upr000278 188

\ As a practical matter, tbs advances received under this beading (carried in Account 173) have been made almost entire­ly by developments carried on by real estate subdividers and not by Individual hone owners • The advances received for this purpose prior to 1943 were very small. Xn the last fee years, with the rapid expansion and opening of new subdivisions, the advances have been very considerable . The unrefunded amounts as of the end of the years shown are: 1944 $ 5,390.42 43 22,637.75 46 48,160.50 47 @3,895.59 48 ' '*•\ 107,019.17 49 208,147.97 Analysis of this account shows that the initial advance collected Includes the estimated coat of Installation plus 10$ for supervision and overhead* The 10$, while subject to refund, is not capitalised* This means that the actual plant In service, as represented by the $208,147.97 as of December 51, 1949, was less by some 10$, 1. e* $208,147.97, is equal to 110$ and 100$ is equal to #189,200. A study made Indicated that but approximately §5$ of the advance would be returned in a 10-year period at 80$ of the revenues currently being received. It must be concluded that any advance that does not pay cut within a period of 10 years at the very liberal refund at one-half of each year's revenue, is an uneconomic extension, and the subdivider and/or customer should make a permanent contribution towards the main extension’s support to that extent. To be conservative, and giving weight to the pending increase in water rates, it is concluded that 70$ of the