The Usage Charge for the Sewer as a Utility
Operating Budget for Fiscal Year (FY) 2016-2017.
|Rate increase 2012 & 2017|
|Budget Narrative 2017-18|
|Why the increase?|
This is the budget that is approved for the time period July 1, 2016 through June 30, 2017. The largest share of income is from usage charges. The rate increased from $340 per year (set September 2009) to $380 per year beginning September 2012. See a page created to answer the question, "Why the increase?" The rate is held constant for this year.
There are other minor sources of income coming from late payers. Application fees are charged to properties for engineering, legal and inspection for a specific property that is new or improved on the sewer system.
|Current User Fee Income||$ 1,350,000|
|User Delinquent Interest||12,000|
|Total Revenues||$ 1,372,000|
|Contribution to Capital *||134,313|
|Total Expenses||$ 1,372,000|
As to expenses ...
- Personnel costs make up the largest share of total annual expenses. There are two office and two field personnel maintaining the Brookfield WPCA enterprise. The head count for the WPCA had remained the same for over 10 years, then increased with the addition of a part-time worker in 2015. This is due to increased office and field efficiencies over the years in spite of the fact the system has expanded more than 50% since 2009 with the completion of several projects. A large share of the personnel cost increase can be attributed to escalating pension and benefits costs for Town employees.
- Field Operations includes minor maintenance and upkeep like landscaping.
- Utilities are costs to run and monitor the pumping systems.
- Outside Services include engineering, legal, accounting and audit support. It also includes $30K for completion of the Geographical Information System (GIS) that the WPCA purchased for the Town.
- The Danbury Processing item is the cost for the regional plant to process sewer water flow. This is the second largest cost for the Brookfield WPCA. Brookfield contributes about 3% of the total flow to Danbury bearing 3% of the total cost each year. This cost is slated to increase with a major plant upgrade to treat phosphorus that has been mandated by the Federal and State governments.
- The Contribution to Capital is collected in excess of the cost of operation to cover future replacement cost of warn pumps, pipes, trucks and other equipment to run the Brookfield sewer system safely and efficiently. This is consistent with good practice to secure the future without any surprise assessments. The total book assets for the Brookfield sewer system is about $10MM. The replacement cost is 3 to 4 times this accounting number.
- * The capital improvement costs for FY 2016-17 are estimated to be $303 for upgrades in the North area to accommodate growth in the new Town Center District, resulting in a $200,000 Loss. There has not been a rate increase since 2012, but one is needed for 2017-18.