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2019 Water, Recycled Water, and Sewer Rate Study <br />3. Cost -of -Service Analysis <br />Table 3-7: Sewer System Cost Allocation Factors <br />Utility Costs <br />Account Costs <br />100.0% <br />Table 3-8: Sewer Cost Group Allocation <br />100% <br />Utility $7,434,954 $0 <br />Account $0 $504,244 <br />TOTAL: $7,434,954 $504,244 <br />3.1.3 Step 3: Credit Non -Rate Revenue to Cost Groups <br />The next step of the COSA is to calculate the rate revenue requirement for each Cost Group by crediting <br />other sources of revenue. Non -rate revenue is used to offset costs that would otherwise need to be <br />recovered through rates. Non -rate revenue includes interest income, other operating revenue (such as <br />miscellaneous fees), fats, oils, and grease (FOG) program revenue for the Sewer Enterprise, and private <br />fire protection revenue for the Water Enterprise (see Schedule 2 for Water and Schedule 7 for Sewer). <br />For the Water Enterprise non -rate revenue is allocated equitability among the Cost Groups in proportion <br />to their relative value, while non -rate revenue is credited to the Utility Costs for the Sewer Enterprise. <br />These credits are shown below in Table 3-9 and Table 3-10, which show the total rate revenue <br />requirement for water and sewer respectively. <br />Table 3-9: Water Rate Revenue Requirement Calculation <br />Total Costs $40,744,662 $278,614 $21,624,132 $62,647,408 <br />Non -Rate Revenue ($1,415,204) ($9,677) ($751,081) ($2,175,962) <br />Revenue Requirement <br />$39,329,459 $268,937 $20,873,051 $60,471,446 <br />City of Santa Ana Stantec 122 <br />