upr000163 11

6 Operation and Maintenance expenses resulted from an increase in the maintenance of the wells; the cleaning out of the springs; more than normal repairs to the buildings and well derricks; higher wage rates; from the new pumps in wells Nos. 8 , 10 and 11, the maintenance on wells, springs and their appurtenances should be lower, the latter accounting for the lower estimated amount for 1951. Depreciation expense, taxes and return vary with each of the capital bases and are as set forth in the Tables. Federal Income Taxes for 1950 have been computed on the basis of the Revenue Act of 1950, and the 1951 taxes on the basis of the Supplemental Revenue Act of 1950. The rates necessarily differ from those used in the November 1950 report. The provision for depreciation expense is the same as in the prior report after adjustment for changed capital additions. Facility Rent, as between Railroad use and the Water Utility, has been adjusted very slightly to conform to the actual division in water us­age during 1950 and the forecast for 1951. The percentages are: Utility is dependent upon the capital base used. In summary, the amounts computed on the straight line basis are as follows: and an increase in the power bill due to increase in the pumping. While the power bill will be higher, due to increased pumping The rate of return used is the same, namely 6-1/4$. The allocation of the total expenses - i. e ., the Joint Water Utility (L.V.L.& W.Co.) 98.0$ 97.57$ 97.85$ Railroad (L.A.& S.L.R.R.Co.) 1950 Estimated 1950 Actual 1951 Estimated "270$ ' 2.43$ 2.15$ Depreciation The annual depreciation expense requirement for the Water Investment POrreisgeinnta l DaCyos tC ost Basis 1950 1950 1951 Estfd Actual Est'd $ 7,850 f 9,721 |Tg,'026