Assumptions

Financial Projection A ASSUMPTIONS SHEET 
REVENUE ASSUMPTIONS  
I. Collections:  
  Projected Annual Collections, 2001-20051                  
A 2001-2005 $ 5,613                
                     
  Monthly Collections JAN FEB MAR APR MAY JUN JUL AUG SEP
B Projected 2001-2005 $ 468 $ 468 $ 468 $ 468 $ 468 $ 468 $ 468 $ 468 $ 468
               
1 The collection rate is not projected to increase in the coming three years (2001-2004). The collection rate was derived based on the water rate in the town of Appalachia ($26.19), a $5 surcharge, and a collection volume of 15 homes per month. (15 homes/month * ($26.19 water rate + $5 surcharge))

 

II. Funding:   
Initial funding secured for the first two years of the Imboden Community Wastewater Treatment Project: $149,015      
EXPENSE ASSUMPTIONS  
  During the first year, it is estimated that this project will consume 10% of each of the employees listed below. Therefore, 10% of their annual base salaries and benefits will be delegated to the project's expenses. After the first year, it is estimated that the project will consume 4% of the Environmental Health Manager's time and 10% of the Sampler's time. These respective proportions will be delegated as project's expenses.
I. 1 Base Salaries (w/3% annual increase) Year 1 Year 2 Year 3 Year 4 Year 5
  Environmental Health Manager $ 72,900 $ 75,087 $ 77,340 $ 79,660 $ 82,050
  Director of Health District $ 83,400        
  Business Manager of Health District $ 67,000        
  Envrionmental Health Staff; Sampler $ 26,000 $ 26,780 $ 27,583 $ 28,411 $ 29,263
  Administrative Assistant $ 20,550        
  Total: $ 269,850 $ 101,867 $ 104,923 $ 108,071 $ 111,313
2 Salaries will increase 3% annually. 3%        
3 All employees will be covered under the Virginia State Merit System with the employer paying a fringe benefit rate of 27%.          
  Retirement 11.35%        
  FICA 7.65%        
  Group Life Insurance 0.80%        
  Health Insurance 4.80%        
  Retiree Health Insurance 1.57%        
  Long-term disability insurance 0.83%        
    27.00%        
 
4 Benefits; 27% of Salaries Year 1 Year 2 Year 3 Year 4 Year 5
  Environmental Health Manager $19,683 $20,273 $20,882 $21,508 $22,153
  Director of Health District $22,518        
  Business Manager of Health District $18,090        
  Envrionmental Health Staff; Sampler $7,020 $7,231 $7,448 $7,671 $7,901
  Administrative Assistant $5,549        
  Total Benefits: $72,860 $27,504 $28,329 $29,179 $30,054
 
II. Administrative Costs: Year 1 Year 2 Year 3 Year 4 Year 5
  Administrative overhead costs 22% of revenues    
  Telephone expense $600 $600 $600 $600 $600
  Travel Reimbursement $2,500 $2,500 $2,500 $2,500 $2,500
  Postage $750 $750 $750 $500 $500
  Electricity for Plant Operations $360 $360 $360 $360 $360
  Security Light $96 $96 $96 $96 $96
  5% billing fee to Town of Appalachia $210 $210 $210 $210 $210
  Education          
  Wastewater Workshop $1,000 $500 $500 $500 $500
  Educational Material $1,000 $500 $500 $500 $500
  Systems Monitoring / Equipment Maintenance:          
  Stream Samples (Pre and Post Installation) $250 $250 $0 $0 $0
  Quarterly Stream Sampling for 2 years $2,000 $2,000 $0 $0 $0
  Quarterly Effluent Sampling for 2 years $2,000 $2,000 $0 $0 $0
 
III. Supplies: Year 1 Year 2 Year 3 Year 4 Year 5
  Septic Tank Pumpout every 5 years $0 $0 $0 $0 $780
  Sand replacement (annually) $180 $180 $180 $180 $180
  Monitoring/testing beginning 3rd yr. $0 $0 $240 $240 $240
 
IV. Start-up costs include:          
  Land Purchase $3,000        
  Land Survey $3,000        
  System Design $20,000        
  Permits $1,125        
  Construction $91,000        
  Site Location and Soil Evaluation and System Inspections Septic Tank per House $24,640        
  The construction & other start up costs will depreciate over 10 years. $142,765        


Last Updated on 11/28/2000
By Stephen Orton