Hi Liz,
In regard to the answers to the questions, I have listed the responses for which I have information compiled
below.
1. The "Units" from the Treasurer Analysis is million cubic feet. The amounts are derived from two separate
sources of data to allow for an evaluation of an entire 12 month period. For the period from January through
April (which is before the Flint River was utilized as the source of the water), the amounts represent the actual
billings from the Detroit Water & Sewer invoices. For the period from May through December, the amounts
are from the production totals that are reported to our Office from Brent Wright in Water Operations. I
understand that there has been a decrease in units as the usage previously attributable to General Motors
operations on the Flint water system has been diverted to the Genesee County system.
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5. The total of the invoices the City of Flint paid for the DWSD water for the 12 months prior to May Ist was
$25,503,911. The invoices were for 1,285,982.1 million cubic feet. The analysis total of $23,546,288 is based
on the actual usage amounts (which included the aforementioned period from January through April when
DWSD provided water) and will reflect lower usage as General Motors left the system, customer changes in
usage, and variations in watering.
6. The estimated financial impact needs to be roughly defined due to assumptions pertaining to the incremental
expenses incurred from treating the water from the river. Without a full year of history, developing trends for
certain expenses is difficult and some billing cycles for certain additional material expenses like electric power
lag by one month the actual period for which the expense was incurred. Also, because of certain positions
being eliminated in the budget and with wage and benefit changes from contract concessions distorting the data,
obtaining a "trued up" year over year comparison of expenses poses a challenge. Looking at the six months of
actual data, the incremental additional expenses to treat the water from the river have been $1,469,962. This is
compared with the budgeted incremental additional expenses that approximate $2,875,048.
These amounts need to be evaluated in conjunction with the $25,503,911 the City of Flint paid for the DWSD
water for the 12 months prior to May 1st and the previously provided Treasurer Analysis total of
$23,546,288.
If you have any questions or need more information, please let me know (I attached two workbooks which provides
background information). Thank you.
Al Mooney, Interim City Treasurer
(810) 766-7470 ext. aD
Liz Murphy
Assistant to the Emergency Manager
City of Flint
810 237 2025
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Byrne, Randall (T: reasury)