The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1919-02-25
STATEMENT OF THE ELECTRIC
LIGHT PLANT OF MADISON.
CITY ENGINEERS REPORT
FULL REPORT OF INCOME, EX
PENDITURES AND IMPROVE
MENTS FROM JAN. 1, 1911
TO AUG. l., 1918.

In making up this report l wish
first to state that a very careful ex-
animation has been made of the rec
ords in the office of the city auditor,
and every item of income has been so
reported, also every item of expense.
Time was not spent in looking up
and itemizing each bill, voucher or
invoice, but the different items
charged to the separate branches of
the system according to the designa-
ton upon the warrant by which each
such item was paid.
No true account can be rendered
as to the cost of operating the cleo
trio plant and OF producing electric
current, without separating the water
system from the electric, as nearly as
this can be done under the existing
circumstances, some the expenses be-
ing merged, to a certain extent, in
such manner that they cannot be sep
arated.
The actual cost of pumping ma
chinery, repairs, soft coal (Which was
used only for pumping from 1911 to
1879, the cost of water main extern
sions, repairs and maintenance can
be accurately determined, and a care
full examination of the record of ex-
penses for the period covered by this
report shows the total expenditure
for these purposes to be $~48,582.44.
This figure does not include any reg
ular salaries of men at the plant, or
for unloading the steam coal, for in
surance, or any items that were not
specifically c~hargeable to the water
system.
The total income from water and
meters sold during this period was
$34,775.49, leaving a clear deficit in
the water system of $~13,S06.95.
This item would probably be easily
$16,000.0 90 IL the water system were
charged with all of the expenses that
should be charged to Ii.
The only item of salary charged to
the water system is the salary of
Supt. Ed Rafferty,. Mr.. Rafferty, was
first employed as superintendent of
the water system about July, 1911.
and has since devoted his entire time
to this work and his salary is there
fore charged as a part of waterworks
Operating expense.
Any items that were doubtful, or
not specifically designated as expense
directly upon the water system are
allowed to be carried by the electric
system.
To determine the actual cost of OPP
Grating the electric plant, the state
ment will be as follows:
Total expenditures as
shown in original fl
nancial statement ...$195, 409.64
Less cost OF operating
water system ....... 4S,5S2.44
Less cost of permanent
improvements in cleo
trio system ......... ~49,122.90
Less the amount repre-
sented as meter de-
posits ........... 5,262.36
Total of last three items $102, 967.10
Leaving a net cost of operating the
electric plant and distributing sys-
tenn ~$92,441.94.
The cost of labor and materials for
maintaining. repairing and operating
the distributing system cannot be
charged as a part Of the cost of ac-
tually producing the current and put
ting ii on the line, therefore, to OBJ
tain the true cost Of actual produc-
ton of current We must determine
the amount of labor and materials
employed and expense incurred in
the actual maintenance, repair and
upkeep of the distributing system.
This amount we find to be $11,675.74
which, deducted from our form bal
ance, and from which should be de-
Quoted also the amount represented
as Refund Of Deposit" ($5,262.36),
which is not IN operating cost, but is
merely a floating account carried on
the books, and represents money de-
posited by the ISL when serv-
ice is begun, and returned to the
consumer at the termination of serv-
ice, leaving the actual operating ex-
pense $80,766.20. This figure still
leaves every doubtful item, every
item not specifically c~hargeable to
either of the accounts mentioned, as
a part OF the cost of operating the
plant itself, and of producing current.
Ii the bills were so itemized as to
charge each item to its proper ac-
count. several thousands of dollars
now charged as actual operating ex-
pense would be removed from this
account. But 1t is impossible to do
this without a careful examination Of
each bill or invoice, and would re-
quire perhaps two weeks time.
This operating expense account as
we now have it. includes all salaries
of engineers and firemen, superin-
tendent's salaries (during the time
when a superintendent has been en-
ployed, Grayum. Lunddren and
Quarnstrom) insurance on plant and
machinery (including pumping ma
chinery), repairs to machinery and
building. all supplies not specifically
chargeable to other accounts. dray-