HomeMy WebLinkAboutCity Council Resolution 821 RESOLUTION NO. 82t
A Resolution of the City Council of the City of
Saratoga Establishing a Method for Determination of Rate of Return
and Necessary Financial Data in Evaluating Rate Increase Proposals
Submitted by Green Valley Disposal Company
The City Council of the City of Saratoga hereby resolves as follows:
SECTION l: In its review of proposed increases in residential service rates and/or
commerc'ial service rates submitted by Green Valley Disposal Company, the City shall
utilize either:or both of the following alternative methodologies to compute rate of return.
A. Net Income ~ Adjusted Total Assets where net income is equal to net
operating income before federal income tax less the provision for federal income tax;
and adjusted total assets are equivalent to current assets plus fixed assets less
the allowance for depreciation on fixed assets.
B. Net Income ~ Stockholders' equity where net income is equal to net
operating income before federal income tax less the provision for federal income tax;
and stockholders' equity is equivalent to issued and outstanding shares plus paid-in
surplus plus retained earnings plus net income .plUs dividends paid.
SECTION 2: In order to conduct the analysis elaborated above, Green Valley Disposal
Company shall submit to the City, at the time of submission of any rate increase
proposal, the Company's Balance Sheets and Comparative Statements of Income and
Expense , which shall be audited financial statements, in addition to any other
financial information necessary to analyze the request for each fiscal year since
the submission of its most recent request for an increase in rates.
The above and foregoing resoltuion was passed and adopted by the City
Council of the City of Saratoga at a regular meeting held on the 6th day of
July, 1.977, by the following vote:
AYES: Councilmen Bridges, Brighc~m, Kraus, Corr & Matte<~.i .. '/~~~~
NOES: Notq~
ABS E NT:
ATTEST
.y Clerk