Sewer Capacity Fee Overview in Franklin, Indiana
Learn about Sewer Capacity Fee (SCF) implementation in Franklin, Indiana, using the Equity Method to allocate costs fairly among new and existing customers. The SCF aims to achieve equity between new joiners and current users in the sewer network, ensuring a balanced fee structure. Compare fees and assess the current fee structure below market averages, with insights on the Equity Method calculation and improving the total fee structure.
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Presentation Transcript
PETERS MUNICIPAL CONSULTANTS Franklin, Indiana Franklin, Indiana Sewer Capacity Fee (SCF) March 2020
Table of Contents SCF Definition SCF Overview Fee Comparison How do companies balance the needs of AAA studios with the long tail of indies? Appendix 2
A Sewer Capacity Fee (SCF) can utilize the Equity Method to assign the capital cost responsibility of the system capacity that is or will be available to future customers. The goal of the equity method is to achieve an equity position between new and existing customers of the system. The method assumes that existing customers have provided equity in the existing system and that built-up equity should accrue to benefit existing customers. American Water Works Association 3
Sewer Capacity Fee Overview Who - SCF is assessed on new customers who are joining the existing sewer network. What The fee equals the per household value of the sewer system; prices are scaled up for commercial and industrial users. Why The goal is to achieve an equity position between new and existing customers in the system. When This SCF could be implemented in this fiscal year. Where Franklin s total sewer connection fees are currently below select markets as Franklin only imposes a permit fee. SCF will bring the total fee structure closer to those select markets average. Current Permit Fee Structure Size (in) 5/8 1 1 1 2 3 4 6 8 Fee 2,000 5,000 5,000 5,000 10,000 23,000 23,000 23,000 23,000 4
Sewer Capacity Fee Equity Method Calculation Sewer Capacity Fee (Equity Method) as Follows: Wastewater Assets (Accumulated Depreciation) Subtotal 38,042,810 $ (12,144,755) 25,898,055 Scheduled Improvement Fund Purchases Total Depreciated Assets 1,092,000 26,990,055 $ Usage - Metered Imputed Usage - Unmetered Total Imputed Usage 583,427 38,906 622,333 Depreciated Assets per Usage Unit Average Residential Usage Assets per Residential Unit $ 43.37 38.60 1,674.12 5
Franklins Current Fees are Below Select Markets Total Upfront Sewer Fee Comparison without SCF 500,000 400,000 300,000 200,000 100,000 0 5/8 to 3/4 Inch 1 Inch 1 1/4 Inch 1 1/2 Inch 2 Inch 3 Inch 4 Inch 6 Inch 8 Inch Franklin Greenwood Lebanon Plainfield Bloomington Source: Franklin Utilities, Bloomington Utilities, Lebanon City Documents Archive, Greenwood Utilities, Plainfield City Documents Archive 6
Implementing SCF Aligns Franklin with Select Markets Total Upfront Sewer Fee Comparison with SCF 500,000 400,000 300,000 200,000 100,000 0 5/8 to 3/4 Inch 1 Inch 1 1/4 Inch 1 1/2 Inch 2 Inch 3 Inch 4 Inch 6 Inch 8 Inch Franklin Greenwood Lebanon Plainfield Bloomington Source: Franklin Utilities, Bloomington Utilities, Lebanon City Documents Archive, Greenwood Utilities, Plainfield City Documents Archive 7
Thank You Jeffrey A. Peters, MPA, CPA (INACTIVE) Phone: Cell: Email: (317) 535-6168 (317) 435-6864 jpeters@petersmunicipalconsultants.com Nichole A. Franklin, MSA, CPA Chief Operating Officer Phone: Cell: Email: (317) 535-1128 (317) 502-5878 nfranklin@petersmunicipalconsultants.com www.PetersMunicipalConsultants.com 8
Appendix 9
Total Upfront Sewer Fees Connection 5/8 to 3/4 Inch 1 Inch 1 1/4 Inch 1 1/2 Inch 2 Inch 3 Inch 4 Inch 6 Inch 8 Inch Franklin Greenwood Lebanon Plainfield Bloomington 3,674 9,286 11,696 14,643 27,143 61,572 91,572 177,287 297,288 2,908 7,477 7,477 14,110 29,076 66,875 104,189 209,912 359,168 1,750 4,452 6,900 9,892 17,508 39,268 69,732 156,772 278,628 2,290 5,687 8,445 11,815 20,395 44,907 79,223 177,271 314,539 2,775 7,104 15,984 15,984 28,416 63,936 113,664 255,744 454,656 Source: Franklin Utilities, Bloomington Utilities, Lebanon City Documents Archive, Greenwood Utilities, Plainfield City Documents Archive 10
Upfront Sewer Fee Breakdown Connection Franklin Greenwood Sewer Sewer Size Permit Capacity Fee Total Tap Availability Fee Total Connection 5/8 to 3/4 Inch 1 Inch 1 1/4 Inch 1 1/2 Inch 2 Inch 3 Inch 4 Inch 6 Inch 8 Inch Franklin Greenwood 2,000 5,000 5,000 5,000 10,000 23,000 23,000 23,000 23,000 1,674 4,286 6,696 9,643 17,143 38,572 68,572 154,287 274,288 3,674 9,286 11,696 14,643 27,143 61,572 91,572 177,287 297,288 835 2,073 5,390 5,390 12,023 20,730 47,679 84,993 190,716 339,972 2,908 7,477 7,477 14,110 29,076 66,875 104,189 209,912 359,168 2,087 2,087 2,087 8,346 19,196 19,196 19,196 19,196 Source: Franklin Utilities, Bloomington Utilities, Lebanon City Documents Archive, Greenwood Utilities, Plainfield City Documents Archive 11
Upfront Sewer Fee Breakdown Connection Lebanon Plainfield Bloomington Sewer Treatment Availability Fee Sewer Size Connect / Inspect Availability Fee Total Conveyance Connect / Inspect Total Connection Fee Total Connection 5/8 to 3/4 Inch 1 Inch 1 1/4 Inch 1 1/2 Inch 2 Inch 3 Inch 4 Inch 6 Inch 8 Inch Lebanon Plainfield Bloomington 50 100 100 100 100 100 100 100 100 1,700 4,352 6,800 9,792 17,408 39,168 69,632 156,672 278,528 1,750 4,452 6,900 9,892 17,508 39,268 69,732 156,772 278,628 590 375 785 785 785 785 785 785 785 785 1,325 3,392 5,300 7,632 13,568 30,528 54,272 122,112 217,088 2,290 5,687 8,445 11,815 20,395 44,907 79,223 177,271 314,539 2,775 7,104 15,984 15,984 28,416 63,936 113,664 255,744 454,656 2,775 7,104 15,984 15,984 28,416 63,936 113,664 255,744 454,656 1,510 2,360 3,398 6,042 13,594 24,166 54,374 96,666 Source: Franklin Utilities, Bloomington Utilities, Lebanon City Documents Archive, Greenwood Utilities, Plainfield City Documents Archive 12
