HomeMy Public PortalAbout2006-09-14 JFOC Staff Report MEMORANDUM
To: Joint Facility Operating Committee Members
From: Alison Naschak, District Business Manager, Fraser Sanitation District
Re: 2007 Plant Operations and Maintenance Budget
Date: September 14, 2006
Attached is the proposed operations and maintenance budget for the Joint Facilities Wastewater
Treatment Plant for the year 2007. Joe Fuqua has provided budget numbers and these have
been either increased or decreased from last year taking into consideration experience compiled
from operations for the new plant for past couple years, year -to -date actual numbers, projections
for the remainder of the current year, and estimated costs for next year.
The percentages used to determine each partner's share have been rounded for ease of
calculations. Throughout the year these percentages are recalculated quarterly based on each
partners current sales and inventory.
The budgeted amount for the Capital Expense Reserve Fund does not change for 2007 based on
the Capital Reserve Study. These funds are being held in a separate high interest savings
account at Colotrust specifically for the JFOC.
A deposit for the Operations and Maintenance Reserve Fund is not required for 2007 because the
current reserve being held meets the requirement as outlined in the JFOC Agreement. By mutual
agreement, these funds have been deposited at the Grand Mountain Bank for the JFOC checking
account which is used to pay the operations and maintenance expenses. Each month the partners
are billed for their share of expenses. When payment is made by the partners, those funds are
deposited directly back into that account.
The Fraser Sanitation District now fully staffed with 3 full -time plant operators. The time
recorded for each person is separated between plant operations and the Fraser Sanitation District
as needed, and only the actual time associated with plant operations is used to bill the partners.
Consideration should be given to the fact that these'are budget numbers and are as close as we
can determine what the actual expenses may be for 2007. We tend to budget expenses on the
higher side of what we are comfortable with, but also realize that unexpected circumstances may
either cause these numbers to be higher or lower than what is actually budgeted and will take that
into consideration for the following budget year. In any case, only the actual expenses are billed
to the partners.
The budget document will be reviewed in more detail with the Committee at the meeting and Joe
and I will be happy to address any questions or concerns that you may have.
Thank you
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