Full Description

This powerpoint presentation begins by outlining the history of fire protection cost, and the two philosophies for determining the costs of fire protection, incremental and proportional. The presentation cites two sources for determining who pays for fire protection: AWWA Manual M1, Water Rates, Chapter 30; and, an article in the June 1982 issue of the Journal AWWA titled, "Water Utility Costs andRate Design for Fire Protection Services", byC.W. Corssmit and D.D. Green. A case study at the City of Missoula, Montana in 2005-2006 is outlined, beginning with the issues that include: Hydrant Charges (Fire Protection Cost)Escalations versus Property TaxLimitations;percentage of property in the city thatis tax exempt; and, lack of a real cost-of-service (COS) methodology. Background information is provided on the City of Missoula, Montana, including statistics on fire hydrant cost vs. city's propertytaxes collection. The city's view of contested issues include:the city is not the beneficiary of fireprotection service;the fire hydrant assessment formulaimposes an unjust and adverse fiscal impactto the city; and, Mountain Water Company's(MWC's) fire hydrant assessment formula is aninequitable and obsolete rate practice, notbased on proportional COSstandards. Topics outlined include: ruling; Wisconsin Public Service Commission; Iowa Utility Board; California Public Utilities Commission; COS Rate Design; FPC Rate Steps; Revenue Requirements; Example of Cost Allocation UnitProcesses; Cost Allocation Functions(Base Extra Capacity Model); and, recommendations for M1.

Product Details

Edition: Vol. - No. Published: 06/01/2007 Number of Pages: 30File Size: 1 file , 5.9 MB