Nelsnick Enterprises has completed an update to the cost allocation methodology report and model for the Upper Oconee Basin Water Authority (UOBWA). The UOBWA has four (4) member counties that use the Bear Creek Water Reservoir for their raw water supply. Additional, three of the members participated in the construction of a water treatment plant. Two (2) intergovernmental agreements were developed concerning the cost allocation of both raw and treated water among the members. In 2001, Mr. Sills, while at Jordan, Jones and Goulding, developed a methodology report and spreadsheet model that interpreted the intergovernmental agreement to allow for the billing of the individual members. At that time, the UOBWA agreed to review and update the model in approximately five (5) years. In 2007, the Authority contacted Mr. Sills, then at Nelsnick Enterprises, to perform this update. Nelsnick Enterprises has also performed the 2012 update.
The model uses Microsoft Excel to allocate the budgeted costs to the members for both raw and treated water. Costs are categorized as fixed and variable. The fixed costs were allocated based on various factors as defined in the intergovernmental agreements to each member and charged each month. The variable costs were divided by the estimated projected use to determine a unit charge. This unit charge was then applied monthly to each member based on their metered use.
The spreadsheet model allowed for an automated process to invoice the members on a monthly basis and keep track of billing volumes on an annual basis. A reconciliation process was provided to verify that actual costs were properly allocated based on actual volumes after the annual audit was performed. The difference in payment and reconciled cost are credited/debited to the members based on the intergovernmental agreement in the following year.