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mains. Therefore, only 22$ of the amount which can be allocated to fixed charges is available for extensions. This is 45 x .22 « $9.90. If it is assumed that a proper rate of return is 6$, then 9.90/.06 a $165 is the investment which the utility can justify, based upon the data and assumptions discussed above. In other words, the District can afford to invest $2.20 per dollar of revenue received from each extension customer per year. Table III is an analysis of the net available after expenses for extensions. TABLE III AMOUNT AVAILABLE FOR EXTENSIONS Year Total Available For Debt Service Debt Service Requirement Net Available For Additions & Extensions Net Available For Extensions 1955 $ 892,320 $ 413,250 $ 179,070 $ 39,400 1956 920,870 413,250 482,620 106,000 1957 959,010 513,250 445,760 98,000 1958 805,400 513,500 291,900 64,200 1959 836,600 513,510 323,090 71,000 I960 860,860 513,290 347,570 76,300 The amount of revenue which may be available for extensions was obtained by allocating 22$ of the amount available for additions and extensions to extensions only. This amount of money will support an average increase in population of approximately 1470 persons per year for the next six years. It is believed that changing conditions do not permit an analysis of this type for longer periods of time. 4. Extension policy general provisions. The establishment of a set of rules to clearly define the utility position and the requirements which must