Omaha daily bee., 1907-01-18
ESTIMATE ON WATER RATES
Err ginssr Kiersted Goes Into Cost Of
Service to the Company,
CONSIDERABLE HIGHER THAN EXPECTED
Revenue 60 Make works Profitable
Requires Rates Considerable In
Excess of New Ordinance,
Kiersted Says.

w. -Kiersted the expert hydraulic engi-
neer, in his report upon the water works,
now in the hands Of the city. has this to
say relative to rates which should, In his
opinion, be charged by the water works
compeny:
In considering what should be a fair gross
income on the property OF the Council
Blufs Water Works company II is neces-
sary to take into consideration not only
the present worth OF existing property, but
prcvemente, all of which are of a character
which add nothing TO the revenue producing
GspSTty .B Of The plant AcoqEdinsg the
Of physical property follows:
Present worth as estimated. $3.50. 1879
Going value as estimated. .....":..... 2O,7ts
Need improvements as estimated. i07,lS2
Total seOS I9O
TIE [ t 49, i t
provide for the operation, maintenance,
depreciation and renewals of the physical
property: Accordingly the gross income
pany shall have expended flO7ls2 in i'm
provements should approximate $50, 39S.
Should these improvements be not made.
then the gross income should not exceed
S1S,5Sf, or even less, for a poor water
service. 1t IL believed, however, that the
acceptance Of the larger gross revenue,
! accompanied by an insistence upon the
stated extensions. is the proper course Of
procedure. Upon this basis 1t Is estimated
that the cost OF the water service per
! 100000 gallons annual consumption on the
basis OF the present yearly consumption OF
! l.o42,OO9OOO gallons ls made up as follows:
Operation per 100000 gallons consump-
Maintenance, renewals and deprecia-
Interest per ], 900 gallons annual con, '''
| sumption OBSERVATION-DISCLOSURES. $500
Total ,,....,.......,.........,. .ss5. 80
/ or SS6, In round numbers, per 100000 gal
| Ions annual consumption.
Division of Income.
This amount of $50. which has been esti-
| mated as the cost of operating and main
tanning the water service per 100000 gall
| Ions is not fair measure of this cost at
| the faucet OF the consumer, for the reason
| that only about rs per cent of the service
delivered by the pumps Is actually avail
| able at the faucet Accordingly an. $50
service at the pumps is worth $l14.66 at the
It is further estimated that the propor-
| ton OF the gross income of $685., repre-
senting hydrant rental, is from 1876 to 1919
and accordingly the gross income becomes
subject to a division as follows:
From hydrant rents. SIS, T9(
From private consumers ......,."..,.S7S,6O go
Total ............................. $50, 80;
The estimated hydrant rental proper
toned among 2Ss MIGRANTS now in US,
amounts to about s54.s3 per hydrant Tn,
city council in the ordinance proposing a
revised schedule of rates placed the
hydrant rentals at s45.
Regarding income from private sources
Mr. Kiersted says:
Neither a municipality nor a private cor.
poratton can afford to sell water to private
consumers p,nn without having some minimum
measure of the expense of producing water
service In order that the consumers wht
exceed the cost of production and main
tenance shall not be called upon to max,
g9od the deficit OF those consumers who
4 % nA 20.
the water service in an amount less thar
the cost OF production. .,
} II Will be remembered that Chairman
wallace OF the special water works com
mittee Insisted that consumers should b
, charged only for what water they actual!
used, and taking this position, opposed an,
minimum rate.
Rate 10 Private Consumer.
: A rate Of S.Ss, Mr.. Kiersted says, is
fair minimum rate to be charged agains
each property service emitting the con
sumer to the use of 10000 gallons OF waite
yearly through faucet exclusive of bait
tubs, closets, sprinkling etc.
He figures the proposed minimum rate
as follows:
Thucet iate ''''''''''''..........'......
SLoset '''''''''''''s''.''.'..', ~
6aLn tuo ''''''''''''s'.'...,........ &c
bprinkling 90
Total SIS
For large consumers the schedule 1
placed as follows:
For more than $1,000 and less than 800 %
gallons yearly, 20 cents per 1000 gallons.
For more than 10000 and less than 7e0O
gallons, 10 cents.
For more than 10000 and less tina
, 100000 gallons. Is cents.
For more than 100000 gallons yearI
special rates may be made, provided n
{ water Is sold at rate less than 6% cent
: per 1000 gallons
v This method, Mr. Kiersted suggests, will
4 IL adopted, lead TO a generally metere