Deficit Elimination Refuse 2015 and Projected Deficit Refuse 2016
The Clerk, Treasurer, and President met at 9:00am on September 9, 2016 to find the cause and to remedy the deficit for Refuse 2015.
The first question we reviewed was the difference in all utility accounts between budgeted amounts and actual recorded amounts.
Our first discovery was that each of the four accounts under our utility billing has its own multiplier.
1. Capital Debt- levied all parcels233 units
2. Water - all parcels with water connection207 units
3. Sewer- based on water207 units
4. Refuse - actual pick-ups (contracted)160 units
We have been setting our utility rate for all four accounts based on the count of 206.
Since this number was not correct 3 accounts came in higher than budgeted and one account (refuse) came in lower than budgeted.
How we determined the refuse count.
Started with Capital Debt233 unitssubtracting
School (own pickup)-25208 units
Churches (own pick up) -3205 units
Com. Properties (own pick–up) -19186 units
Shut-offs (no pick-up) -26160 units
The 160 units is the current number of pick-ups and has been so for at least all of 2015 and 2016 to date.
THE REASON for the deficit in 2015, we were charged for 206 pick-ups when the correct number of pick-ups should have been 160. This resulted in a deficit of $1765.49 in Refuse 2015.
TO ELIMNINATE this deficit we need to charge all users an additional $11.04 for refuse pick-up ($3.68 for monthly payers) on the October 2016 billing.
The result of this additional should allow us to collect the deficit amount of $1,765.49 and eliminate the deficit by the end of the year. (This is assuming all pick-up charges will be paid)
However resolving the Refuse 2015 issue brought to light that we have a projected deficit for Refuse 2016.
To understand this deficit again we needed to be aware of our charges exceeding our ability to collect them.
We were billed 206 pick-ups from October 2015 through July 2016 and in August for 186 users by Waste Management for a total billing of $36,362.24.
The collections for Refuse 2016 to date are $34,088.18.
This gives us projected deficit for Refuse of $2,274.06. This is to date only. An additional deficit may occur as we bill the final quarter of Refuse 2016.
An email letter was sent to Waste Management, this is their preferred communication method, requesting that our billed number of pick-ups be 160. We are not sure if they will do this since they just agreed to 186 starting in August of 2016.
To correct the shortfall projected to date for Refuse 2016 we will need to charge each user and additional $14.22.
BOTTOM LINE –
What we need to collect
Recover deficit for Refuse 2015$11.04 per quarter $3.68 per month
Recover deficit for Refuse 2016$14.22 per quarter $4.74 per month
Option 1 -One time collection -
Total increase to October billing
For refuse$25.26 per quarter$8.42 per month
Option 2- Split two collections-
We have 2 billing dates September 2016 (June, July, August) and December 2016 (September, October, November)
Splitting the $25.26 into two billings would be –
$12.63 a quarter and $4.21 per month.
Either Option may result in having to adjust again to avoid 2016 Refuse Deficit.
The Clerk, Treasurer, and President will meet each Thursday after our regular meeting to review all monetary transactions and budget line items. Hopefully, this will result in catching any problems before they arise.
The meeting concluded at 11:20 am.