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Digital ID
upr000062-215
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I agree.» is installing the aervloe is not but is treated as m operating expanse* A change at this tine* i. «• for the rata case, would not to odvantagootio to the Company unless the 4809 service con- 'u'-, t' / n©etlons now in service wore capitalised and included la the rate base. The other important itams la this revenue classification represent penalties in the amount of #1044.85 for failure to pay water bills m time. opsratlnfi Baaenssst Only limited dissuasion will bs given at this time. The oftit Important item is of oourse the purohase price of water. Sons of the more important points may be set down as follows t Cost of later to LVL^Co. i The euraaery results of operation as set forth on page 8 rofleots Important changes In the billings as now rendered. Bush changes Ineludoi 1 - tiee of a depreciated capital base. 8 * Reduction in the annual depreciation percentage from 4$ to approximately 1*3# on the Original Cost tnd 1*0# on the reproduction cost. $ - The elimination of the ad valorem ten charge at the #1*75 rate on the "investment in the* properties and the substitution therefor of a proportionate part of the tax paid on the land to the oity. - The inclusion of a federal income tax* conforming to a 5*0 and d-5/4# rate of return. 4