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 and
Rate Design for Fire Protection Services", by
C.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 Tax
Limitations;
percentage of property in the city that
is 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 property
taxes collection.
The city's view of contested issues include:
the city is not the beneficiary of fire
protection service;
the fire hydrant assessment formula
imposes an unjust and adverse fiscal impact
to the city; and, Mountain Water Company's
(MWC's) fire hydrant assessment formula is an
inequitable and obsolete rate practice, not
based on proportional COS
standards. 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 Unit
Processes; Cost Allocation Functions
(Base Extra Capacity Model); and, recommendations for M1.
| Edition : | Vol. - No. |
| File Size : | 1
file
, 5.9 MB |
| Note : | This product is unavailable in Ukraine, Russia, Belarus |
| Number of Pages : | 30 |
| Published : | 06/01/2007 |
