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Home My WebLink About1993 08 08 - Rate IncreaseCITY OF SEBASTIAN STAFF FOR FRANCHISE RATE INCREASE IN THE MATTER OF GENERAL DEVELOPMENT UTILITIES CO., INC. SEBASTIAN HIGHLANDS DIVISION TEST YEAR ENDED DECEMBER 31, 1991 CITY COUNCIL OF THE CITY OF SEBASTIAN AUGUST 9, 1993 SEE ACCOUNTANT'S REPORT CITY OF SEBASTIAN STAFF RECOMMENDATION FOR FRANCHISE RATE INCREASE IN THE MATTER OF GENERAL DEVELOPMENT UTILITIES CO., INC. SEBASTIAN HIGHLANDS DIVISION TEST YEAR ENDED DECEMBER 31, 1991 Page ACCOUNTANT'S REPORT 1 EXECUTIVE SUMMARY 2-3 STAFF'S ISSUES AND RECOMMENDATIONS 4-8 STAFF'S REVISED SCHEDULES: Water Rate Base 9 Sewer Rate Base 10 Water Net Operating Income 11 Sewer Net Operating Income 12 Water Operation & Maintenance Expense 13 Sewer Operation & Maintenance Expense 14 Cost of Capital- Company 15 Cost of Capital- Staff 16 Used & Useful Summary- Water 17 Rate Case Expense- Company 18 Rate Case Expense- Staff 19 Water Rate Schedules 20-22 Customer Deposits- Company 23 Customer Deposits- Staff 24 Sewer Rate Schedule 25-27 Customer Deposits- Company 28 Customer Deposits- Staff 29 Carrying Cost Recovery Charge- Water Treatment Plant 30 Carrying Cost Recovery Charge- Water Distribution Plant 31 Carrying Cost Recovery Charge- Sewer Treatment Plant 32 Carrying Cost Recovery Charge- Sewer Collection Plant 33 Water Service Availability Charges Schedule 34 Sewer Service Availability Charges Schedule 35 Monthly Customer Bill at 3,000, 5,000 & 7,000 Gallons Consumption 36 Comparable Area Rates 37-39 RACHLIN & COHEN CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PARR EM111P OF PROF.IOIAL /L[iOCIATI.1 1320 SOUTH DIXIE HIGHWAY 700 SOUTHEAST THIRD AVENUE PENTHOUSE SUITE 400 FT. LAUDERDALE, FLORIDA 33316-1102 CORAL GABLES, FLORIDA 33146-2964 TELEPHONES: BROWARD (305) 764-7717 TELEPHONES: DADE (305) 667-0412 DADE (305) 667-0412 BROWARD (305) 764-7717 FAR: (305) 764-7835 FAR: (305) 665-7456 Honorable Mayor and City Council of the City of Sebastian Sebastian, Florida At your request, we performed the procedures enumerated below with respect to a Franchise Rate Increase recommendation for General Development Utilities Company, Inc. (Applicant), Test Year Ended December 31, 1991 (test year). These procedures were performed solely to assist you in making franchise rate decisions and should not be used for any other purpose or by parties other than the City Council of the City of Sebastian. Our procedures consisted of the following: 1. We analyzed the Applicant's Accounting Exhibit (the Exhibit) for Franchise Rate Increase (Rate Exhibit) for the test year prepared by Milian, Swain, & Associates, dated April 30, 1993. 2. We modified the Applicant's Accounting Exhibit as follows: a. Recalculated the water and sewer rate base and revenue requirement for the effect of the adjustments. b. Calculated adjustments to operations and maintenance expenses, depreciation and taxes to properly reflect test year operations. C. Reworked the Applicant's Rate Exhibit for Items 2(a) and (b) above. Our findings and recommendations can be found on pages 4 through 8. Because the above procedures are substantially less than an examination, the objective of which is the expression of an opinion on the Exhibit, we do not express an opinion on any of the data contained in the Accounting Exhibit for Franchise Rate Increase. In connection with the procedures referred to above, no matters came to our attention that caused us to believe that the specified accounts or items should be further adjusted. Had we performed additional procedures or had we made an examination of the Exhibit, matters might have come to our attention that would have been reported to you. This report relates only to the accounts or items specified above and does not extend to any financial statement of the General Development Utilities Company, Inc. taken as a whole. Coral Gables, Florida August 9, 1993 MEMBER OF SCMMIT INTERNATIONAL ASSOCIATES, INC. WITH OFFICES IN PRINCIPAL CITIES THROUGHOLT THE WORLD. MEMBER OF THE AMERICAN INS7DTLTE OF CERTIFIED PUBLIC ACCOUNTANTS DIVISION FOR SEC PRACTICE SECTION AND THE PRD'.ATE COMPANIES PRACTICE SECTION MEMBER OF THE FLORIDA INSTITLTE OF CERTIFIED PUBLIC ACCOUNTANTS t GENERAL DEVELOPMENT UTILITIES CO., INC. SEBASTIAN HIGHLANDS DIVISION 1991 RATE CASE APPLICATION TEST YEAR ENDED DECEMBER 31, 1991 EXECUTIVE SUMMARY REPORT REPORT WATER REFERENCE SEWER REFERENCE Applicant Requested Rate Base $2,057,036 Page 9 $ 733,437 Page 10 Staff Adjustments: Applicant Requested Revenues $ 273,754 Page 11 $ 157,047 Page 12 Staff Adjustments 61,998) 15,013) Staff Applicant Requested Operating Expenses 433,912 Page 11 $ 241,369 Page 12 Staff Adjustments: -2- r, GENERAL DEVELOPMENT UTILITIES CO., INC. SEBASTIAN HIGHLANDS DIVISION 1991 RATE CASE APPLICATION TEST YEAR ENDED DECEMBER 31, 1991 EXECUTIVE SUMMARY PRESENT REQUESTED RECOMMENDED REFERENCE Water Base Facility Charge $ 13.05 $ 25.87 $ 16.52 Page 20 Charge per 1,000 Gallons (First 10,000) 1.24 MFR Pgl Charge per 1,000 Gallons (Over 10,000) 1.55 MFR Pgl Charge per 1,000 Gallons (First 8,000) 2.12 3.20 Page 20 Charge per 1,000 Gallons (Over 8,000) 3.18 3.73 Page 20 Sewer Base Facility Charge $ 15.12 $ 24.35 $ 22.00 Page 25 Charge Maximum 12,000 Gallons 1.07 MFR Pg29 Charge Maximum 8,000 Gallons 4.33 4.37 Page 25 Water Customer Deposit- Residential 50.00 75.00 66.00 Page 24 Sewer Customer Deposit- Residential 50.00 90.00 83.00 Page 29 Carrying Cost Recovery Charge (One Year) Water Treatment Plant See Reference Page 30 Water Distribution Plant See Reference Page 31 Carrying Cost Recovery Charge (One Year) Sewer Treatment Plant See Reference Page 32 Sewer Collection Plant See Reference Page 33 Water Service Availibility Charges See Reference Page 34 Sewer Service Availibility Charges See Reference Page 35 Monthly Water & Sewer Bill @ 3,000 Gallons Consumption 69.57 61.23 Page 36 @ 5,000 Gallons Consumption 82.47 76.37 Page 36 @ 7,000 Gallons Consumption 95.37 91.51 Page 36 -3- CITY COUNCIL OF THE CITY OF SEBASTIAN ISSUES AND RECOMMENDATIONS SUMMARY GENERAL DEVELOPMENT UTILITIES CO., INC. SEBASTIAN HIGHLANDS DIVISION APPLICATION FOR ADJUSTMENT OF FRANCHISE RATE INCREASE ISSIIE 1• Should Franchise Rate Increase be granted? Recommendation: Yes, the Franchise Rate Increase should be granted incorporating the adjustments indicated below. ISSUE 2• Staff adjusted 1991 test year reported Contributions In Aid of Construction for cash contributed CIAC during 1992 less adjustments. CIAC for 1992 $(165,534) Applicant rate case adjustment (Reflections) 39,528 Contributed plant: lines 42,897 hydrants 1,320 Cost A.D Accounting transfer- filters (30,000 - 7,666) 23,334 Meter adjustment (24,771'- 1,340) 23.431 Staff adjustment Water CIAC See Water Rate Base Schedules (Page 9) ISSIIE 3• Are Deferred Tax Debits to be included as part of rate base? Recommendation: No, Deferred Tax Debits are to be netted against any Deferred Tax Credits in the Cost of Capital section of the MFR's. Adjust amounts on Line 8 of Water and Sewer Rate Base Schedules (Pages 9 & 10 ). Subtract these amounts $ 247,582 water + $ 121,943 sewer from Deferred Tax Credits (Line 4, Column 3) on Schedule of Regulatory Rate of Return Schedule II-9WS. See adjusted Deferred Tax Credits on staff's adjusted schedule (Page 16). ISSIIE 4• The incorrect leverage graph was used for measuring returns on common equity. Discussion: The leverage formula, (9.96 percent plus 1.26 / equity ratio) was used on the applicant's calculated Schedule of Regulatory Rate of Return (Page 15, Note 1) -4- I Recommendation: Annual reestablishment of authorized range of returns on common equity for water and wastewater utilities, pursuant to Section 367.081(4) (f), Florida Statutes, Docket No. 920006 -WS, Order No. PSC-92-0686-FOF-WS issued 7/21/92 derives the appropriate formula as (9.11 percent plus 1.33 / equity ratio). The Return on Equity adjusted calculation is shown on the attached staff revised schedule (Page 16, Note 1). ISSIIE 5• The applicant requested $40,618 and $19,482 in total water and sewer rate case expenses, respectively (Schedule II-6WS Page 18). Discussion: Based on information obtained from the applicant and their consultants, staff believes that this amount is excessive. Staff has revised these estimates to a total of $36,455 for water and $17,485 for sewer rate case expenses. Recommendation: The adjustments to the applicants rate case expense amortization are as follows. (See report Page 19 for staff adjusted Rate Case Expense Schedule.) Water Regulatory Commissions Expense -Rate Case $ (4,541) Sewer Regulatory Commissions Expense -Rate Case (2,178) ISSUE 6• Should the Provision for Income Taxes be adjusted for the change to the Applicant's requested Net Operating Income? Recommendation: Yes, Provision for income taxes should be adjusted for the tax effect of the change to Net Operating Income. The Composite Income Tax Rate used by the Company was 37.63%. Water Provision for Income Taxes $( 23,330) Sewer Provision for Income Taxes $( 5,649) ISSIIE 7• What is the amount of working capital to be included in rate base? Discussion: The working capital amount is determined by the following calculation: staff's adjusted operations and maintenance expenses divided by 8. Recommendation: Since the operations and maintenance expenses were adjusted by staff, there is a corresponding adjustment to working capital: -5- Recommendation: Since the operations and maintenance expenses were adjusted by staff, there is a corresponding adjustment to working capital: Water Working Capital Sewer ISSIIE 8• $(568) (272) In preparing the rate development schedules for water (page 23) and sewer (page 28), the Company allocated expenses based on percentages that staff disagrees with. Discussion: The percentages were allocated heavily to the base facility charge in comparison to gallonage charge. Recommendation: Staff decided to utilize Florida Public Service Commission Allocations. ISSIIE 9• Should initial connection and miscellaneous service charges for normal reconnection be increased to $25.00 during business hours and $35.00 after business hours. Discussion: The Public Service Commission's standard for initial connection and miscellaneous service charges for normal reconnection is $15.00. Recommendation: Staff proposes that charge only be increased to $15.00, during regular working hours. Staff also recommends that charge for after working hours be increased to $25.00 to recover overtime labor costs. (See schedule I -5W, MFR page 7) ISSIIE 10• The Company reporting of used and useful for the Water Treatment Plant is incorrect (.569/.670 — 84.93%) See schedule IV -1W of MFR's. Recommendation: Fire flow of 500 gpm for 2 hours is low. ISO recommends 750 gpm for 2 hours for residential fires and 2000 gpm for 4 hours for commercial fires. The impact of using 750 gpm fire flow would be to increase the used and useful to .599/.670 — 89.94%. However, considering that the utility has a 500,000 gallon storage tails, it would be permittable to serve peak demand equalization and any fire from storage. Therefore, the fire flow should not be deducted from the plant capacity IM or conversely added to the demand. Deducting the 60,000 gpd fire flow results in a used and useful of .509/.670 — 75.97%. The staff adjusted used and useful Percentage from 85% (rounded) to 76% (rounded) indicates that 24% of Water Treatment Plant - Structures and Improvements should be held for future use. Calculate non -used and useful staff adjusted amount by multiplying the percentage (24X - 15% — 9%) by Struct. and Improvs. in service and the related accumulated depreciation. Schedule III -3W Schedule III -4W ISSUE 10H• Discussion: Struct & Improvs Accum. Deprec Total Staff Adjustment $ 1,178,666 X 9% — $ 106,080 (344,849) X 9% — (31,036) $ 75.044 The portion of the Structures and Improvements held for future use based on the staff calculation were depreciated by the utility in the test year based on a 30 year service life. Recommendation: Calculate the depreciation expense on the staff adjusted non -used portion of the Structures and Improvments. Non -Used and Useful Struct. and Improvs. $ 106,080 / 30 years — $ 3,536 ISSUE 11• The storage tank cost and used and useful was not discussed in the analysis by the Company. Discussion: The cost of the storage tank is $ 171,846 less accumulated depreciation of (30,964) — $ 140,882. (Information from Company RW Report 866 - 12/31/91) Recommendation: If we use the tank to meet peak hour equalization flows of 25X of max day flow (116,500) and fire flow of 90,000 gpd, we should consider the tank at 41.3% used and useful. The staff adjusted Used and Useful Percentage to 41.3% indicates that 58.7% of Distribution Reservoirs - Water Storage Tank should be held for future use. Water Storage Tank $ 171,846 X 58.7% — $ 100,874 Accum. Depreciation (30,964) X 58.7% — (18,176) Total Staff Adjustment $ 82.698 -7- ISSUE 11B• Discussion: The portion of the Water Tank held for future use based on the staff calculation were depreciated by the utility in the test year based on a 50 year service life. Recommendation: Calculate the depreciation expense on the staff adjusted non -used portion of th e and Water Tank. Non -Used and Useful Water Tank $ 100,674 / 50 years — $ 2.017 M I Schedule o ate Rate Base Company:GDU/Sebastlan Highlands Schedule Year Ended: 12/31/91 Interim [ ] Final [X] Historical [X] Projected [ ] Explanation: Provide the calculation of average rate base for the test year, showing all adjustments. All non—used and useful items should be reported as Plant Held For Future Use. If method other than formula approach (1/8 O&M) is used to determine working capital, provide additional schedule showing detail calculation. City of Sebastian Schedule: III -1W Page 1 of 1 Preparer: Rachlin & Cohen, CPA'S (1) (2) (3) (4) (5) (6) Balance Adjusted Staff Line Per Utility Utility Staff Adjusted No. Description Books Adjustments Balance Adjustments Balance 1991 G DO 1991 1 Utility Plant In Service 5,316,563 (23,443) 5,293,120 5,293,120 2 Utility Land & Land Rights 4,993 0 4,993 4,993 3 Less: Non—Used & Useful Plant — Furit.� AdPs4- Lrnnr {�' z�.311 0 (894,555) (894,555) (157,742) Issue 10,11 (1,052,297) V4 eF L.:..i,SoF-Fwiy sise.yc-j'�KC 4 Less: Accumulated Depreciation (1,396,279) 30,635 (1,365,644) (1,365,644) 5 Less: CIAC (1,416,967) (39,528) (1,456,495) (35,024) Issue 2 (1,491,519) 6 Accumulated Amortization of CIAC 203,683 1,582 205,265 205,265 7 Advances For Construction (39,528) 39,526 0 0 8 Deferred Taxes 314,575 (66,993) 247,582 (247,582) Issue 3 0 9 Working Capital Allowance 22,171 599 22,770 (568) Issue 7 22,202 10 Total Water Rate Base 3,009,211— K 2.057.036 (4 40 916) 1.616.120 �— — Schedule of Sewer ate Base Company:GDU/Sebastian Highlands Schedule Year Ended: 12/31/91 Interim [ ] Final [X] Historical [X] Projected [ ] Explanation: Provide the calculation of average rate base for the test year, showing all adjustments. All non—used and useful items should be reported as Plant Held For Future Use. If method other than formula approach (1 B O&M) is used to determine working capital, provide additional schedule showing detail calculation. (1) Line No. Description 1 Utility Plant In Service 2 Utility Land & Land Rights 3 Less: Non—Used & Useful Plant 4 Less: Accumulated Depreciation 5 Less: CIAC 6 Accumulated Amortization of CIAC 7 Deferred Taxes 8 Working Capital Allowance 9 Total Sewer Rate Base (2) Balance Per Books 1991 2,613,363 9 (3) Utility Adjustments 106,011 0 City of Sebastian Schedule: III -1S Page 1 of 1 Preparer: Rachlin & Cohen, CPRS (4) (5) (6) Adjusted Staff Utility Staff Adjusted Balance Adjustments Balance 1991 2,719,394 2,719,394 0 0 0 (789,607) (789,607) (789,607) (782,152) 2,004 (780,148) (780,148) (705,417) (705,417) (705,417) 152,141 152,141 152,141 176,756 (54,813) 121,943 (121,943) Issue 3 0 13,618 1,513 15,131 (272) Issue 14,859 1.468.329 (734.892) 733.437 (122.2151 811222 Schedule o Water Net Operating Income City of Sebastian Compar: GDU / Sebastian Highlands Schedule: II -IW Schedule Year Ended: 12/31/91 Page 1 of 1 Interim [ ] Final [XJ Historic [X] or Projected [ ] Preparer: Rachlin & Cohen CPA'S Explanation: Provide the calculation of net operating income for the test year (1) (2) (3) (4) (5) (6) (7) (8) Balance Utility Utility Required Required Staff Line Per Test Year Adjusted Revenue Annual Staff Adjusted No. Description Books Adjustments Test Year Adjustment Revenues Adjustments Balances 1991 601,149 (61,9%) 539,151 5 1 OPERATING REVENUES 2 Water Sales $312,328 $12,970 $325,298 $273,326 $598,624 ($61,901) $536,723 3 Other Revenues 34,533 (32,436) 2,097 428 2,525 ($97) 2,428 4 Total 346,861 (19,466) 327,395 273,754 601,149 (61,9%) 539,151 5 Operation & Maintenance 177,369 4,793 182,162 0 182,162 (4,541) Issue 5 177,621 6 Depreciation, net of CIAC Amort. 126,011 (31,220) 94,791 0 94,791 (5,553)Issue 10B, 11 B 89,236 7 Taxes Other Than Income 59,522 136 59,656 0 59,658 59,658 8 Provision for Income Taxes 0 (5,713) (5,713) 103,014 97,301 (23,330) Issue 6 73,971 9 OPERATING EXPENSES $362,902 ($32,004) $330,898 $103,014 $433,912 ($33,424) $400,488 10 NET OPERATING INCOME ($16.041) $12538 ($3.503) $170.740 $167,237 ($28.574) 38,66311 RATE BASE 3.009.211 2.057.036 2.057.036616,120 C;�l 12 RATE OF RETURN -0.53% -0.17% 8.13% 8.58% Schedule of Sewer Net Operating Income Compar: GDU / Sebastian Highlands Schedule Year Ended: 12/31/91 Interim [ ] Final [X] Historic [X] or Projected [ ] Explanation: Provide the calculation of net operating income for the test year City of Sebastian Schedule: ]I -1S Page 1 of 1 Preparer: Rachlin & Cohen CPA'S (1) (2) (3) (4) (5) (6) (7) Balance Utility Utility Required Required Line Per Test Year Adjusted Revenue Annual Staff No. Description Books Adjustments Test Year Adjustment Revenues Adjustments 1991 12,100 121,045 0 121,045 1 OPERATING REVENUES 2 Sewer Sales 3 Other Revenues 4 Total 5 Operation & Maintenance 6 Depreciation, net of CIAC Amort. 7 Taxes Other Than Income 8 Provision for Income Taxes 9 OPERATING EXPENSES 10 NET OPERATING INCOME 11 RATE BASE 12 RATE OF RETURN $151,741-- ($7,791) $143,950 $157,047 -$300,997 ($15,013) -,-. -700 (700) 0 0 ---- 0 $0 152,441 (8,491) 143,950 157,047 300,997 (15,013) 108,945 12,100 121,045 0 121,045 (2,178) Issue 5 62,664 (25,667) 36,997 0 36,997 47,839 795 48,634 0 48,634 0 (24,404) (24,404) 59,097 34,693 (5,649) Issue 6 $219,448 ($37,176) $182,272 $59,097 $241,369 ($7,827) ($67 0071 $28.685 ($38.322) $97 950 $59,628 ($7.1861 1.468.329 $733.437 $733 437 -5.22%,; 813% (8) Staff Adjusted Balances $285,984 0 285,984 118,867 36,997 48,634 29,044 $233,542 $52.443 $611.222 ;'8.58% Detail Of Water Operation & Maintenance Expenses By Month- 1991 City of Sebastian Company: GDU / Sebastian Highlands Schedule: II -4W Page 1 of 1 Test Year Ended: December 31, 1991 Preparer: Rachlin & Cohen, CPA's Explanation: Provide a schedule of operation and maintenance expenses by [)rimary account for the test vear. K -T C" c (1) (2) (3) (4) (5) (6) (7) Utility Staff Line Total Utility Adjusted Staff Adjusted No. Acct. # DESCRIPTION O & M Adjustments Balance Adjustments Balance 1 303 PAYROLL INSURANCE ` 14,200 (7,233) 6,967 6,967 2 304 GROUP INSURANCE 8,100 (1,602) 6,498 6,498 3 COMPENSATED ABSENCES (1,668) (1,666) (1,668) 4 321 PUBLIC RELATIONS_-- r .,'- 72 72 72 5 623 FUEL'OK POWER PURCHASED 15,374 15,374 15,374 6 626 PUMPING LABOR 1,557 (1,557) 0 0 7 633 CONTACTUAL SERVICES - LEGALI , \ 111 111 111 8 641 e TREATMENT - CHEMICALS _ "^<_<O�' ) 7,120 7,120 7,120 9 642 TREATMENT - LABOR 39,083 (1,732) 37,351 37,351 10 643 TREATMENT - EXPENSE 10,122 10,122 10,122 11 902 METER READING - LABOR 416 1,836 2,252 2,252 12 903 CUSTOMER ACCOUNTING - LABOR 4,155 2,419 6,574 6,574 13 904 UNCOI I FrTIRI F ACCOUNTS � 2,892-) 2,892 2,892 14 905 CUSTOMER ACCOUNTING EXPENSE 4006 4,006 4,006 15 920 A & G LABOR 6,872 4,744 11,616 11,616 16 921 A & G EXPENSE 5,339 (1,016) 4,323 4,323 17 923 MANAGEMENT FEES 10,340 10,340 10,340 18 924 PROPERTY INSURANCE 14,536 14,536 14,536 19 928 REGULATORY COMMISSION EXPENSE 417 13,539 13,956 (4,541) Issue 5 9,415 20 933 TRANSPORTATION EXPENSES 1,404 1,404 1,404 21 934 PENSION EXPENSE 460 (460) 0 0 22 930 MISCELLANEOUS GENERAL EXPENSE 375 375 375 23 630 MAINTENANCE OF PUMP - LABOR 93 (93) 0 0 24 650 MAINTENANCE OF TREATMENT PLANT - LABOR 10,007 (4,279) 5,728 5,728 25 652 MAINTENANCE OF TREATMENT PLANT - EXPENSE 17,757 17,757 17,757 26 670 MAINTENANCE OF MAINS - LABOR 550 7 557 557 27 674 MAINTENANCE OF MAINS - EXPENSE 18 18 16 28 676 MAINTENANCE OF METERS - EXPENSE 2,708 2,708 2,706 29 677 MAINTENANCE OF HYDRANTS - EXPENSE 417 417 417 30 680 MAINTENANCE OF SERVICES - LABOR 302 17 319 319 31 681 MAINTENANCE OF METERS - LABOR 214 131 345 345 32 682 MAINTENANCE OF HYDRANTS - LABOR 20 72 92 92 33 TOTAL O&M 177,369 4,793 182,162 (4541) 177,621 K -T C" c Detail pt Sewer Operation & Maintenance Expenses By Month- 1991 City of Sebastian Company: GDU / Sebastian Highlands Schedule: II -4S Page 1 of 1 Test Year Ended: December 31, 1991 Preparer: Rachlin & Cohen, CPA's Explanation: Provide a schedule of operation and maintenance expenses by primary account for the test year. S CV�I t�2 (1) (2) (3) (4) (5) (6) (7) Utility Staff Line Total Utility Adjusted Staff Adjusted No. Acct, # DESCRIPTION O & M Adjustments Balance Adjustment Balance 1 303 PAYROLL INSURANCE 7,214 (2,753) 4,461 4,461 2 304 GROUP INSURANCE COMPENSATED ABSCENCES 4,218 (58) 4,160 4,160 3 290 COMPENSATED ABSCENCES (634) (834) (834) 4 623 FUELOF POWER PURCHASED 25,050 25,050 25,050 5 624 PUMPING LABOR 561 1,279 1,840 1,840 6 641 TREATMENT - CHEMICALS 2,812 2,812 2,812 7 642 TREATMENT - LABOR 18,661 4,926 23,587 23,587 8 643 TREATMENT -EXPENSE 8,322 6,322 8,322 9 903 CUSTOMER ACCOUNTING_ LABOR 2,960 1,341 3,421 3,421 10 904 Q::�- UNCOL CTIBLE ACCOUNTS (::::-2,465 2,465 2,465 11 905 CUSTOMER ACCOUNTING EXPENSE 1,962 1,962 1,962 12 920 A & G LABOR 4,996 3,113 8,111 8,111 13 921 A & G EXPENSE 4,073 (508) 3,565 3,565 14 923 MANAGEMENTFEES 5,144 5,144 5,144 15 924 PROPERTY INSURANCE 7,061 7,061 7,061 16 928 REGULATORY COMMISSION EXPENSE 0 6,494 6,494 (2,178) Issue 5 4,316 17 930 MISCELLANEOUS GENERAL EXPENSE 54 54 54 18 933 TRANSPORTATION EXPENSES 687 687 687 19 934 PENSION EXPENSE 211 (211) 0 0 20 611 MAINTENANCE SOURCE OF SUPPLY 215 215 215 21 630 MAINTENANCE OF PUMP / LIFT STATION LABOR 1,667 345 2,012 2,012 22 633 MAINTENANCE OF PUMP / LIFT STATION EXPENSE 1,650 1,650 1,650 23 650 MAINTENANCE OF TREATMENT PLANT - LABOR 4,249 (1,868) 2,381 2,381 24 652 MAINTENANCE OF TREATMENT PLANT - EXPENSE 6,425 6,425 6,425 25 TOTAL O & M 108,945 12,100 121.045 (2.178) 118.867 S CV�I t�2 000065 1 1 1 O 1 • 1 O 8 ; I 1 Ci C' S I r o 0 O O O i N N A✓ � � ' m •ou � � o P 1 V✓ J N O v � a � n � ism ' ✓tl• n d � e P ,o. S• ,� � � c ✓ -ii a. 'n � N '� � a tl y ti 1 1 1 L Z P d ~ y• ✓^ HeiYY O r U J tl Inl Y B C I •J pTIN.I O rnl-0I a p O P y P N F $ OO tl al p P ; n L i • O P 1 � 'J V V Y ' o • 0 • � J o ✓ tl.. o +S m o ry u I v� vu > > a„ o$ r .z. ✓ m q 00 v L m o m tl tlo m F ei ed � o tl,� �� taa _ 0 a Ol G '� F 9 ✓ y a C. V S )• U pOo C •• P � U O a • _ J I d $ I n n n L gO�✓p y N I N V F W 000065 Schedule of Requested Cost of Capital City of Sebastian Beginning and End of Year Average Schedule: II-9WS Company: GDU/Sebastian Highlands Page 1 of 1 Preparer: Rachlin & Cohen CPA's Test Year Ended: 12/31/91 Schedule Year Ended: 12/31 /91 Historic [X) or Projected [ ) Sudsidiary [ j or Consolidated [X) 1991 Staff Adjusted Balances Explanation: Provide a schedule which calculates the requested Cost of Capital on a beginning and end of year average basis. If a year-end basis is used, submit an additional schedule reflecting year-end calculations. Line No. 1 2 r m 3 4 (1) (2) (3) (4) (5) GDU Reconciled Year -End To Requested Cost Weighted Class of Capital 12/31/91 Rate Base Ratio Rate Cost Common Equity Long -Term Debt Customer Deposits Deferred Tax Credits 5 Total Notes: $ 59,344,791 1,751,721 78.65% 1,365,139 40,296 1.81% 544,794 39,384 1.77% 3,475,364 395,941 Issue 3 17.77% $ 64 730.088 2 227.342 j 100.00% l 1) Return on Equity= 9.11 + (1.33 / Equity Ratio) Issue 4 Equity Ratio= 97.75% Return on Equity= 10.47% 2) Effective variable rate of LTD 3) Customer Deposits collected by Sebastian Division 4) Deferred Income Tax relating to Sebastian Division 5) Water Rate Base 1,616,120 =—r- f b` `I Sewer Rate Base 611,222 v Ps�- fO 2.227.342\ 64u 10.47% 8.24% 11.00% 0.20% 8.00% 0.14% 0.00% 0.00% 8.58% Used & Useful Summary Company: GDU / Sebastian Highlands Test Year Ended 12/31/91 Explanation: Provide a summary of the Items included In Non—used and Useful Plant (1) Line * Description 1 Plant in service 2 Lend 3 Less: Accumulated Depreciation 4 Total 5 Exhibit III Schedule 111-7W Preparer: Rachlin 6 Cohen CPA's (2) (3) (4) (5) (e) (7) $894,555 Adjusted $157.742 Staff Per Utility Utility staff Adjusted Books Adjustments Balance Adjustments Balance $ $1,143,749 $1,143,749 $206,954 Issues 10,11 $1,350,703 (249,194) (249,194) (49,212) Issues 10,11 (298,406) $894,555 $894555 $157.742 $1.052.297 i C" n r M w O • 0 m +� P t M O. C ^ M m w N t t r . I e •u go ✓ P . c Y PO N avr H UO G O y u M '� Ei ✓eu � 4 w •� U d S a a Y C O4 ^ � 6 m w Y g t o G F F � C" n o t,^ o 0 s n . ^ M m N t t �• go � e N � F � t t : t o m P• m m n ^• w h t �• s • M S. o a • � � i e Y W Y C �=ti 7 • �• • � w J w O j • Y • • J M • O M (t�� • O � U • y n • U • Y Yoe pY ■41 Y W t CO a • . Y ••J L 'J �I Y O O C V J F O 0 w M Analysis of Rate Case Expense — 1991 Cl ty of Sebastian CompanyGDU / Sebastian Highlands Schedule: II-6WS Test Year Ended: December 31, 1991 Page 1 of 1 1991 Staff Adjusted Preparer: Rachlin & Cohen CPA'S Explanation: Provide the total amount of rate case expense requested In the application. State whether the total includes the amount up to proposed agency action or through a hearing before the Commission. Provide a list of each firth providing services for the applicant, the individuals for each Ann assisting in the application, including each individual's hourly rate, and an estimate of the total charges to be incurred by each firm, as well as a description the type of services provided. Also nmvide the additional information for amortization and allocation method, includinq support behind these determinations. Une Rim or No. Vendor Name Counsel, Consultant or Witness 1 Milian, Swain & Associates 2 Milian, Swain & Associates 3 Mi lian, Swain & Associates 4 Subtotal 5 Mi lien, Swain & Associates 6 Milian, Swain & Associates 7 Subtotal 6 Milian, Swain & Associates 9 Milian, Swain & Associates 10 Milian, Swain & Associates 11 Subtotal 12 Milian, Swain & Associates 13 Milian, Swain & Associates 14 Expenses 15 Subtotal 16 Hopping, Boyd, Green & Sams 17 Other: 16 Notice Requirements 19 Printing, Binding, Filing Package 20 Miscellaneous 21 Subtotal 22 Total AppAcant Consultants A Milian Consultants A Milan D. Swain A Milian D. Swain Consultants D. Swain Consultants Counsel ioury Rate Per Person $28 to $95 $t25 $28 to $95 $125 $95 $125 $95 $75 $95 $75 $35 to $175 Staff Adjuste( Amounts 2,360 $475 375 1,500 2,350 $9,000 $1,650 500 2:M 500 940 23 Rachlin & Cohen Accountants $80 to $200 15,000 24 Camp Dresser & McKee Inc. Engineers $100 to $130 5,000 25 Total City :3 (A) Water Prior Unamortized Rate Case Expense 0 Current Rate Case Expense Applicant (3 Years) $22,938 Current Rate Case Expense City (1 o Years) 13,517 Total Projected Rate Case Expense 36 4 Annual Amortization (3 Years) Annual Amortization (10 Years) Method of Allocation Between Systems: Number of Customers Allocation % Type of Service Rendered Preparatlon of Rnandal Exhibits Preparation Used And Useful Exhibits Staff response to auditors Preparation for Hearing Preparation for Hearing Hearings Hearings Hearings Post Hearing Post Hearing Telephone, Copies Etc. Legal Accounting Engineering (13) (C) Sewer Total 0 0 $11,002 $33,940 6,483 20,000 $7,646 $3,667 $11,313 1,352 648 2,000 B 996 316 13 313 1,155 554 1,709 67.58% 32.42% 100% Schedule of Company and Staff Proposed Rates- Water City of Sebastian Company: GDU / Sebastian Highlands Schedule I -1W Test Year Ended: December 31, 1991 Page 1 of i Preparer: Rachlln 6 Cohen, CPA's Explanation: Provide a calculation of revenues at company and staff proposed rates using the billing analysis. (1) (2) (3) (4) Proposed Proposed Line Company Staff # Class / Meter Size Rates Rates 1 Residential 2 BFC - 5/8' x 3/4" $25.87 $16.52 3 1 at 10,000 gals 1 at 8,000 gals 2.12 3.20 4 over 10,000 gals over 8,000 gals 3.18 3.73 5 BFC - 1" 64.68 41.30 6 1 at 25,000 gals 1 at 8,000 gals 2.12 3.20 7 over 25,000 gals over 8,000 gals 3.18 3.73 8 BFC - 1 1/2" 129.35 82.60 9 1 at 50.000 gals 1 at 8.000 gals 2.12 3.20 10 over 50.000 gals over 8,000 gals 3.18 3.73 11 BFC - 2' 206.96 132.16 12 1 at 80,000 gals 1 at 8,000 gals 2.12 3.20 13 over 80,000 gals over 8,000 gals 3.18 3.73 14 Genial Service (Commercial 6 Multiple Service ) 15 BFC - 5/8" x 3/4" 25.87 16.52 16 1 at 10,000 gals Gallonage / MG 2.22 3.20 17 over 10,000 gals 3.20 18 BFC - 1" 64.68 41.30 19 1 at 25,000 gals Gallonage / MG 2.22 3.20 20 over 25,000 gals 3.20 21 BFC - 1 1/2' 129.35 82.60 22 1 at 50,000 gals Gallonage / MG 2.22 3.20 23 over 50,000 gals 3.20 24 BFC - 2" 206.96 132.16 25 1 at 80,000 gals Gallonage / MG 2.22 3.20 26 over 80,000 gals 3.20 27 BFC - 3' 413.92 264.32 28 1st 160,000 gals Gallonage / MG 2.22 3.20 29 over 160,000 gals 3.20 30 BFC - 4" 646.75 413.00 31 1 at 250,000 gals Gallonage / MG 2.22 3.20 32 over 250.000 gals 3.20 33 BFC - 6" 1,293.50 826.00 34 tat 500,000 gals Gallonage / MG 2.22 3.20 35 over 500,000 gals 3.20 Revenue Schedule at Company and Staff Proposed Rates- Water City of Sebastian Company: GDU / Sebastian Highlands Schedule: 1-2W Page 1 of 1 Test Year Ended: December E1, 1991 Staff Adjusted Preparer: Rachlin 8 Cohen, CPA's Explanation: Provide a calculation of revenues at company and sniff proposed rates using the billing analysis. (1) (2) (3) Lim (o) Number # Class / Meier Size Bills Company 1 Residential Consumption 2 BFC - 5/8' x 3/4' 13,132 3 1st 10,000 gals In MG 4 over 10,000 gals Proposed Rates 5 Total Residential 13,132 6 Commercial 991 7 BFC - 5/8' x 3/4' 420 8 1x110,000 gals 133 9 over 10,000 gals 2D5.88 10 SFC - 1' 27 11 1st 25,000 gals 3.20 12 over 25,000 gals 380 13 BFC - 1' 12 14 1st 50,000 gals 3,172 15 over 50,000 gals 3.20 16 BFC - 2' 12 17 1st 80,000 gals 18 over 80,000 gals 19 BFC - 3' 12 20 1st 160,000 gals 21 over 160,000 gals (4) (5) (6) (7) (e) (o) (t1) 3.20 Company 2.22 Company SUN Siff Consumption Proposed Conservation Revenues at Proposed Revenues at In MG Rete Consum tp lon Proposed Rates Rate Proposed Rates 61,599 6.553 68,152 1,413 727 216 0 325 80 758 171 883 0 22 Total Commerclai 483 4,55 $25.87 2.12 tat 8,000 Galls 3.18 Over 8,000 Galls $339,725 57,927 122,805 8,625 27,428 $489,958 $16.52 $216,941 3.20 185,368 3.73 32,154 $434,461 $25.87 $10,865 $16.52 $6,938 2.22 3,137 3.20 4,522 2.22 1,814 3.20 2,328 84.88 1,746 41.30 1,115 2.22 480 3.20 691 2.22 0 3.20 0 129.35 1,552 82.80 991 2.22 722 3.20 1,040 2.22 133 3.20 192 2D5.88 2,484 132.16 1,586 2.22 1,683 3.20 2,426 2.22 380 3.20 547 413.92 4,967 264.32 3,172 2.22 1,900 3.20 2,826 2.22 0 3.20 0 23 Multiple Service 24 BFC - 6' 36 $1,293.50 25 1st 500,000 gals 12,344 2.22 26 over 500,000 gals 1,344 222 27 Total Multiple Servioe 36 13,688 28 Total Metered Revenue 13 851 88 393 $31,722 $28,372 $46,566 $826.00 $29,736 27,404 3.20 39,501 2,964 3.20 4,301 $76,953 $73,538 $Sgg 833 $536 371 I N N 1 Rete Development Schedule- Water Company: GDU / Sebastian Highlands Test Year Ended: December 31, 1991 Staff Adjusted Explanation: Provide a schedule calculating the basis for BFC and gallonage charge. City of Sebastian Schedule: I -SW Page 1 of 1 Preparer: Rachlin & Cohen, CPA's - (1) (2) (3) (4) (5) (6) fn (6) (9) Factored Factored Line Required Percent Assigned ERC's 15,768 Galls 86,393 No. Acct. # DESCRIPTION Revenue BFC Gallonage Base Cost i/ Mo. Gel. Cost I/ MG. 1 303 PAYROLL INSURANCE $6,967 75.00% 25.00% $5,225 0.33 $1.742 0.02 2 304 GROUP INSURANCE 6,498 75.00% 25.00% 4,874 0.31 1,625 0.02 3 COMPENSATED ABSFENCES (1,668) 75.00% 25.00% (1,251) (0.08) (417) (0.00) 4 321 PUBLIC RELATIONS 72 50.00% 50.00% 36 0.00 36 0.00 5 623 FUEL'O7P POWER PURCHASED 15,374 0.00% 100.00% 0 0.00 15,374 0.18 6 626 PUMPING LABOR 0 75.00% 25.00% 0 0.00 0 0.00 7 633 CONTACTUAL SERVICES - LEGAL 111 50.00% 50.00% 56 0.00 56 0.00 8 641 TREATMENT -CHEMICALS - - 7,120 50.00% 50.00% 3,560 0.23 3,560 0.04 9 642 TREATMENT - LABOR 37,351 75.00% 25.00% 28,013 1.78 9,338 0.11 10 643 TREATMENT - EXPENSE 10,122 50.00% 50.00% 51061 0.32 5,061 0.06 11 902 METER READING - LABOR 2,252 75.00% 25.00% 1,689 0.11 563 0.01 12 903 CUSTOMER ACCOUNTING - LABOR 6,574 75.00% 25.00% 4,931 0.31 1,644 0.02 13 904 UNCOLLECTIBLE ACCOUNTS 2,892 50.00% 50.00% 1,446 0.09 1,446 0.02 14 905 CUSTOMER ACCOUNTING EXPENSE 4,006 50.00% 50.00% 2,003 0.13 2,OD3 0.02 15 920 A & G LABOR 11,616 75.00% 25.00% 8,712 0.55 2,904 0.03 16 921 A & G EXPENSE 4,323 50.00% 50.00% 2,162 0.14 2,162 0.03 17 923 MANAGEMENT FEES 10,340 75.00% 25.00% 7,755 0.49 2,585 0.03 18 924 PROPERTY INSURANCE 14,536 100.00% 0.00% 14,536 0.92 0 0.00 19 928 REGULATORY COMMISSION EXPENSE 9,415 100.00% 0.00% 9,415 0.60 0 0.00 20 930 MISCELLANEOUS GENERAL EXPENSE 375 50.00% 50.00% 188 0.01 188 0.00 21 933 TRANSPORTATION EXPENSES 1,404 75.00% 25.00% 1,053 0.07 351 0.00 22 934 PENSION EXPENSE 0 75.00% 25.00% 0 0.00 0 0.00 23 650 MAINTENANCE OFTREATMENT PLANT - LABOR 5,728 75.00% 25.00% 4,296 0.27 1,432 0.02 24 652 MAINTENANCE OFTREATMENT PLANT - EXPENSE 17,757 50.00% 50.00% 8,879 0.56 8,879 0.10 25 670 MAINTENANCE OF MAINS - LABOR 557 75.00% 25.00% 418 0.03 139 0.00 26 674 MAINTENANCE OF MAINS - EXPENSE 18 50.00% 50.00% 9 0.00 9 0.00 27 676 MAINTENANCE OF METERS - EXPENSE 2,708 50.00% 50.00% 1,354 0.09 1,354 0.02 28 677 MAINTENANCE OF HYDRANTS - EXPENSE 417 50.00% 50.00% 209 0.01 209 0.00 29 680 MAINTENANCE OF SERVICES - LABOR 319 75.DD% 25.00% 239 0.02 80 0.00 30 681 MAINTENANCE OF METERS - LABOR 345 75.00% 25.DD% 259 0.02 86 0.00 31 682 MAINTENANCE OF HYDRANTS - LABOR 92 75.00% 25.00% 69 0.00 23 0.00 32 403 DEPRECIATION, NET OF CIAC AMORT. 89,238 100.00% 0.00% 89,238 5.66 0 0.00 33 TAXES OTHER THAN INCOME: 34 302 PAYROLLTAX 4,574 75.00% 25,00% 3,431 0.22 1,144 0.01 35 006 PROPERTY TAX 55,084 100.00% 0.00% 55,084 3.49 0 0.00 36 009 FRANCHISETAX 0 50.00% 50.00% 0 0.00 0 0.00 37 PROVISION FOR INCOME TAXES 73,971 0.0096 100.00% 0 0.00 73,971 0.86 38 NET INCOME 138,663 0.00% 100.00% 0 0.00 138.663 1.61 39 TOTAL REVENUE REQUIREMENT $539,151 $262,945 $16.68 $276,206 $3.20 40 LESS: OTHER REVENUES 2,428 100.00% 0.00% 2,428 0.15 0 0.00 41 SUB -TOTAL REVENUES FOR FATE SETTING 536,723 260,517 16.52 276,206 3.20 42 43 REVENUES FOR COMPANY RATES $536,723 l $260.517 $16.52 $278.208 $3.20 Development of Customer Deposits Company: GDu/sebastian Highlands Test Year Ended: December 31, 1991 --- (1) Claes/Meter size Customer Deposits - Nater Residential 5/e" x 3/4" let 8,000 gale over 8,000 gale Over 5/8 x 3/4" General service (Commercial) 5/s" x 3/4" let 8,000 gale Nover 8,000 gale W 1 Over 5/8 x 3/4" C r 0 2 months estimated billing 420 25.87 25.87 10,865 $49.41 4,453 2.22 9,886 29 -Apr -93 $100.00 $50.00 2 months estimated billing Exhibit I Schedule: I -8N Page 1 of 1 Preparers Deborah D. Swain __________________ (2) (3) (4) __________________________________ () (6) (7) (8) (9) Projected Proposed Projected Proposed Proposed Average Proposed Present Customer I Bills Rates Consumption Rates Revenues Bill Customer Deposita (2) x (3)♦ (6)/(2) Deposits ___________ BPC __________ ___________ Gallonage _________ (4) x (5) _____________ _________ (7) x 2 Mo. ______________ __________. 13,132 25.87 339,725 $37.31 $75.00 $50.00 57,927 2.12 122,005 8,625 3.18 27,428 2 months estimated billing 420 25.87 25.87 10,865 $49.41 4,453 2.22 9,886 29 -Apr -93 $100.00 $50.00 2 months estimated billing Development of Customer Deposits - Water Company: GDU / Sebastian Highlands Test Year Ended: December 31, 1991 (1) (2) Class / Meter Size Projected # Bills Residential (6) BFC - 5/6'x 3/4" 13,132 1 st 8,000 gals over 8,000 gals Over 5/8" x 3/4" General Service (Commercial) BFC - 5/8" x 3/4" 420 1 st 8,000 gals Staff over 8,000 gals Staff Over 5/8" x 3/4" Staff City of Sebastian - Schedule 1-8W Page 1 of 1 Preparer: Rachfln 6 Cohen, CPA's (3) (4) (5) (6) Cn (6) (9) Proposed Proposed Proposed Proposed Staff Staff Present Staff Projected Staff Revenues Average Customer Customer Rates Consumption Rates (2) x (3) + Bill Deposits Deposits BFC Gallons (4) x 5 _ (6)/(2) (7) x 2 Mo. (3 Months) $16.52 $216,941 533.09 $66.00 $50.00 57,927 $3.20 185,366 8,625 3.73 32,171 2 months estimated billing $16.52 $6,938 $50.45 $100.00 $50.00 4,453 3.20 14,250 3.20 2 months estimated billing Schedule of Company and Staff Proposed Rates— Sewer Company: GDU / Sebastian Highlands Test Year Ended: December 31, 1991 City of Sebastian Schedule 1-1 S Page 1 of 1 Preparer: Rachlin & Cohen, CPA's Explanation: Provide a calculation of revenues at company and staff proposed rates using the billing analysis. (1) (2) (3) (4) Proposed Proposed Line Company Staff # Class / Meter Size Rates Rates 1 Residential 2 Base Facility Charge (BFC) $24.35 $22.00 3 Plus Gallonage per MG 4.33 * 4.37 ** 4 General Service (Commercial & MuRlple Service 5 Base Facility Charge (BFC) 6 5/8" x 3/4" 24.35 22.00 7 1" 60.88 55.00 8 1 1/2" 121.75 110.00 9 2" 194.80 176.00 10 3" 389.60 352.00 11 4" 608.75 550.00 12 6" 1,217.50 1,100.00 13 Plus Gallonage Charge per MG 5.19 5.24 * Maximum of 12,000 gals ** Maximum of 8,000 gals. Revenue Schedule at Company and Staff Proposed Rates— Sewer City of Sebastian Company: GDU / Sebastian Highlands Schedule: 1-25 Page 1 of 1 Test Year Ended: December 31, 1991 Staff Adjusted Preparer: Rachlin d Cohen, CPA's Explanation: Provide a calculation of revenues at compary and staff proposed rates using the billing analysis. (1) (2) (3) Line 10 Number f Class / Meter Size Bills 1 Residential to 2 All Sizes: Proposed 3 Base Facility Charge 6,644 4 Gallonage Under 12,808 In MG 5 Gallonage Over 12,000 8 MG Cap_ e Rate Proposed Rates 7 Total Residential 8,844 8 Commercial 9 Base Facility Charge 10 5/8'x3/4' 11 3- 12 I 13 Gallonage to Staff M Proposed 1 14 Totes Commercial 36 12 (4) (5) (6) (7) (8) (9) (10) Company Company Staff Staff Consumption Proposed Residential Revenues at Proposed Revenuse at In MG Rate 8 MG Cap_ Proposed Rates Rate Proposed Rates $24.35 $161,781 $22.00 $146,188 32,486 4.33 Gels max 8,000 29,736 128,757 4.37 129,946 1,457 Gals over 8,000 4,207 0 33,943 $290,538 $276,114 74 $24.35 $877 $22.00 $792 883 389.60 4,675 352.00 4,224 957 48 957 15 Total Metered Revenue 8.892 34.900 5.19 4,987 $10,519 5.24 5,015 $10,031 Rate Development Schedule- Sewer Company: GDU / Sebastian Highlands Test Yew Ended: December 31, 1991 Staff Adjusted Explanation: Provide a schedule calculating the basis for BFC and gallonage charge. City of Sebastian Schedule: I -SS Page 1 of 1 Preparer: Rachlin 6 Cohen, CPA's , (1) (2) (3) (4) (5) (6) (7) (8) (9) Factored Factored Line Required Percent Assigned ERC's 6,672 Galls 50,699 No. Acct. # DESCRIPTION Revenue BFC Gallonage Base Cost S/ Mo. Gal. Cost S/ MG. 1 303 PAYROLL INSURANCE $4.461 75.00% 25.00% $3,346 $0.49 $1,115 $0.04 2 304 GROUP INSURANCE COMPENSATED ABSCENCES 4,160 75.00% 25.00% 3,120 0.45 1,040 0.03 3 290 COMPENSATED ABSCENCES (834) 75.00% 25.00% (626) (0.09) (209) (0.01) 4 623 FUELOF POWER PURPHASED 25,050 0.00% 100.00% 0 0.00 25,050 0.82 5 624 PUMPING LABOR 1,840 75.00% 25.00% 1,380 0.20 460 0.01 6 641 TREATMENT - CHEMICALS 2,812 50.00% 50.00% 1,406 0.20 1,406 0.05 7 642 TREATMENT- LABOR 23,587 75.00% 25.00% 17,690 2.57 5,897 0.19 8 643 TREATMENT - EXPENSE 8,322 50.00% 50.00% 4,161 0.61 4,161 0.14 9 903 CUSTOMER ACCOUNTING- LABOR 3,421 75.00% 25.00% 2,566 0.37 855 0.03 10 904 UNCOLLECTIBLE ACCOUNTS 2,465 50.00% 50.00% 1,233 0.18 1,233 0.04 11 905 CUSTOMER ACCOUNTING EXPENSE 1,962 50.00% 50.00% 981 0.14 981 0.03 12 920 A & G LABOR 8,111 75.00% 25.00% 6,083 0.89 2,028 0.07 13 921 A & G EXPENSE 3,565 50.00% 50.00% 1,783 0.26 1,783 0.06 14 923 MANAGEMENT FEES 5,144 75,00% 25.00% 3,858 0.56 1,286 0.04 15 924 PROPERTY INSURANCE 7,061 100.00% 0.00% 7,061 1.03 0 0.00 16 928 REGULATORY COMMISSION EXPENSE 4,316 100.00% 0.00% 4,316 0.63 0 0.00 17 930 MISCELLANEOUS GENERAL EXPENSE 54 50.00% 50.00% 27 0.00 27 0.00 18 933 TRANSPORTATION EXPENSES 687 75.00% 25.00% 515 0.07 172 0.01 19 934 PENSION EXPENSE 0 75.00% 25.00% 0 0.00 0 0.00 20 MAINTENANCE: 21 611 MAINTENANCE SOURCE OF SUPPLY 215 50.00% 50.00% 108 0.02 108 0.00 22 630 MAINTENANCE OF PUMP / LIFT STATION LABOR 2,012 75.00% 25.00% 1,509 0.22 503 0.02 23 633 MAINTENANCE OF PUMP / LIFT STATION EXPENSE 1,650 50.00% 50.00% 825 0.12 825 0.03 24 650 MAINTENANCE OF TREATMENT PLANT - LABOR 2,381 75.00% 25.00% 1,786 0.26 595 0.02 25 652 MAINTENANCE OF TREATMENT PLANT - EXPENSE 6,425 50.00% 50.00% 3,213 0.47 3,213 0.10 26 403 DEPRECIATION, NET OF CIAC AMORT. 36,997 100.00% 0.00% 36,997 5.38 0 0.00 27 TAXES OTHER THAN INCOME: 28 302 PAYROLLTAX 3,107 75.00% 25,00% 2,330 0.34 777 0.03 29 006 PROPERTYTAX 45,527 100.00% 0.00% 45,527 6.63 0 0.00 30 009 FRANCHISETAX 0 50.00% 50.00% 0 0.00 0 0.00 31 PROVISION FOR INCOME TAXES 29,044 0.00% 100.00% 0 0.00 29,044 0.95 32 NET INCOME 52 443 0.00% 100,00% 0 0.00 52,443 1.71 33 TOTAL REVENUE REQUIREMENT 285,985 151,194 22.00 134,791 4.39 34 LESS: OTHER REVENUES 0 100.00% 0.00% 0 0.00 0 0.00 35 REVENUES FOR COMPANY RATES __285.985 $151.194 ___122.00 $134791 _____$439 36 SEWER RATE WITH WATER CONSERVATION 37 RESIDENTIAL GALS = $ 29,736 X.80 = 23,789 $ 5.46 X 80% = $4.37 38 GEN SERVICE GALS = 957 X.96 = 919 S 5.46 X 96% = $5.24 39 24,708 40 $134,791/24.708 = $5.46 1 +1 4 m 1 P m O m S 7 m uo 1 1 tl 1 « ^. 1 a° e v �x W wo W U 0 i o y ° 1 m H rl C 1 1 i � � 1 V>mlo n rnm K U e 4 I IC •' W fO d d I O P C Q o O 1 ♦ ^. 1 e W 9 ° y i W OLS 1 � i 1 1 m I e P i m m e N c N t 1 N O Ma V O 1 0 1 O 6 r-1 I O � i p E • H 1 v1� i O N I I V U e O I Z 3 ^ N i au° I I 1 N I I 9 m N O4 C o m ._. O e m Q 1 W 1 1 1 I 9 1 m 1 V U ti 1 m'1 0 m I O N 1 4 1 a� I 1 1 1 1 1 1 I I i I I N 1 P 1 a i m pm G. t wl i N O 0 m M l m m •J m U O 1 m •' m .-I p � vl C 1 O m 4 I d T a 1 m 1 O C T 1 m 6 4 I 1 p U F 1 O P C Q o O e e W 9 ° y .~i O M u P e N c N t M d 0 � 8 E • � ^ n N r �� 3 ^ N ml '� n 'm n ^ O '^ N cptz 000035 n e e W .~i u e Y U 4 0 � U Y � H n m ^ m N C o m c VW cptz 000035 Development of Customer Deposits — Sewer City of Sebastian Company: GDU / Sebastian Highlands Schedule 1-7S Test Year Ended: December 31, 1991 Page 1 of 1 Preparer: Rachlin 6 Cohen, CPA's (t) (2) (3) (4) (5) (6) (7) (6) (8) Proposed Proposed Proposed Proposed Staff Staff Present Projected Staff Projected Staff Revenues Average Customer Customer Class / Molar Size ! Rates Consumption Rates (2) x (3) + Bill Deposits Deposits Bills BFC Gallonage (4) x (5) (6)/(2) (7) x 2 Mo. (3 Months) Residential 5/8'x3/4" 6,644 $22.00 29,736 $4.37 $276,114 $41.56 $83.00 $30.00 / Over 5/8' x 3/4' 5� �--�2 months estimated billing O rd �-Y General Service (Commercial 6 Multi—Family) 5/8'x3/4' 38 $22.00 74 $5.24 $11180 $32.77 $66.00 $25.00 Over 5/8' x 3/4' 2 months estimated billing Carrying Cost Recovery Charge Schedule of Charges Water Treatment Plant Company: GDU / Sebastian Highlands Test Year Ended 12/31/91 Company Proposed Exhibit VI Schedule V -1W Page 1 of 5 Preparer: Rachlin & Cohen CPA's Staff Adjusted 1Vw 1991 1992 1993 1994 1995 & After January 9.80 127.65 249.23 378.44 515.87 649.27 February 19.59 137.73 259.94 389.83 527.99 649.27 March 29.39 147.81 270.65 401.23 540.12 649.27 April 39.19 157.89 281.36 412.61 552.25 649.27 May 48.99 167.97 292.07 424.00 564.38 649.27 June 58.78 178.05 302.78 435.39 576.50 649.27 July 68.58 188.13 313.49 446.76 588.63 649.27 August 78.38 198.21 324.20 456.17 600.76 649.27 September 88.17 208.29 334.91 469.56 612.89 649.27 October 97.97 218.36 345.62 480.96 625.02 649.27 November 107.77 228.44 356.33 492.35 637.14 649.27 Carrying Cost One Year December 117.57 238.52 367.04 503.74 649.27 649.27 Staff Adjusted 19w 1991 1992 1993 1994 1995 & After January 13.64 177.73 347.99 529.76 724.05 913.51 February 27.27 191.84 363.05 545.86 741.28 913.51 March 40.91 205.95 378.11 561.95 758.50 913.51 April 54.54 220.06 393.17 578.05 775.72 913.51 May 68.18 234.17 408.23 594.15 792.95 913.51 June 81.81 248.28 423.30 610.25 810.17 913.51 July 95.45 262.38 438.36 626.34 827.39 913.51 August 109.08 276.49 453.42 642.44 844.62 913.51 September 122.72 290.60 468.48 658.54 861.84 913.51 October 136.35 304.71 483.54 674.63 879.06 913.51 November 149.99 318.82 498.60 690.73 896.29 913.51 Carrying Cost One Year December 163.62 332.93 513.66 706.83 913.51 913.51 Carrying Cost Recovery Charge Schedule of Charges._, Water Distribution(Plant) Company: GDU / Sebastian Highlands Test Year Ended 12/31/91 Company Proposed Exhibit VI Schedule V-1 W Page 1 of 5 Preparer: Rachlin & Cohen CPA's 1996 1991 1992 1993 1994 1995 & After January 3.16 41.25 81.40 124.40 170.50 215.55 February 6.32 44.58 84.96 128.22 174.60 215.55 March 9.48 47.90 88.52 132.04 178.69 215.55 April 12.64 51.23 92.09 135.86 182.79 215.55 May 15.60 54.55 95.65 139.68 186.88 215.55 June 18.96 57.88 99.21 143.50 190.98 215.55 July 22.12 61.21 102.77 147.31 195.07 215.55 August 25.28 64.53 106.34 151.13 199.17 215.55 September 28.44 67.86 109.90 154.95 203.26 215.55 October 31.60 71.18 113.46 158.77 207.36 215.55 November 34.76 74.51 117.02 162.59 211.45 215.55 w Carrying Cost One Year December 37.92 77.84 120.59 166.41 215.55 215.55 Ctaff Adjusted 1998 1991 1992 1993 1994 1995 & After January 3.31 43.24 85.48 130.94 179.87 227.85 February 6.62 46.74 89.25 134.99 184.23 227.85 March 9.93 50.23 93.01 139.04 188.59 227.85 April 13.25 53.73 96.78 143.10 192.96 227.85 May 16.56 57.23 100.54 147.15 197.32 227.85 June 19.87 60.73 104.30 151.20 201.68 227.85 July 23.18 64.23 108.07 155.25 206.04 227.85 August 26.49 67.73 111.63 159.30 210.40 227.85 September 29.80 71.22 115.60 163.35 214.76 227.85 October 33.12 74.72 119.36 167.41 219.13 227.85 November 36.43 78.22 123.12 171.46 223.49 227.85 Carrying Cost One Year December 39.74 81.72 126.89 175.51 227.85 227.85 Carrying Cost Recovery Charge Exhibit VI Calculation of Carrying Cost Per ERC Per Year: Schedule V -2S Wastewater Treatment Plant S�ye,�,,, ��+� Page 1 of 5 Company: GDU / Sebastian Highlands Preparer: Rachlin $ Cohen CPA's Test Year Ended 12/31/91 Company Proposed Staff Adjusted 1991 1992 1993 1994 1995 1996 1991 1992 1993 1994 1995 6 After January 9.03 117.78 230.75 351.11 479.47 604.34 February 18.07 127.14 240.72 361.75 490.82 604.34 March 27.10 136.50 250.70 372.39 502.17 604.34 April 36.14 145.86 260.67 383.02 513.52 604.34 May 45.17 155.22 270.65 393.66 524.87 604.34 June 54.21 164.59 280.62 404.29 536.23 604.34 July 63.24 173.95 290.60 414.93 547.58 604.34 August 72.27 183.31 300.58 425.57 558.93 604.34 September 81.31 192.68 310.55 436.20 570.28 604.34 October 90.34 202.05 320.53 446.84 581.63 604.34 November 99.38 211.41 330.50 457.48 592.98 604.34 Carrying Cost One Year December 108.41 220.77 340.48 468.11 604.34 604.34 Staff Adjusted 1991 1992 1993 1994 1995 & After January 9.43 123.00 241.46 367.34 494.71 636.38 February 18.87 132.82 251.96 377.75 507.59 636.38 March 28.30 142.63 262.45 388.16 520.47 636.38 April 37.73 152.45 272.95 398.56 533.35 636.38 May 47.16 162.26 263.45 408.97 546.23 636.38 June 56.59 172.08 293.95 419.38 559.11 636.38 July 66.03 181.89 304.44 429.79 571.98 636.38 August 75.46 191.70 314.94 440.20 584.86 636.38 September 84.89 201.52 325.44 450.61 597.74 636.38 October 94.33 211.33 335.94 461.01 610.62 636.38 November 103.76 221.15 346.43 471.42 623.50 636.38 Carrying Cost One Year December 113.19 230.96 356.93 481.63 636.38 636.38 Carrying Cost Recovery Charge Calculation of Carrying Cot Per ERC Per Year: Wastewater Collection la Susi-a 9-.-S 's Company: GDU / Sebastian Highlands Test Year Ended 12/31/91 Company Proposed Exhibit VI Schedule V -2S Page 1 of 5 Preparer: Rachlin & Cohen CPA's Staff Adjusted 1996 1991 1992 1993 1994 1995 & After January 15.72 205.12 404.73 618.54 847.70 1,071.62 February February 31.43 221.66 422.44 637.52 868.06 1,071.62 49.41 March 47.15 238.19 440.15 656.50 888.42 1,071.62 267.36 April 62.86 254.73 457.87 675.49 908.77 1,071.62 500.49 May 78.58 271.26 475.58 694.47 929.13 1,071.62 752.73 June 94.29 287.80 493.29 713.45 949.49 1,071.62 1,025.86 July 110.01 304.33 511.00 732.43 969.84 1,071.62 1,134.49 August 125.73 320.87 528.71 751.42 990.20 1,071.62 October September 141.44 337.41 546.42 770.40 1,010.56 1,071.62 181.18 October 157.16 353.95 564.13 789.38 1,030.91 1,071.62 406.77 November 172.87 370.48 581.84 808.36 1,051.27 1,071.62 Carrying Cost One Year December 188.59 387.02 599.55 827.34 1,071.62 1,071.62 Staff Adjusted 1996 1991 1992 1993 1994 1995 & After January 16.47 215.08 425.51 651.86 895.50 1,134.49 February 32.94 232.50 444.26 672.04 917.22 1,134.49 March 49.41 249.93 463.00 692.21 938.95 1,134.49 April 65.88 267.36 481.74 712.38 960.68 1,134.49 May 82.35 284.78 500.49 732.56 982.40 1,134.49 June 98.82 302.21 519.23 752.73 1,004.13 1,134.49 July 115.30 319.64 537.97 772.90 1,025.86 1,134.49 August 131.77 337.06 556.72 793.08 1,047.58 1,134.49 September 148.24 354.49 575.46 813.25 1,069.31 1,134.49 October 164.71 371.92 594.20 833.42 1,091.04 1,134.49 November 181.18 389.34 612.95 853.60 1,112.76 1,134.49 Carrying Cost One Year December 197.65 406.77 631.69 873.77 1,134.49 1,134.49 -34- 000115 v C N I N U N O a N iD In co 0000 U H N r 0 0 0 0 0 .-. W N O N O O N V1 If1 IO n . a r m a vm y G 0 M r 0 U m a a e a O U r O1 0 r C C � M • O O U 900 0000 Q •mr00000 C G .Ti O I 6 » V w� P n✓ n h P m 4 L r w w rtU � 4 L 9 • • m O.L U X U Y N � � nr- o000 y • oe onno c —mPr m a n u 9 • T m r U m > m y P y m m Y L 9 9 U m 0 r ✓ O0. y m 0 • ~ Y a r m a y P n C m 4 a n m s � ✓ y U t e a e • 0 0 r m o v 4 d C N � P O 1 V u M _ P • e w 0 0 6 .•r "r m .. .0.1 y y p m I• • Y O • 6 M m' m ma r • Vu L E mlu • Y 'J m C VC 9 9 U m I✓ •m ti O r C c� m. L Y O L I C U U e e O I W O b 0 0 00 01 V • M 0" m O 9 G O I I C O C 0 O pn. p M 0 9 S U P P X m ry 'C' 0 m W ✓ X m• y 0 M N O O O m m 4 m m N Y• ~ I I C L W a W Y • In ti w O O M I 0 N Y • Tm • U q m 3 p O C Y 6✓ 0 C S 6 YIVr mP�.l�n 6 N n- m u F -34- 000115 Schedule of Present and Proposed Service Availability Chargee - Sever Exhibit VI Schedule: VI -1S Company: GDU/Sebastian Highlands Preparer: Deborah D. Swain Test Year Ended: December 31. 1991 Explanatioot Provide a schedule of present and proposed service availability chargee. ) (S) 1 ( ) Present l I Proposed 9upportln Staff Charges Charges Schedules Recommended Type Charge _________ _________ _________ ____________________________________ Connection (Plant Capacity) Charge $2.45 $3.10 VI -33 $3.10 Per GPD Main Extension and Sever Laterals $12.46 $13.48 VI -23 $13.48 Par loot measured along front of property served. $0.88 Reserve Capacity $0.53 $0.74 VI -43 Per gallon/year $0.0441 $0.0619 VI -4S $0.0733 Per gallon/month EXAMPLE: Sebastian Highlands Customer Bill at 3,000, 5,000 b 7,000 Gallons 3,000 Gallons 3,000 Gallons 5,000 Gallons 5,000 Gallons 7,000 Gallons 7,000 Gallons Water Base Facility Charge Staff (�IDO Company Staff GSL] Company Gallonage Charge (3 x $2.12) Staff w m i $32.23 &D q Company Sebastian Highlands Customer Bill at 3,000, 5,000 b 7,000 Gallons 3,000 Gallons 3,000 Gallons 5,000 Gallons 5,000 Gallons 7,000 Gallons 7,000 Gallons Water Base Facility Charge $16.52 Gallonage Charge (3 x $3.20) 9.60 $26.12 Base Facility Charge $25.87 Gallonage Charge (3 x $2.12) 6.36 $32.23 Base Facility Charge $16.52 Gallonage Charge (5 x $3.20) 16.00 $32.52 Base Facility Charge $25.87 Gallonage Charge (5 x $2.12) 10.60 $36.47 Base Facility Charge $16.52 Gallonage Charge (7 x $3.20) 22.40 $38.92 Base Facility Charge $25.87 Gallonage Charge (7 x $2.12) 14.84 $40.71 Sawer Base Facility Charge $22.00 Gallonage Charge (3 x $4.37) 13.11 $35.11 Base Facility Charge $24.35 Gallonage Charge (3 x $4.33) 12.99 $37.34 Base Facility Charge $22.00 Gallonage Charge (5x$4.37) 21.85 $43.85 Base Facility Charge $24.35 Gallonage Charge (5 x $4.33) 21.65 $46.00 Base Facility Charge $22.00 Gallonage Charge (7x$4.37) 30.59 $52.59 Base Facility Charge $24.35 Gallonage Charge (7 x $4.33) 30.31 $54.66 Total 561223 569157 TYPICAL BILL COMPARISON AS OF MAY, 1993 SINGLE-FAMILY RESIDENTIAL WATER CURRENT WATER RATES F.P.U.A. Inside City Limits Outside City Limits INDIAN RIVER COUNTY MARTIN COUNTY North System Martin Downs Port Salerno VERO BEACH (CITY OF) Inside City Limits Outside City Limits ST. LUCIE COUNTY(PSL) -37- 5,000 BASE FACILITY CHARGE GALLONAGE RATE GALLON BILL $ 9.20 (a) 4 to 10,000 - $1.46 $12.12 11 to 15,000 - $1.86 over 15,000 - $2.19 $11.50 (a) 4 to 10,000 - $1.83 $15.16 11 to 15,000 - $2.28 Over 15,000 - $2.74 $11.20 (b) 0 to 3,000 - $1.75 $20.75 3 to 7,000 - $2.15 Over 7,000 - $2.55 Excess -Over 13,000 - $2.30 $11.00 (b) 0 to 10,000 - $2.02 $21.10 11 to 15,000 - $2.53 Over 15,000 - $3.03 $15.89 (b) $2.44 per 1,000 $28.09 $11.00 (b) 0 to 10,000 - $0.92 $15.60 11 to 15,000 - $1.07 Excess -Over 15,000 - $1.28 $ 9.30 (a) Over 3 up to 30,000 - $1.60 $12.50 30,000 to 50,000 - $3.20 Over 50,000 - $4.00 $10.23 (a) Over 3 up to 30,000 - $1.76 $13.75 30,000 to 50,000 - $3.52 Over 50,000 - $4.40 $ 4.67 (b) $2.37 per 1,000 $16.52 -37- F.P.U.A. Inside City Limits Outside City Limits INDIAN RIVER COUNTY MARTIN COUNTY North System Martin Downs Port Salerno VERO BEACH (CITY OF) Inside City Limits Outside City Limits ST. LUCIE COUNTY (PSL) SEWER t3F-r— $ 5.60 (b) $ 7.00 (b) $15.50 (b) $15.00 (b) $16.77 (b) $ 8.80 (b) $2.31 per 1,000 (c) $2.89`per 1,000 (c) ---3.55per 1,000 c $3.15 per 1,000 (c) $3.44 per 1,000 (c) $2.45 per 1,000 (c) $15.80 (a) $2.55 per 1,000 over 3 (c) $17.40 (a) $2.80 per 1,000 over 3 (c) $10.26 (b) $4.99 per 1,000 (d) FOOTNOTES: (a) Base Facility Charge includes up to 3,000 gallons usage. (b) Base Facility Charge includes no gallonage allowance. (c) Gallonage rate is capped at 10,000 gallons usage. (d) Gallonage rate is capped at 6,000 gallons usage. W $17.15 $21.45 $�6 32. ZS $30.75 $33.97 $21.05 $20.90 $23.00 $35.21 COMBINED F.P.U.A. Inside City Limits $29.27 Outside City Limits $36.61 INDIAN RIVER COUNTY $50.50 MARTIN COUNTY North System $51.85 Martin Downs $62.06 Port Salerno $36.65 VERO BEACH (CITY OF Inside City Limits $33.40 Outside City Limits $36.75 ST. LUCIE COUNTY (PSL) $51.73 e�nU Now ) a 39..'12 G DO - QA -CK ,,Q LCID"C*J 19G. 37 -39-