upr000177 319

Hr. taw Helnhardti U s f m m ~ K&rch 2?, It5© f 2 > d ( 00 Hr* is. k * Sennet* Xu oonneotloii with p#eg$M& application for increase In water rates* In discussing this subject with Mr* Webs and looking over the fils our previous rats increase in 1931, it was felt that it would bo desirable to break down ® w accounts by classification* shearing how much revenue Is produced hf cesgt class of servio#. H d * M taken son* tins, but is now svail&tlX# and is attached is triplicate* dhdglag by the procedure of the Goasulaaion in the previous hearing, they will probably ask us to surest specific Increase* for each class of service in older that these nay bo considered in their rslatlon to the total revenues that may bo produced and the percentage of return on investment. wo have therefor* shown, in red cm attached analysis, the stages ted Increase for each classification now shown in our rate schedule* It is not repeated that those will be approved in toto, but we mist have a basis froa which to negotiate, and tnsos will probably »«rvs as well as any* The houss rats is increase only 50 ©eats par month, but that is the source from which we derive acre revenue than from any other classification* She proposed rate of $2*50 compares favorably with the mane rate of $2*75* Sty |2*50 and U k o $3*00, and will probably *n- counter little resistance* After the house rate is ones established and aaespted, it is Important that other rates be consistent therewith in order to permit & clear and unquestionable application of the rates In the future, as it is sometimes difficult to draw a fin# line between s large oabin and a small house* The next hipest source of revenues is produced by apartnsnt#, which is in practically the s«ne category as s house, and should bear a similar rate* Cabins are nest, and should have some differential from the house rate, but not too wide, for the reason ex­plained above* unfortunately, this is the classification under will oh .auto courts and notels are rated, and we can safest some- organised resistance from this source* w* nay be able to trad# some m m m a l m in the rate, in exchange for elimination of the present vacancy allowance granted motels and auto courts, although X understand the Motel