upr000062 276

A# a practical siatter, the advances received urds** tfele heading (carried in Account. 178) have been rand© almost entire­ly by developments carried m by reel estate subdividers and net by indlvidual hmm owners*. Tim advances received for &f*f# purpose prior to 1948 sere very smell, in the last few years, witfe the rapid expansion and opening of new subdivisions* the advene** here been very considerable. The unrefunded amounts as of the end of tbs years shown are; Analysis of this account shows that the initial advance collected includes the estimated cost of Installation piss 1<^ for supervision and overhead, Tim 1€0, chile subject to refund, is not capitalized • This means that the actual plant in service, as represented by the #808,147,97 as of December 81, 1949, was less fey some !<#, i. e. $809,147.97, is equal to and 100$ is equal to #199,800, A study made indicated that but apiv*exi®ately 68$ of the advance would fee returned in a 10-year period at 80$ of the revenue* currently feeing received. It mat fee concluded that any advance that does not pay cut within a period of 10 year* at the very liberal refund at cue-half of each year*s revenue, Is an uneconomic extension, and the eubdivlder and/or customer should mbs a permanent contribution towards the main extensions support to that extent* To fee conservative, and giving weight t© the pending increase in water rates, it is concluded that 70$ of the 1944 48 46 47 48 49 $ 6,890,48 88,687,78 48,166,80 88,898*89 107,010,17 808,147,97