Some of you might be wondering why I am neglecting my blog. In fact, I was busy critically reviewing the budget as it relates to sewer rates and I am producing my first interesting observation on the subject. It seems, the trend of "milking" sewer customers is continuing and it demonstrates that we must stand up for our rights.Just to tickle your interest I present two documents. The one on the left of the "Cash Cow" was presented at the budget open house in the Municipal Hall on January 7th. It shows the "fixed costs" for the sewer as envisioned by the Director of Finance, a whopping $612,817. A generous $150,000 reserve (about 25% of the "Total Fixed Costs) was added to the total bringing it to $762,817.
Upon reviewing said document I found that ($266,654) was included that was part of the "treatment and disposal bill" the City of Vernon submits to Coldstream. That has nothing to do with fixed Coldstream costs. Removing that sum brings the Total Fixed Costs to $341,100, 25% of which ($82,275) is added as reserve. This is how I arrived at the Base Costs of $423,375.
Using the number of connections (2012) the annual fixed cost per connection (or customer!) is calculated as $210 or quarterly $53.
The City of Vernon submits a bill to Coldstream quarterly. The annual bill from the City for 2008 is estimated at $460,000 (give or take). This figure divided by 2012 is $230 in round figures ($57.50 per quarter).
The base cost of $423,375 plus the treatment and disposal cost of $460,000 totals $883,375. Based on these figures the flat sewer rate for 2008 should be $440 annually or $110 quarterly.
Compare this figure to that proposed by the Director of Finance ($568) and you'll see why Coldstream's sewer customers are considered to be "Cash Cows". Council wants to replenish the Sewer Reserve Fund and we are the best subjects for the project.
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