08-01-11 Regular Meeting of the La Porte Area Water Authority

Browse Search

PROCEDURES BILLING The Authority will bill each Entity on a monthly basis fallowing the criteria set forth In the Contract (Section 7.01) with each entity. Attachment are samples of the format that will be used to invoice each entity each month. Public Works will provide the Information necessary to prepare Section A of the billing. The flat amounts for Sections B, C and D will be calculated once a year to be effective with the October billing, normally mailed in early November. The form shall be completed for each entity as follows: Section A - Public Works will provide the Volume of Water Delivered to the Entity and the Authority's Unit Expense. Calculate the amount due for Section A. The Production and Pumping Operation and Maintenance Expense is included in the Authority Unit Expense. Section B - The Operation and Maintenance Expense Amount is equal to the adopted budget of the Authority. This amount will be calculated each year for each entity by taking the total budget, dividing by 12 for the months in the year, and multiplying by the entity's share of the distribution system costs. This number will be hard coded into the billing. Section C -- The Minimum Monthly Charge (Debt Service) will be calculated once for each fiscal year and will be hard coded into the biliing form. Section D — This section represents the amount billed the entity for the Capital Recovery Fee, as authorized in Section 6.07 of the Contract. Section E — This section represents the amount billed the entity for the Capital Reserve Fee, as authorized In Section 7.01 of the Contract. Section F - This section represents the total amount due for each entity and is the summation of Sections A through E. After the invoice has been prepared for each entity, it will be billed through the City's Miscellaneous Accounts Receivable system. COLI_EGTIONS When you receive payment from an entity, record the payment through the Miscellaneous Accounts Receivable system. The above listed transactions will be recorded in the following revenue accounts: Water Sales (016- 0000408.05-02) � - billings for water delivered, operation and maintenance Debt Service Billings (0170000- 482.01 -00) — Monthly Minimum Charge Capital Recovery Fee (016 - 0000 - 482.02 - -M Capital Recovery Fee Policy RC- MC -01, Page 2