Morris tribune., 1914-03-27
new WATER RATES
BASED ON COST
BIG LOSS TO BE COVERED
BY USERS.
Water Fund Has Been Running
Short and Loss Has Been
Made Up from General Fund
City VIII Pay Its Share as
heretofore.

The water fund of the City of Nor
ris ran $1,000 short last year. and
counting five per cent replacement
fund of 81, 750 more, it really ran
So, $50 short of what it should have
been.
The city commission, in order to
remedy this condition, raised the
water rate on Tuesday evening to
$3. 90 for the first 2, 900 gallon used
in six months, and raised the rate on
all other classes of users five cents
on each thousand gallons. The de-
tailed schedule of new rates will be
furnished to every user.
For the past week or more the COM
mission has been studying into the
cost of furnishing water to the patrons
of the system for the purpose of ar
irving at an equitable basis of rates.
There was voluminous data to be gone
over and many factors to be consider.
ed.
In order to establish, a minimum
rate or "service charge" the cost of
interest and replacement on that part
of the NatelS plant in which every
customer, big or little. is interested
was taken, and divided among all the
customers. The yearly interest charge
and five per cent depreciation on the
pumps, wells, engines. supply main
to the tank and tank, together with
the commercial expense of the system,
was found to be about So, 750. This
divided equally among the 500 Gus
toners Counting the city with its 48
hydrants as equivalent to 4S custom
ersl gives a service charge of So. so
per year. In other words. this means
that it costs the city $5. so to have
the pump station, main lead and tank
ready for each customer to use before
single drop of water is pumped for
anyone.
Next the operating expenses, con-
sisting of the interest and replace
ment of the mains used for distribut-
ing the water, the expenses for
gasoline, oil and operators salaries
were divided among the customers
according to the amount they use.
AS nearly as can be ascertained the
pumps are delivering into the lead
main about $4,000, 900 gallons per
year. OF this about $4,000, 900 is
used by the Great Northern, about
13,0O0.O 900 is registered by the vari-
Gus private meters about town, L.
100000 may be used for sprinkling,
and the remainder is used by the few
fat rate customers. watering troughs,
court house for rent of ground, at
fires. and disappears in leaks and
flushing hydrants. Excluding the
amount pumped for the Great North
ern and giving the operating fund
credit for the amount received from
the Great Northern, gives a cost of
about 80 cents per 1000 gallons for
delivering water about town.
The total cost of furnishing the first
1000 gallons would therefore be
So. 10 and for furnishing the first 3,
900 gallons So 40. As the city will
sell this for So. 90 and So. 55 respec-
lively, it will be seen that the new
rates should yield the city fair re-
turn, and yet keep the rate as near tC
cost as they can be made.
These rates are based on plant
valuation of $35. 900, the amount oi
the bonds issued to build the sy
stem. There is no doubt but that
much more than this has been in
vested. because many times thu
water fund has been helped out b.
the general fund, and the "bool
value" of the plant would therefore
be much higher. The commission
made no attempt to go into this
however, but simply put the rate
at a figure which will pay interes
and operating expense and provide
five per cent replacement fund. Tb'
commission have been very conserva
tive in placing the replacement fun'
at oily i've per cent. Recently,
crank shaft broke and caused an ex
pense of $500. Now new pump AM
motor is being installed at an expens
of over 81, 600. Not only does tn
plant wear out, but it gets out o
date. At the present time. the Who'll
supply main from the pump house t
the tank should be taken up and re
placed with a larger main, because o
tha high resistance enconnt rcd i