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volume users. Fixed costs would be those costs that do not vary <br /> with the amount of wastewater generated. Variable costs vary <br /> directly in portion to flow and in this case consist of the <br /> treatment charge paid to the Town of Hillsborough. All other <br /> costs do not vary appreciably with a flow volume and can be <br /> reasonably- assumed to be fixed. By developing the user system <br /> based on this separation of charges, the County is assured of <br /> developing sufficient revenue to offset the fixed expenses. <br /> Assumptions as to the quantity of wastewater to be treated are <br /> not critical to the budget process. <br /> The remaining unknown in establishing a projected user <br /> charge is to determine the number of customers that will be <br /> served by the sewer system. Table 2 was developed from <br /> information furnished to us by the County staff and is based in <br /> part upon the commitments received from the residents in the area <br /> concerning connection to the sewer system. The table shows the <br /> anticipated number of customers that could be served by the <br /> various combinations of alternate projects. You will note from <br /> the table that we are recommending that the user charge analysis <br /> be based on a slightly higher customer count than the number of <br /> present commitments. While we admit that there is some financial <br /> risk in this assumption, we believe it is reasonable to assume - <br /> that the availability of the sewer will be an inducement to some <br /> 16 <br />