Excuse me, Commissioner. Councilman Rizzo, can I have a point of information?
Thank 382 3/7/06 - WHOLE - BILL 060001, ETC. you. Commissioner, as long as we're on that phase of questioning, can you tell us what the delinquency rate is? COMMISSIONER BRUNWASSER: That's always an interesting question. I can try to explain it to you in a -- it's a little bit convoluted, but I'll try my best. There are certain terms of art that they use in the collection business, and one of them is "current collection factor" and one that is probably a bit more useful is the "cumulative collection factor." Cumulatively over the years -- and since we went to monthly billing, it hasn't changed very much -- we get approximately 85 percent of what is billed within the fiscal year. If you just isolate the bills you send out from July 1st through June 30th and isolate the receipts for those bills, 85 percent will be collected by June 30th. Now, 383 3/7/06 - WHOLE - BILL 060001, ETC. some of them are not even due yet. Any bill that was sent out June 15th or June 20th, they're due in July. So they're not even late, but 85 percent of that isolated segment is collected within the fiscal year. Now, typically -- and this has been typical now for ten years -- eight to nine percent of the immediate prior year is collected in the current year. So let us say the last complete year we have was Fiscal 2005. The revenues that came in in Fiscal 2005 were probably 85 percent from 2005, eight to nine percent from 2004 and then an additional two to three percent from prior to 2004. So the cumulative amount is 85, plus eight, plus two or thereabouts, 95, 96 percent. That's basically what we get.
I'll finish up. Commissioner, I got a phone 384 3/7/06 - WHOLE - BILL 060001, ETC. call recently, and I want to again thank all the people that you work with. The people in Bucks County were greatly appreciated when you got involved and you got hooked up with the right people up there. They feel as though what you did in dealing with some of the issues with the excess water sewage charges that they were experiencing because going over their allotment, whatever -- I don't pretend to know the entire issue, but all I know is, they said that the relationship has improved greatly and that it benefited Bucks County and this new relationship benefited Philadelphia and the Water Department. So thanks for handling that, because they're very pleased that you were able to cut through the bureaucracy and get that resolved, whatever the big issue was. COMMISSIONER BRUNWASSER: Right. Well, thank you for that, and thank you for putting me in touch with 385 3/7/06 - WHOLE - BILL 060001, ETC. the right people out there and getting our story told, because it hadn't been told prior to that time. And as you know, we're a regional sewer utility and also water, but sewer particularly, because I think about 54 communities and authorities send us their sewage. And we're thankful for that in a way because it gets us to spread the enormous capital cost over a larger group of people.
If I recollect, the issue was when they had heavy rain, they were sending a lot of rainwater to us and being billed because it was in excess of what they would normally send, and it was really hurting them financially. COMMISSIONER BRUNWASSER: Yes. Yes. We received $18.6 million, which helped actually to lower the last rate hike, to some degree.
386 3/7/06 - WHOLE - BILL 060001, ETC. You're welcome. Commissioner, again, I thank you. COMMISSIONER BRUNWASSER: Thank you.
Have a safe, enjoyable trip. I guess many of us wish we were going with you, but since we're not, enjoy. Thank you all very much, and the Committee will stand in recess until tomorrow morning at 10:00 a.m. Thank you all very much for your patience. (Committee of the Whole adjourned at 4:40 p.m.) - - - 387 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on March 7, 2006, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)