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<br />S9bVE8 RATE STUDY I City of Santa Ana, CA
<br />COST OF SERVICE ALLOCATIONS
<br />The revenue requirements to be derived from rates and charges for wastewater service are summarized
<br />in Lines 1 through 12 of Table 14. In analyzing the Sewer Enterprise's cost of service for allocation to
<br />customer classes, the annual revenue requirements for FY 14/15 are selected as the Test Year
<br />requirements to demonstrate the development of cost of service (COS) wastewater rates. In
<br />determining the cost of service to be met from charges for wastewater service, we deduct income
<br />received from other sources that not subject to rate adjustments from the total revenue requirements.
<br />As a result, the total cost of service to be recovered from rates is shown on Line 12, Column 3.
<br />To facilitate understanding of the COS methodology uses the revenue requirements developed in the
<br />previous sections, as well as how to follow the flow of allocations, Table and Line references are
<br />included as appropriate. For example, the 0 &M expenses for TY 14/15 illustrated on Line 1 of Table 15
<br />corresponds to Line 13 from Table 12.
<br />Table 15: Total Costs to be Recovered from Rates
<br />Column Reference
<br />[1]
<br />[2]
<br />]3]
<br />Revenue Requirements
<br />1,664,100
<br />0
<br />1,664,100
<br />1 0 &M Expenses (Table 12, Line 13)
<br />4,584,400
<br />0
<br />4,584,400
<br />2 Debt Service
<br />0
<br />0
<br />0
<br />3 Transfers (Table 12, Lines 17,18)
<br />0
<br />2,521,100
<br />2,521,100
<br />4 Routine Capital (Table 12, Line 14)
<br />0
<br />38,300
<br />38,300
<br />5 Subtotal
<br />$4,584,400
<br />$2,559,400
<br />$7,143,800
<br />Less Revenue Requirements met from Other Sources
<br />6 Other Operating Revenue (Table 12, Line 11)
<br />18,000
<br />0
<br />18,000
<br />7 Interest Income (Table 12, Line 10)
<br />39,200
<br />0
<br />39,200
<br />8 Subtotal
<br />$57,200
<br />$0
<br />$57,200
<br />Adjustments
<br />9 Annual Cash Fund Balance (Table 12, Line 21)
<br />1,664,100
<br />0
<br />1,664,100
<br />10 Annual Rate Increase (Table 12, Line 7)
<br />(309,100)
<br />0
<br />(309,100)
<br />11 Subtotal
<br />$1,355,000
<br />$0
<br />$1,355,000
<br />12 Cost of Service to be Recovered from Rates
<br />$3,172,200
<br />$2,559,400
<br />$5,731,600
<br />65B -199
<br />NOVEMBER 2014
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