Opinion ID: 1700088
Heading Depth: 1
Heading Rank: 4

Heading: water and sewer

Text: In 1981 the District was still charging the lessees the same water and sewer rates as it did in the beginning, 1965. An engineering firm made its report to the District in November, 1981. [14] This report states that the available records of the District tend to combine many water and sewerage operating costs in with general operating expenses. The study continues, Therefore, it was not possible for Hensley-Schmidt, Inc., to accurately determine all of the operating costs, yet from our experience with comparable water and sewer systems, we know there are many other real costs to the District. The report then gave the major operating and maintenance costs, as estimated by the District staff, at $325,000 a year. This estimated cost did not take into consideration reserves for depreciation, for capital improvements such as wells, tanks, transmission mains, lagoons, e.g., the wear and tear and eventual replacement of capital expenditures. It mentioned that recently an expense of $50,000 had to be made to improve a well to meet standards. The District in 1981 was getting $142,473 a year for water, and $70,584 a year for sewerage, or a total of $213,057, as opposed to the $325,000 operating cost. The study showed that other comparable water and sewer systems in the area charged from 61 per cent to 80 per cent more than the District was charging for water, and 191 percent to 263 per cent more than the District was charging for sewerage collection. The study recommended drastic increases in the rates, and gave several alternatives. The alternatives ranged from an increase of $50,000 up to $100,000 per year additional on the water. The sewerage increase alternatives ranged from an additional $80,000 per year to over $200,000 per year increase. [15] In January, 1982, the Board did increase the water and sewer rates to bring in an estimated $409,374 a year, the increase beginning November 1, 1982. Sewerage rates were increased to bring in 75% of the water rates. The difference between the cost of furnishing water and sewerage from 1965 to 1982 to the lessees and what they paid  an average loss of at least $75,000 to $150,000 yearly  was made up, of course, in taxes from the five counties. Even now, we do not know from the records just what it costs the District to furnish water and sewer to the subdivisions. As to the solid waste, the engineering firm recommended a ten per cent service charge to take care of administrative costs. This was never implemented by the Board.