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Home My WebLink About1988 10 31 - Rate Increase ApplicationRATE INCREASE APPLICATION SEBASTIAN LAKES UTILITY COMPANY TEN MONTHS ENDED OCTOBER 31, 1988 (ANNUALIZED) SEE ACCOUNTANT'S REPORT RACHLIN & COHEN CERTIFIED PUBLIC ACCOUNTANTS A Panneccdip of Professional As cinrioru SEBASTIAN LAKES UTILITY COMPANY RATE INCREASE APPLICATION TEN MONTHS ENDED OCTOBER 31, 199B (ANNUALIZED) SEE ACCOUNTANT'S REPORT PAGE ACCOUNTANT'S REPORT OPERATING EXPENSES 2 REVENUE REQUIREMENTS 3 RATE COMPARISON ;-5 RATE TARIFF 6 PRESENT AND PROPOSED IMPACT CHARGES 7 RACHLIN & COHEN CERTIFIED PUBLIC ACCOUNTANTS A Partnership of Professional Associations Penthouse • 1320 South Dixie Highway • Coral Gables, Florida 33146-2964 • (305) 667-0412 (Dade) • (305)525-3608 (Broward) Fax: 305/665-7456 • Telex: 219744 ICC UR, Code No. 78-3 • Cable: CPAMIAMI Sebastian Lakes Utility Company Sebastian, Florida We have applied certain agreed-upon procedures, as discussed below, to the accounting records of Sebastian Lakes Utility Company for the ten months ended October 31, 1988, solely to assist you in connection with the filing of an application for rate increase with the City of Sebastian, Florida. It is understood that this report is intended solely for the filing with the City of Sebastian, Florida and is not intended for any other purpose. Our procedures were as follows: 1. We obtained, from management, the historical information required to prepare the enclosed schedules which were requested for filing by the City of Sebastian. 2. We prepared the enclosed schedules of operating expenses, revenue requirements, rate comparison, typical bill comparison, rate tariff and present and proposed impact charges based on the information we obtained from management. 3. We attended conferences with City of Sebastian officials regarding the requirements for the enclosed information. 4. We reviewed the Company's franchise agreement and corresponded with management and the Company's legal counsel regarding our recommended revisions. Because the above procedures do not constitute an examination made in accordance with generally accepted auditing standards, we do not express an opinion or any other form of assurance on the items referred to above. 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 adjusted. Had we performed additional procedures or had we made an examination of the financial statements in accordance with generally accepted auditing standards, 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 expand to any financial statement of the Sebastian Lakes Utility Company. Coral Gables, Florida January 4, 1989 Member of Summit International Associates. Inc. with Offices in Principal Cities Throughout the World Member of the American Institute of Certified Public Accountants Division for SEC Practice Section and the Private Companies Practice Section SEBASTIAN LAKES UTILITY COMPANY OPERATING EXPENSES TEN MONTHS ENDED OCTOBER 31, 1988 (ANNUALIZED) SEE ACCOUNTANTS' REPORT ACTUAL OPERATING EXPENSES PLUS 6.20% GDU RATE INCREASE LESS USED AND USEFUL ADJUSTMENTS: CONTRACTUAL SERVICES DEPRECIATION EXPENSE USED AND USEFUL ADJU57MENT ADJUSTED ACTUAL OPERATING EXPENSES ANNUALIZED OPERATING EXPENSES NATER SEWER f1�.324 (36,683 554 0 0 (12,000) 46,5591 111,319 115,093 n Z i CO`iBIRED $59.007 JJ4 (12,000) 423,088) $21,473 $28,631 SEBASTIAN LAKES UTILITY COMPAN% REVENUE REQUIREMENTS TEN MONTHS ENDED OCTOBER 31. 1988 (ANNUALIIED) SEE ACCOUNTANTS' REPORT In WATER SEWER COMBINED -------- --------- -------- NET OPERATING INCOME REQUIRED $1,215 63,232 $4,447 CURRENT OPERATING EXPENSES ANNUALIZED 15,093 13,538 28,631 SUBTOTAL REVENUE REQUIREMENT 16,308 16,770 33,078 RENEWAL AND REPLACEMENT FUND (2.5X) 408 419 827 FRANCHISE TAX 13.0X) 501 516 ------- 1,027 -------- TOTAL REVENUE REQUIREMENT -------- $11,211 -------- -------- $17,105 -------- -------- $34,922 -------- -------- BASE FACILITY REVENUE REQUIREMENTS $14,500 $15,000 $29,580 CONSUMPTION REVENUE REQUIREMENTS $2,637 -------- -------- $2,705 -------- -------- $5,342 -------- -------- 3 SEBASTIAN LAKES UTILITY COMPANY RATE COMPARISON TEN MONTHS ENDED OCTOBER 31, 1989 (ANNUALIZED) SEE ACCOUNTANTS' REPORT WATER: BASE FACILITY(0-3) BASE FACILITY (0) CONSUMPTION(3-UP) CONSUMPTION(I-UP) CONSUMPTION(0-10) CONSUMF'T10N(10-UP) SEWER: BASE FACILITY(0-3) BASE FACILITY (0) FLAT RATE CONSUMPTION(3-7500) CONSUMPTION(l-UP) TYPICAL BILL COMPARISON AT 5000 GALLONSIMONTH WATER: BASE FACILITY. CONSUMPTION TOTAL WATER SEWER: BASE FACILITY CONSUMPTION TOTAL SEWER TOTAL COMBINED CHARGES SEBASTIAN LAKES UTILITY COMPANY ------------------------------- PRESENT PROPOSED $9.1 1!6.88 1.60. 1.52 EENERAL DEVELOPMENT(CITY OF SEBASTIAN) PRIOR ----- PRESENT ------- PROPOSED -------- $3.10 411.64 f12.36 1.01 1.10 1.17 1.63 !.39 1.47 12.00 17.36 13.50 14.19 1i .00 1.40 1.56 0 95 1.00 $9.00 316.88 $3.10 411.64 $12.36 3.26 7.60 5.45 5.5; 5.B5 12.20 ------ 24.49 ------ 8.55 ------ 1).14 ------ 18.21 ------ 12.00 17.36 10.00 13.50 14.19 2.BO 7.80 0.00 4.75 5.00 ------ - - - 14.80 ------ 25.16 ------ 10.00 ------ 18.25 19.19 127.00 $49.64 $18.55 $35.39 $37.40 4 SEBASTIAN LAKES UTILITY COMPANY RATE COMPARISIDN TEN MONTHS ENDED OCTOBER 31, 1988 IANNUALIIED) SEE ACCOUNTANTS' REPORT SEBASTIAN LAKES UTILITY COMPANY GENERAL DEVELOPMENT(CITY OF SEBASTIAN) ----7-------------------------- -------------------------------------- PRESENT PROPOSED PRIOR PRESENT PROPOSED ------- -------- ----- ------- -------- TYPICAL BILL COMPARISON AT 3000 GALLONS/MONTH NATER: BASE FACILITY $9.00 $16.88 $3.10 $11.64 $12.36 I CONSUMPTION - 0.004. - 56 - 3.27 3.30 3.51 TOTAL NATER 9.00 ------ 21.44 ------ 6.37 ------ 14.94 ------ - 15.87 ------ SEWER: BASE FACILITY 12.00 17.36 10.00 13.50 14.19 CONSUMPTION 0.00 ------ 4.68 0.00 2.85 3.00 TOTAL SEWER 12.00 ------ 22.04 ------ 10.00 ------ 16.35 ------ 17.19 TOTAL COMBINED CHARGES $21.00 $43.49 $16.37 $31.29 $33.06 1: SEBASTIAN LAKES UTILITY COMPANY RATE TARIFF TEN MONTHS ENDED OCTOBER 31. 1988 (ANNUALIZED) SEE ACCOUNTANTS' REPORT WATER WATER METER BASE FACILITY GALLONAGE CUSTOMER CLASS SIZE CHARGE • CHARGE -------------- ----- ------------- --------- RESIDENTIAL 5/8' $27.00 $1.52 SEWER SEWER BASE FACILITY GALLONAGE CHARGE CHARGE $27.78 $1.56 COMMERCIAL 5/84 27.00 1.52 27.78 1.56 1' 67.50 1.52 69.45 1.56 1 1/21 135.00 1.52 138.90 1.56 2' 216.00 1.52 222.24 1.56 3' 432.00 1.52 444.48 1.56 4' 575.00 1.52 694.50 1.56 6' 1350.00 1.52 1389.00 1.56 MULTI- FAMILY BASE FACILITY CHARGE: (PER UNIT) DETERMINED BY DIVIDING BASE FACILITY CHARGE FOR METER SIZE OF BUILDING BY NUMBER OF UNITS IN BUILDING GALLONAGE CHARGE SAME AS RESIS,ENTIAL AND COMMERCIAL RATES OF COMPANY SHALL BE AUTOMATICALLY INCREASED OR DECREASED WITHOUT HEARING , UPON VERIFIED NOTICE TO THE CITY OF SEBASTIAN, THIRTY 130) DAYS PRIOR TO I79 1MPLEMEt:TATION OF THE INCREASE OR DECREASE THAT THE RATES CHARGED BY THE GOVERNMENTAL AGENCY OR DINER WATER AND/OR SEWER UTILITY THAT PROVIDE ALL Oft A PORTION OF THE UTILITY SERVICE TO THE COMPANY HAVE CHANGED. 6 SEBASTIAN LAKES UTIL71Y COMPANY PRESENT AND PROPOSED IMPACT CHARBES TEN MONTHS ENDED OCTOBER 31, 1988 (ANNUALIZED) SEE ACCOUNTANTS' REPORT PRESENT IMPACT FEE PLANT HELD FOR FUTURE USE NUMBER OF ERC'S REMAINING PROPOSED IMPACT FEE PER ERC f0 f1,U00 1132.972 303.62 $436 $1,000 7