Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1918-05-31

deficient for full protection against
conflagration hazards, but the mains
are very noticeably deficient in this
respect and definite suggestions for
reinforcement have been made.
The sanitary quality of the river
water is bad While the company is
protecting the water by chlorine
treatment, it is recognized by the
state board Of health that an addi-
tional safeguard in the form of fil-
ss+s:ation plant should be installed if
The river supply is to be continued.
The state board of health recon-
mends a ground water supply for the
future. The author concurs in this
provided such a
supply is proven to he feasible. In
any case the sanitary quality of the
water should be improved. All con-
nections with private supplies should
be entirely severed.
In order to determine fair value
of the existing works for the pur-
pose of creating a basis for water.
rates or for purchase, the author has
made a valuation Of the physical
plant and with certain additions has
reported the fair value Of the plant
at $95,371. This has been determined
by calculating the cost Of reproduc-
ing the present plant, using cur.
rent prices: Current prices are used
because the author believes that
these are more nearly representa-
tive of the prices that must prevail
in the future. The value Of the dam
was estimated and 7.120 of its value
assigned to the water works since
that Is the ratio OF the power used to
operate the water works to the pow
|er the dam is capable Of rendering
to fully developed power plant at
the site. The power house has been
valued in the same way and also by
an alternate method as shown In Sec
ton z and the average of the result
of the two methods taken as the, val
ue Of the power plant assignabe to
the water works. The distribution
system has been valued and Of
course assigned in its entirety to the
water works. After these various d.
visions were valued, each part Of
each division was considered separ-
ately, it's useful life estimated and
depreciation assigned in accordance
with that life and the portion Of it
already passed. These various sums
were then deducted and the physical
value of the plant found to be $74,-
996.
In consideration of the fact that
for many years the company operat-
ed with a gross revenue insufficient
to pay interest on its investment and
in further consideration of the inde-
terminable value of the site of the
water power, the water rights and
the going concern value of the
works, an additional value of $20,375
was added. This made the total val
ne $95,371.
| The determination Of proper rates
for water on this valuation was then
made. The first procedure was to
determine the proportionate value of
the plant assignable to fire preven-
tion. This was ascertained to be
$55,280. This portion must be paid
for by hydrant rental which amounts
to: $6,192 per annum on 36 hydrants,
Or $1,000 per hydrant. The remain.
ing 0,091 of value must yield a rev.
enue through the sale Of water ia
lconsumers. BY the calculations
shown in section 10, the rates arriv
ed at are as follows:
FOR the first 10000 gals. or frac
/ ton per quarter, 15c per 1000 gals
For the next 10000, 12c per 1000
gals.
For the next 10000, 1oc per 1ooc
For all over eo,ooo, Sc per 1000