Minutes 08/13/1935 - Laserfiche WebLink

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per quarter minimum, meaning a total annual shrinkage in 'the revenue of the t~epartment saving ~o the individual consumer will mean only 80 cts. - DEPOSITS - If the same reduction is made to conaumers now oay&ng less than $2.70 the reault will be an ~additional loss in revenue tf $2,127.00 per annum, of $7,359.00, while the per Deposits are not required of ~ose living in ~heir own homes· An owner of property, for rent, may sign an agreement for his tenant, and thereby avoid the deoosit, and i~ which instance, if the tenant fails to pay his water bill, the owner is responsible for ~he period of four months only, regardless of the amount delinquent. The object of the deposit is protection of the Water Department from loss of revenue. The deposit is fixed at $5.00 mlnimum because, in practical operation, it is impossible to shut off waSer Lmmediately after the expiration of the fifteen days al lowed for payment. An effort is made to shut off delinquents, within th~ succeeding quar- ter for quarterly consumers, and within the succeeding month for monthly consumers. There - fore, water bills for approximately two quarters or two months, as the case may be, become due before the delinquents are shut off for non-payment. The deposit of $5.00 has no special application to the mlnimmm charge, as a delinquen~ bill for one quarter frequently equals the smount of the deoosit. A deposit of $5.00 apoears to be the minimum which will~ reasonably~ orotect the Department from loss of revenue, even when bills are for the minimum amount. During 193~, one thousand and sixteen deposits were used for payment of delinquent bills and the total deposits were Just about sufficlen~ to pay the total of the bills involved. Of the total water bills charged off in 193~, as uncollectible, the deposits amounted to $1,630.00, wb_ich amount the City- saved by having deposits of $5.00. RECAPITULATION - An abbreviated tabulation of the foregoing data is made below for convenience in considering the many angles ~o the question: 26,9~9.26 1. Shrinkage in surplus from 1931 ~o 1935 $ 63,235.80 2. " "cash balance from. 1931 ~o 1935 ~. Cash deficit for-the year 1935 19,9Y6-15 Estimated cash balance as of Dec. 31st, 1935 ~. Consumers~ deposits on hand 13,275-00 · Estimated operating result for 1935, by Superintendent 7. Units, ~7 yrs. old, which may require replacement or ex- tensive repairs; additional mains required each year, etc. 8. National Board of Fire Underwriters~ report 9. Amortization of 193~ bond issue of $25,000.00 lO. Sinking Fund requirements. ll. Resul$of reduction in rates: loss to Department of $7,359.00, and saving to the consumer of only 80 cts. per year~ 12. Necessity for the $5.00 deposit. In conclusion, both the Superintendent of the Water Department and are of the opinion that to make a further reduction in the earnings of the Water Department is inadvisable at this time s_nd under existing conditions. We are of the further ooinion tha~ the wise policy is to continue the prevailing c~harges and deposit for one or two years longer, when operating results may then be appraised ~ud reductions made, if found to be expedient, and we so recommend." Notion of Nr. Foxto lay on table un~il nex~ meetT~g~' was adopted. UNFINISHED BUSINESS Report of AccguntLug Department for July was received and ordered filed. Report of the City Collector for July was received and ordered filed. NEW BUSii~ESS The following le~te~ was read: ~It is with sorrow that I repor~ the death of Er. W.R. McC~hee, member of the School Board from the Second District, which leaves a vacancy on the School Board from this District. Respectfully s~omitted~ Supt. of Schools Motion of Mr. Brooks to lay on ~ab!e un~il next meeting, and to ap - point a committee ~o bring in resolutions of respec.t on the death of Mr. McGehe~, was adopted and Messrs. W.B. Hutchins and L.T. Fox were named on said Oommittee. The following letter was read: