EXHIBIT 1 CITY OF CARROLLTON WASTEWATER TREATMENT FACILITIES 1987 PROJECT COST ESTIMATE Construction Cost Treatment Plant1 $2,178,000 3% Contingency 65,340 Total Construction Cost $2,243,340 Engineering Cost Construction Guidance 37,144 Resident Construction Review 40,730 O&M Manual 15,000 Additional Services 2,544 Grant Administration 2,000 Total Engineering Cost 97,418 Land/Easements ---------- Legal 7,500 Bond Cost 53,000 Total Estimated Project Costs $2,401,258 EPA Share (Most Recent Estimate) 873,545 Total Local Share $1,527,713 1Low Bid Received 1-16-87 EXHIBIT 2 CITY OF CARROLLTON WASTEWATER TREATMENT FACILITIES ESTIMATED (1988) ANNUAL REVENUE REQUIREMENTS I. Operation and Maintenance A. Wages, Salaries, Benefits 1. Wastewater Operator $20,000 2. Director of Public Works 10,000 3. Waterworks Office Manager 7,000 4. Payroll Taxes 1,000 Subtotal A $38,000 B. Materials, Supplies, Utilities, & Administration 1. Insurance $4,500 2. Utilities 37,000 3. Chemicals 6,000 4. Office and Billing Expense 1,000 5. Collection System Maintenance 500 6. Treatment Plant Maintenance 1,000 7. Sludge Disposal 2,000 Subtotal B 51,000 C. Equipment Replacement Replacement at ten (10) year intervals; major motors, pumps, electrical controls $170,000 Sinking Fund Factor (10 years @ 7 7/8%) x 0.0695 Subtotal C 12,000 TOTAL OPERATION, MAINTENANCE AND REPLACEMENT $101,000 EXHIBIT 2 (CONTINUED) II. DEBT SERVICE – PROPOSED BONDS A Bond Issue being handled by Columbian Securities, Inc., along with existing funds, will be used to finance the local share of the project costs. A uniform series of payments was assumed to determine the average annual cost for bond repayment. Existing bonds and loans will be totally paid off. Existing Bonds and Loans $ 466,476 Local Share of Project Costs 1,527,713 Less Existing Funds - 794,189 Subtotal $ 1,200,000 Local Share to be Financed $ 1,200,000 Capital Recovery Factor (25 yr x 7.51%) x .090 Maximum Annual Payment for Principal & Interest $ 110,000 Required Reserve Account Payment @ 14%* 15,500 TOTAL YEARLY DEBT SERVICE FOR PROPOSED BONDS $ 125,500 III. SUMMARY Wages, Salaries Benefits $ 38,000 Materials, Supplies, Utilities & Administration 51,000 Equipment Replacement 12,000 Debt Service 125,000 TOTAL ANNUAL REVENUE REQUIRED $ 226,500 The estimated costs used in the above categories have a 1988 basis. All costs items should be reviewed after the first full year of operation and adjustments made to the annual budget as may be required. Changing the annual budget may require a corresponding change in the rate structure. *This Reserve Account along with the Equipment Replacement Account will satisfy the 25% Annual Retainage Requirement of the Bond Sales. EXHIBIT 3 CITY OF CARROLLTON WASTEWATER TREATMENT FACILITIES DETERMINATION OF SERVICE CHARGES I. Basic Service Charge/Rate Description Amount Annual Revenue Required (Exhibit 2) $ 226,500 Industrial Surcharged Expected 0 Subtotal $ 226,500 Deductions (See II below): Fixed Billing Costs (1,000) Subtotal – Remaining Annual Revenue to be Collected (Debt Service $125,500 + OM&R $100,000) $ 225,500 Annual Metered Water Use (1,000 gallons) 55,729 Service Charge Rate/1,000 gallons $ 4.05 II. Minimum Monthly Service Charge Description Amount/Month Per Customer $1,000 Fixed Billing Costs 985x12 $ 0.10 Treatment/Collection Costs for First 2,000 gallons (Service Charge Rate) 8.10 Total $ 8.20 III. Unmetered Service Charge Based on average monthly usage of 3,800 gallons $8.20 + 1,800 gallons x $4.05/1,000 gallons = $ 15.49 IV. Breakdown of Base Service Charge Operation and Maintenance $1.82 (45%) $2.23 (55%) $4.05 EXHIBIT 4 CITY OF CARROLLTON WASTEWATER TREATMENT FACILITIES EXAMPLE OF TYPICAL MONTHLY SEWER BILLS A. Residential User With Low Usage 1. Water Usage = 1,400 gallons/month 2. Sewer Bill: Minimum Monthly Service Charge = $ 8.20 (includes up to first 2,000 gallons) Basic Charge per 1,000 gallons = $ 0 Total Monthly Sewer Bill = $ 8.20 B. Average Residential User 1. Water Usage = 3,800 gallons/month 2. Sewer Bill: Minimum Monthly Service Charge = $ 8.20 Basic User Charge - 1800 x $4.05/1,000 gallons = $ 7.29 Total Monthly Sewer Bill = $ 15.49 NOTE: This calculation is also valid for residential users without meters. C. Residential or Commercial User with Higher Usage 1. Water Usage = 10,000 gallons/month 2. Sewer Bill: Minimum Monthly Service Charge = $ 8.20 Basic User Charge - 8000 x $4.05/1,000 gallons = $ 32.40 Total Monthly Sewer Bill = $ 40.60 USER CHARGE SYSTEM Information pertaining to the UCS should include the following: ENGINEERING/ACCOUNTING DATA 1. Number of users by class: Residential 924 Commercial 54 Industrial 0 Institutional/Governmental 7 2. Billable flow and loading by user class: Annual Billable BOD SS Flow (lbs/day) (lbs/day) Residential 42,461,427 410 530* Commercial 8,791,840 41 53 Industrial 0 0 0 Institutional/Governmental 4,476,050 21 27 Total 55,729,317 472 610 3. Loading concentrations by user class: BOD SS (mg/l) (mg/l) Residential 423 546 Commercial 204 264 Industrial 0 0 Institutional/Governmental 205 264 *Based on estimated 2,409 PE connected to sewer system. 4. O, M & R costs by class (exclusive of costs for debt service): Residential 76,954 Commercial 15,934 Industrial 0 Institutional/Governmental 8,112 Total OM&R Costs 101,000 5. Based on the proposed rates, estimate the revenues to be generated annually from each user class. This should be exclusive of revenue generated for debt service. Residential 78,414 Commercial 16,066 Industrial 0 Institutional/Governmental 8,155 Total Revenue 102,635