINIA RURAL COMMUNITIES
A Program of the West Virginia Community Action Partnership B o n l ~ ~ ~ A u i r t m c a ~
CITY OF SALEM
WATER RATE ANALYSIS REPORT
WVRCAP 12C SUNSET VIEW
BRIDGEPORT, WEST VIRGINIA 26330 TELEPHONE 304a42-9287 TELEFAX 304-842-S727
WVCAP 2 HALE SIREI3 SUITE 100 CHARLESTON, WEST VIRGINIA 2530 1
TELEPHONE 304-347-2277 TELEFAX 304347-200 1
FEBRUARY 8,2011
State Coordinator Lewis D. Pauley 12C Sunset View Bridgeport, West Virginia 26330 Telephone 304-842-9287 Telefax 304-842-5727
Jeff Owens 12C Sunset View Bridgeport, West Virginia 25330 Telephone 304-842-9287 Telefax 304-842-5727
Nettie Harper 12C Sunset View Bridgeport, West Virginia 26330 Telephone 304-842-9287 Telefax 304-842-5727
Rural Development Advisor
Technical Assistance Provider
Cliff Pannell 307 Federal Street Bluefield, West Virginia 24701 Telephone 304-323-3751 Telefax 304-324-3796
Rick Proctor 1205 Broad Street Surnmersville, West Virginia 26651 Telephone 304-872-1 162 Telefax 304-872-5796
Richard Watson PO Box 33 Dry Fork, West Virginia 26263 Telephone 304-866-4260
WVCAP Executive Director
Mary Chipps 2 Hale Street Suite 100 Charleston, West Virginia 25301 Telephone 304-347-2277 Telefax 304-347-2001
COLLABORATION WITH WSOS/OHIQ RCAP
John Rauch 3308 S R 555 Little Hocking, Ohio 45742 Telephone 740-989-0596 Telefax 740-989-0148
Field Agent Coordinator
WEST VIRGINIA RURAL COMMUNITY ASSISTANCE PROGRAM 12C SUNSET VIEW BRIDGEPORT, WEST VIRGINIA 26330
304-842-9287 FAX 304-842-5727
February 8,201 1
City of Salem 229 West Main Street Salem, WV 26426
Dear Mayor Plaugher and Members of Salem City Council:
The Rural Community Assistance Program (RCAP) is a nationwide nonprofit organization with a mission to assist rural people and improve the quality of life in their communities. WV RCAP provides service to all of West Virginia and is committed to the RCAP mission. WV RCAP is pleased to provide the enclosed Water Rate Analysis Report at no cost to the City of Salem.
This Water Rate Analysis Report will provide the Council Members with several options to evaluate and determine the best course of action for their city. Based on the suggestions of Mr. Mark Jackson, City Manager, WV RCAP has projected three scenarios that will provide enough revenue to, at least, cover Operation & Maintenance expenses, debt service requirements, and the purchase and transport of water. Other scenarios provide enough revenue to cover the aforementioned expenses and possible employee raises and capital improvement. WV RCAP used all relevant and available information in projecting the proposed rates, and took great care in doing all possible to reasonably assume their accuracy.
WV RCAP is also aware of the alleged embezzlement and possible skewing of financial records. Because of this, the gathering of crucial information was both dificult and time consuming. WV RCAP would like to thank the City of Salem for all of their willing help and support. In particular, WV RCAP would like to thank Mark Jackson, City Manager; Jason Ferrell, City Clerk; Julia Childers, Billing Clerk; and Ronnie Davis, Utilities Director. This Water Rate Analysis would not have been possible without their commitment and willingness to assist.
WV RCAP would like to thank the City of Salem for having the confidence in our organization to request our assistance, and hope that the enclosed Water Rate Analysis will be of benefit to a1 in the City of Salem. A
State Coordh6or
ALProgram of the West Virginia Community Action Partnership
AMENDED REPORT
The enclosed Water Rate Analysis Report has been amended as of April 4,2011.
On April 4,2011 the Salem City Council adopted Scenario 1 as their new rate schedule. Therefore, this report has been amended to include a Proforma for Scenario 1, the adopted ordinance, legal advertisement and Tariff Form No. 12.
D
II THE TABLE OF CONTENTS
CITY OF SALEM WATER RATE ANALYSIS
Amended April 4,201 1 to include “PROFORMA - SCENARIO 1” and “ORDINANCE”*
SECTION 1 STATEMENT OF REPORTING AND QUALIFYING CONDITIONS
STATEMENT OF ASSUMPTIONS 2
EXECUTIVE SUMMARY 3
SCENARIOS 4
COMPARISONS 5
*PROFORMA - SCENARIO 1 Adopted by Salem City Council - April 4,201 1
*ORDINANCE Tariff Form No. 12 Legal Notice Ordinance
APPENDICIES 1. Outline of Procedure to Change Municipal Sewer Rates and
2. Information Needed to Prepare a Financial Forecast List 3. City of Salem Water Tariff 4. Salem, West Virginia Profile of General Demographic
Characteristics: 2000
J Checklist for Water Utilities - PSC Guidelines
6
7
STATEMENT OF REPORTING AND 11 QUALIFYING CONDITIONS
At the request of the City of Salem, and in keeping with West Virginia Rural Community Assistance Program’s Mission Policy of “assisting people in rural America to improve the quality of life in their communities,” WV RCAP has prepared the enclosed water rate analysis.
The City of Salem is anticipating purchasing water fiom the City of Clarksburg via transport through Sun Valley PSD. Once the connection is established, Salem will stop producing water. In addition, the City of Salem’s last water rate increase occurred in 2004. In 2004, the City of Salem had 830 total water customers, including 110 Commercial customers. In 2010, the City had only 804 total water customers and only 84 Commercial customers. The purpose of this water rate analysis is to assist the City to achieve adequate rates to cover operating expenses and new debt service requirements.
The information and data used within this document were supplied by employees and management of the City in the form of yearly billing reports, monthly payroll reports, monthly utility expenses reports, debt service requirements, Public Service Commission (PSC) annual reports, and interviews with employees and management.
WV RCAP has projected rates for three scenarios: 0 Scenario 1:
o Normal operating expenses o Purchasing of water from Clarksburg o Transport of water by Sun Valley PSD o New debt service requirements
0 Scenario2: o Normal operating expenses o Purchasing of water from Clarksburg o Transport of water by Sun Valley PSD o New debt service requirements o 5% raise for employees paid by the Water Department
0 Scenario3: Normal operating expenses Purchasing water from Clarksburg Transport of water by Sun Valley PSD New debt service requirements 5% raise for employees paid from Water Department Money for the purchase of equipment
The responses reported in the document were based on available information supplied by the City of Salem and should not be considered a comprehensive audit of the financial condition of the Water Department of the City of Salem. W RCAP did not conduct an audit of the financial records and relied upon the given information to compile this analysis. Therefore, WV RCAP in no way implies to the validity or accuracy of the supplied information.
11 STATEMENT OF ASSUMPTIONS
General
WV RCAP has undertaken the task of conducting a Rate Analysis Study for the City of Salem’s Water Department. In doing so, WV RCAP learned of several circumstances that may inhibit the accuracy of the analysis. WV RCAP encountered alleged embezzlement which possibly skewed the book keeping, misclassified accounts, no functioning Master Meter, poorly maintained records, and a general lack of information. Due to this, WV RCAP had to make several assumptions. These assumptions were sometimes simple, and others were very complex. All of the assumptions were investigated with strict skepticism, and necessary information gathered, to help ensure the accuracy of all. The following is a list of the assumptions and general details of each.
Financial
WV RCAP has to assume that the financial data obtained from Salem over the last three years has to be, at least, flawed. Due to the alleged embezzlement, it may be reasonable to assume that the financial data is completely false. WV RCAP found several possible categorization errors when abstracting the financial data. For example, there are large amounts listed in “Miscellaneous and Other,” but no expenses in “Repair” and “Maintenance.” It is assumed that repair and maintenance are included in this “Miscellaneous” expense account.
Loan to the Wastewater DeDartment
WV RCAP is aware that the Water Department loaned the Wastewater Department $1 17,275. However, WV RCAP cannot find it listed as an individual expense. The assumption is that the amount was placed in the “Miscellaneous” expense line item which totals $176,267. That “Miscellaneous” expense seems dramatically high, however, because of the financial situation with the City of Salem, WV RCAP cannot guarantee that the Wastewater loan was, in fact, placed in this line item. WV RCAP and the City Manager did, however, assume that the Wastewater loan is listed in this expense account. Because WV RCAP had the support of the City Manager, the $1 17,275 was backed out of the large “Miscellaneous” expense account. By doing so, the expenses of the City seem much more in line with other comparable cities. Had WV RCAP left that $117,275 expense in the “Miscellaneous” account, the City of Salem’s rates would have needed an extra $1 17,275 in revenue to cover the expense. By taking it out, Salem could fall $1 17,275 short of needed revenue. The decision was made to remove the expense when seeing how expenses from past years compared to the current year.
Unaccounted for Water
The City of Salem, in anticipation of the impending connection to the Sun Valley PSD, has not fixed their current Master Meter. Therefore, it was difficult to determine the percentage of unaccounted for water. WV RCAP used the water passing through the City’s Water Treatment Plant filters and compared them to the metered water sold to arrive at a percentage of water lost. During the observed timeframe of 10 days, an average of 290,000 gallons of water was produced. After subtracting 29,000 to account for a backwash average, 241,000 gallons were available to sell per day. On average, 145,000 gallons are sold per day-leaving 96,000 gallons unaccounted for. Through this calculation, WV RCAP determined that 36% of the water produced was unaccounted for. WV RCAP is also aware of the leaks in the City’s day tank. The 36% calculation was made during a time span when the day tank’s leak had been fixed.
Misread Meters
While abstracting data from the FY 2010 billing report, WV RCAP discovered an extremely high consumption for a City of Salem account for one month. The total was 16,952,700 gallons for the month. After investigation into this account, it was determined that the account’s meter reading had been incorrectly logged into the system. Several other City accounts had the same questionable readings. Therefore, the City of Salem’s total water consumption is listed as 69,924,373 gallons. However, because of the incorrect meter readings, the actual total consumption for Salem is 48,279,917 gallons.
Misclassified Accounts
WV RCAP discovered 19 commercial and government accounts listed as residential. Each account was listed for the entire year. When the accounts were properly classified, the consumption totals for each classification were more in line with similar sized cities.
Human Resources
While trying to ascertain HR costs, WV RCAP staff noticed that certain information might be lacking, or more so assumed, hidden in incorrect expense accounts. Due to this, WV RCAP created an HR spreadsheet to project costs over the year. The HR spreadsheet was created using payroll reports from August and September 201 0 and interviews with City of Salem staff,
Source Materials Validation
W RCAP used previous year expense statements to project hture year expenses. As a check, WV RCAP also used reports from July 2010 - December 2010. It is assumed that these most recent reports are accurate for the 6 month time frame with the expenses being listed in the proper account. Because using such a short time frame would not result in the most reliable projections, W RCAP used the previous year reports in combination with the most recent 6 month time span reports. In doing so, WV RCAP can reasonably assume that the projections used are reliable. If any expense was questionable, it could be compared to current reports to help ensure correct projections.
1) EXECUTIVE SUMMARY I I
The City of Salem requested the assistance of WV RCAP in conducting a water rate study analysis. As the information was presented by Salem, it was clear that the FY 2010 fiscal reports had some flaws. There were several “Miscellaneous” expenses that were very large and other accounts had no entries. It was assumed that a least of portion of these large “Miscellaneous” expenses were covering the accounts with no entries. Due to these types of problems, when projecting the FY 20 1 1 budget, WV RCAP used expense reports from FY 20 10 and compared them to the current FY 201 1 being utilized by the current administrative staff. Through the comparison of previous years and the current year, WV RCAP was able to project reasonable expenses. Through this process, the large “Miscellaneous” expense was reduced, and appropriate entries were made into a previously empty “Maintenance & Repair” account.
WV RCAP projected three scenarios to achieve adequate revenue to cover all expenses. In:
Scenario 1 rates are adjusted by 8%. With this adjustment, revenue is adequate to cover O&M, debt service, and the purchase and transport of water. This scenario raises the minimum bill to $21.21 (includes the first 2,000 gallons) and proposes a flat rate of $7.44 per thousand gallons of water over 2,000 gallons.
Scenario 2 adjusts rates by 9% and covers O&M, debt service, purchase and transport of water, and allows for a 5% raise to employees from the Water Department. The minimum bill is raised to $23.56 (includes the first 2,000 gallons) and a flat rate of $6.78 per thousand gallons of water over 2,000 gallons.
Scenario 3 adjusts rates by 12% and cover O&M, debt service, purchase and transport of water, a 5% raise for employees from the Water Department, and $10,000 per year for Capital Improvements. The minimum bill will be raised to $24.60 (includes the first 2,000 gallons) and a flat rate of $6.76 per thousand gallons of water over 2,000 gallons.
Each scenario is projecting a flat rate per thousand gallons of water used over the initial 2,000 gallons included in the minimum bill. The flat rate per thousand gallons was projected at the request of the City Manager. By using a flat rate, no user class is supplementing another’s water usage, and each customer is paying the same rate regardless of usage.
The City of Salem’s current average water rates are about 1.85% of the Median Household Income. The proposed rates will raise that average percentage in Scenario 1 to 2%; Scenario 2 to 2.13%; and Scenario 3 to 2.07%.
11 SCENARIOS
SCENARIO I
Scenario 1 covers the basic O&M, new debt service requirements, and purchasing and transporting water. Human Resources is typically the largest expense in water operations. The following HR sheet was created by WV RCAP by utilizing payroll summaries.
100% $IHr Est BenefitslHr* HourslYr MisclEst OT per yr* Total$ From Water Water Operator $ 15.00 $ 9.04 2080 $ 2,100 $ 52,103 $ 52,103
33% Utilities Director Water Clerk Utilities Worker Utilities Worker Utilities Worker Utilities Worker Utilities Worker Utilities Worker
$ 13.50 $ 11.98 2080 $ $ 12,40 $ 8,69 2080 $ $ 8.25 $ 11,32 2080 $ $ 9.35 $ 8.33 2080 $ $ 13.00 $ 11.39 2080 $ $ 9.00 $ 8,29 2080 $ $ 9,OO $ 8.29 2080 $ $ 9,OO $ 8,02 2080
1,395 $ 54,393 $ 17,950 2,055 $ 45,922 $ 15,154
108 $ 40,814 $ 13,469 146 $ 36,920 $ 12,184 26 $ 50,757 $ 16,750
176 $ 36,139 $ 11,926 456 $ 36,419 $ 12,018
$ 35,402 $ 11,683
25% City Manager $ 19,23 $ 6.60 2080 $ 53,726 $ 13,432 City Clerk $ 11.00 $ 10,86 2080 $ 1,180 $ 46,649 $ 11,662
Total $ 188,330 * Est Benefits include: Retirement Contribution = 12,5% of Gross Wages Workers Compo = $4,2O/worker/hr Insurance : Basic life - $.03/person/hr AND varied employer match on healthcare premium/hr
** Estimated OTderived from avg OT in August & September 2010
The City of Salem is taking their Water Treatment Plant offline when it begins to purchase water from Clarksburg. By doing so, the City is cutting a portion of expenses. However, the new purchase and transportation fees incurred will offset some of the savings. As illustrated below, a total of $41 9,272 is required for this scenario.
FY 2011 Water Expense Summary
HR*** Maintainence & Repair Chemicals Lab &Testing Utility Outside Service Misc & Other Revenue Reserve (2.5%)
Total
15% of Annual Debt Service Debt Service Reserve Requirement Debt Service
O&M Expenses + Debt Service
Depreciation
Total
Total Fixed 188,330 $ 131,831 41,295 $ 20,648 13,500 2,600 25,414 10,702 $ 5,351 17,697 $ 10,618 10,500 310,038 $ 168,448
Variable $ 56,499 $ 20,648 $ 13,500 $ 2,600 $ 25,414 $ 5,351 $ 7,079 $ 10,500 $ 141,590
$ 4,950 $ 4,950 $ 3,000 $ 3,000 $ $ 30,000 $ 30,000 $
$ 347,988 $ 206,398 $ 141,590
$
$ 347,988 $ 206,398 $ 141,590
***Includes al l HR $ totaled on HR Exp 2011 Tab
Bulk Water Purchases FY 2011 $ 44,898 Transportation $ 7,346 Estimated Water Loss** 36% $ 19,040
Total $ 71,284
Total Revenue Needed: $ 419,272
The total revenue needed for Scenario 1 is $419,272. projected revenue based on current rates. consumption.
Below is an illustration of The average rates are based on total
CURRENT RATES
At the current rate, the City of Salem will not be able to meet it’s impending obligations. Below, is the projected rate for Scenario 1 . For this scenario, rates will be adjusted by 8%. The new minimum will be $21.21 with a flat rate of $7.44 per thousand gallons of water. The minimum will still cover 2,000 gallons.
NEW RATE STRUCTURE $21.21 MINIMUM + $7.44/K
With this proposed rate structure, $420,275 will be generated by sales, which is enough to cover all expense requirements of Scenario 1 .
In Scenario 2, the only change is a 5% raise for employees being played from the Water Department. With the 5% raises, the total revenue needed becomes $423,845.
FY 2011
HR*** Maintainence €4 Repair Chemica Is Lab & Testing Utility Outside Service Misc & Other Revenue Reserve (2.5%)
Water Expense Summary
$ 192,903 $ 135,990 $ 41,294 $ 20,647 $ 13,500 $ 2,600 $ 25,414 $ 10,702 $ 5,351 $ 17,698 $ 10,619 $ 10,500
Total $ 314,611 $ 172,607
Total Fixed Variable $ 56,913 $ 20,647 $ 13,500 $ 2,600 $ 25,414 $ 5,351 $ 7,079 $ 10,500 $ 142,004
15% of Annual Debt Service $ 4,950 $ 4,950 Debt Service Reserve Requirement $ 3,000 $ 3,000 $ - Debt Service $ 30,000 $ 30,000 $ -
O&M Expenses + Debt Service $ 352,561 $ 210,557 $ 142,004
Depreciation $ -
Total $ 352,561 $ 210,557 $ 142,004
***Includes all HR $ totaled on HR Exp 2011 Tab
Bulk Water Purchases FY 2011 $ 44,898 Transportation $ 7,346 $ 71,284 Estimated Water Loss** $ 19,040
Total Revenue Needed $ 423,845
The Following chart illustrates necessary rates to cover the expenses of Scenario 2. This includes raising the minimum bill 5% (includes 2,000 gallons) to $23.56 and a flat rate charge of $6.78 per thousand gallons of water used.
INCREASE MINIMUM TO $23.56 + $6,78/K
11 SCENARIO3
Scenario 3 includes the 5% raise for employees fiom the Water Department, and also allows for $10,000 per year for the purchase of needed equipment. The HR chart is the same as Scenario 2 and is illustrated below.
FY 2011 1wo $/Hr3 BenefiWHP HourslYr WidEd OT per yr** Total $ From Water
Wateroperator $ 15JO $ 9,04 2080 $ 2,100 $ 52,103 $ 52,103
33% UtilitiesDirector $ 14,18 $ 12,06 2080 $ Waterclerk $ 13,02 $ 8.65 2080 $ Utilities Worker $ 8.66 $ 11,37 2080 $ Utilities Worker $ 9.82 $ 8,39 2080 $ Utilities Worker $ 13.65 $ 11,47 2080 $ Utilities Worker $ 9,45 $ 8 3 2080 $ Utilities Worker $ 9,45 $ 8.34 2080 $ Utilities Worker $ 9,45 $ 8,07 2080
1,395 $ 55,964 $ 18,468 ,055 $ 47,129 $ 15,552
108 $ 41,776 $ 13,786
26 $ 52,276 $ 17,251 176 $ 37,179 $ 12,269 456 $ 37,459 $ 12,362
$ 36,442 $ 12,026
146 $ 38,018 $ 12,516
25% City Manager $ 20J9 $ 7,81 2080 $ 58,243 $ 14,561 City Clerk $ 11.55 $ 10.92 2080 $ 1,180 $ 47,917 $ 11,979
Total $ 192,903 *Est Benefits include: Retirement Contribution = 12,5% of Gross Wages Workers Compo = $4,20/worker/hr Insurance =Basic Life - $,03/person/hr ANDvaried employer match on healthcare premium/hr Retiree Health Benefit Trust/Retiree Subsidy - $,93
**Estimated OTderived from avg OTin August 81 September 2010
With the added expenses of the 5% raise and $10,000 per year for equipment, the revenue needed to cover expenses raises to $433,845. The following chart illustrates the added expense.
HR*** Capital Improvement Maintainence 81 Repair Chemicals Lab &Testing Utility Outside Service Misc & Other Revenue Reserve (2.5%)
Total 192,903 $ 10,000 $ 41,294 $ 13,500 2,600 25,414 10,702 $ 17,698 $ 10,500 324,611 $
15% of Annual Debt Service $ 4,950 $ Debt Service Reserve Requirement $ 3,000 $ Debt Service $ 30,000 $
O&M Expenses + Debt Service $ 362,561 $
Depreciation
Total $ 362,561 $
***Includes all HR $ totaled on HR Exp 2011 Tab
Bulk Water Purchases FY 2011 $ 44,898 Transportation $ 7,346 $ Estimated Water Loss** $ 19,040
Fixed Variable 135,990 $ 10,000 20,647 $
$ $ $
5,351 $ 10,619 $
182,607 $
4,950 3,000 $ 30,000 $
220,557 $
$
$
220,557 $
71,284
56,913
20,647 13,500 2,600 25,414 5,351 7,079 10,500 142 , 004
-
142,004
142,004
Total Revenue Needed $ 433,845
The rates necessary to cover the expenses are illustrated below. They include raising the minimum bill (includes 2,000 gallons) by 12% to $24.60 plus a flat rate of $6.76 per thousand gallons of water.
INCREASE MINIMUM TO $24,60 t $6.76/K
11 COMPARISONS
11 COMPARISONS
\Current Rate Structure
Residential (2,855 G) Commercial (19,234 G) Institutional (32,195G)
The following charts demonstrate a comparison between the current rate structure averages and projected scenario proposes. The box on the right side of each chart projects average usage to 4,000 gallons.
CURRENT M/N/MUM CURRENT AVERAGE CURRENTAVG 4,000 $ 17.89 $ 25.53 $ 28.13 $ 17.89 $ 145.33 $ 145.33 $ 17.89 $ 229.58 $ 229.58
IScenario 2: General 08M + New Debt Service + 5%Raise from Water Department I I PROJECTED MINIMUM I PROJECTED AVERAGE PROJECTED AVG 4,000 I Residential I $ 23.76 I $ 29.36 I $ 31.52 Commercial Institutional
$ 23.76 $ 140.41 $ 140.41 $ 23.76 $ 228.28 $ 228.28
PROJECTED M/N/MUM PROJECTED AVERAGE PROJECTED AVG 4,000 Residential $ 24.60 $ 30.38 $ 32.34 Commercial $ 24.60 $ 141.10 $ 141.10 Institutional $ 24.60 $ 228.72 $ 228.72
11 PROFORMA - SCENARIO I
City of Salem - Water Proforma Statement of Income and Expenses
Description Per Books Adjustments Per Books Adjusted Going-Level Adjustment
Operating Revenues 414,682
Operating revenue deductions Operation and Maintenance Expenses 425,161 10,400 Depreciation Taxes Purchase of Water
414,682 -
435,561 (125,523)
71,284
Going-Level Proforma
414,682 420,275
310,038 310,038
71,284 71,284
Total Operating Expense: 425,161 10,400 435,561 (54,239) 381,322 381,322
Net Operating Income (Loss) (10,479) (10,400) . (20,879) 33,360 38,953
Other Income 7 7 7 7
Other Income Deductions 356 356 356 356
Debt Service 37,950 37,950 37,950
Net Income (10,828) (10,400) (21,228) 16,289 (4,939) 654
Water Proforma
Adjustments:
*a The $10,400 adjustment is a salary increase approved for Salem’s Water Operator.
Going-Level Adjustments’ :
*:* The ($125,523) adjustment reflects the expense savings associated with taking the City’s existing Water Plant offline in anticipation of beginning to purchase water from the City of Clarksburg.
transporting of water from Clarksburg, through Sun Valley PSD. *:* The $71,284 adjustment reflects the additional expense of the purchasing and
*:* The $37,950 adjustment reflects new debt service obligations
*:* The Proforma adjustment to Operating Revenue raises the revenue to necessary levels to cover all O&M expenses, purchasing and transport of water, and debt service obligations. Please refer to “Water Rate Analysis Report,” “Scenario 1” for hrther details.
WV RCAP has been working with Salem’s current City Clerk to ensure that expenses and revenues are now placed 1
in the proper line items of the standard chart of accounts. Former City Clerks did not accurately track expenses through this system.
WV RCAP will continue monitoring the Salem Water Department’s revenues and expenses over a 12 month period-including a 6 month review and a 12 month final review-to ensure accuracy.
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