Loading...
HomeMy WebLinkAboutRate Filing ApplicationINTRODUCTION As a matter of explanation, this Rate Filing Application was prepared based on year-end 1985 financial information. The enclosed Exhibits 1, 2, 3, 4, 5, 6, 7, 8 and 9 were compiled using conventional rate making theory. They support General Development Utilities, Inc.'s actual cost of providing service to its water and wastewater customers in Sebastian Highlands. Exhibits 2A and 5A are supplements to the Filing Application. These Schedules reflect a proposed rate which eliminates any Equity Return or Interest Expense from the Utility's actual cost of providing service. This compromise position was established to reduce the magnitude of the rates necessary to cover the actual operating costs of the Sebastian Highlands system. 0 Index - Notice - Affidavit - Exhibit 1 - Exhibit 2 - Exhibit 2A - Exhibit 3 - Exhibit 4 - Exhibit 5 - Exhibit 5A - Exhibit 6 - Exhibit 7 - Exhibit 8 - Exhibit 9 - GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS RATE CASE 1985 TEST YEAR In compliance with City of Sebastian Ordinances 0-81-8 and 0-81-9 Present and Proposed Rates -- Water and Sewer Constructed Statement of Operations and Rate Structures -- Water and Sewer Constructed Statement of Operations and Rate Structures per Proposal (Supporting Proposed Rates). Average Rate Base, Net Operating Income and Rate of Return Calculation -- Water and Sewer Cost of Capital -- Water and Sewer Calculation of Customer Deposits and Reconnection Charges -- Water and Sewer Calculation of Customer Deposits per Proposal (Supporting Proposed Rates) Used and Useful Analysis Present and Proposed Service Availability and Main Extension Charges -- Water and Sewer Calculation of Proposed Service Availability and Main Extension Charges -- Water and Sewer Carrying Cost Recovery Charge -- Water and Sewer • i HOPPING BOYD GREEN & SAMS CARLOS ALVAREZ BRIAN H. SIBEAU WILLIAM L. BOYD, IV PETER C. CUNNINGHAM WILLIAM H. GREEN WADE L. HOPPING RICHARD D. MELSON WILLIAM D. PRESTON GARY P. SAMS ROBERT P. SMITH,JR. The Honorable Gene City of Sebastian Post Office Box 127 Sebastian, Florida ATTORNEYS AND COUNSELORS SUITE 420, FIRST FLORIDA DANK BUILDING POST OFFICE BOX 6526 JAMES S. ALVES TALLAHASSEE, FLORIDA 32314 KATHLEEN BLIZZARD (904) 222-7500 ELIZABETH C. BOWMAN RICHARD S. BRIGHTMAN ANNE W. CLAUSSEN FRANK E. MATTHEWS STEVEN A.MEDINA CAROLYN S. RAEPPLE August 29, 1986 Harris 32950 OF COUNSEL W. ROBERT FOKES Re: General Development Utilities, Inc. -- Request for an Increase in Water and Sewer Rates and Service Availability/Plain Extension Charges for the Sebastian Highlands Division Dear Mayor Harris.: Pursuant to Section 3 of Ordinances 0-81-8 and 0-81-9, dated May 11, 1981 (the General Development Utilities, Inc. water and sewer franchises), General Development Utilities, Inc., hereby gives notice to the City Council of the City of Sebastian that the Company deems it necessary to amend its charges for water and sewer services provided within its franchise area in the City of Sebastian. The present rates have become insufficient, and under the franchise agreement the Company is entitled to increased rates that are just, reasonable and compensatory, and will provide the Company with a fair and reasonable rate of return on its investment in property used and useful in the public service. General Development Utilities, Inc. respectfully requests that the City Council set a public hearing as provided under said ordinances to consider this request at its earliest convenience. The proposed increases are required to offset the adverse impact of inflation on General Development Utilities' operating costs, and are based on a 1985 test year. In 1985, Sebastian Highlands had an after-tax operating loss of $174,247 in its Water Division and an after-tax operating loss of $101,907 in its Sewer Division. The Company cannot continue to operate if it loses money every year. • The lionorable Gene Harris August 29, 1986 Page 2 • The increase in monthly revenues which General Development Utilities is requesting is $172,660 in the Water Division and $101,255 in the Sewer Division. Based on the 1985 test year, these revenues would cover the Company's operating expenses, but would not cover its interest expense or provide any equity return. Although the Company is entitled under the franchise agreement to recover its interest expense and to earn a fair rate of return on its equity investment, the Company is voluntarily requesting less than a fair rate of return at this time in order to minimize the impact on ratepayers. The current and proposed water and sewer rates are attached hereto and made a part hereof as Exhibit 1. Comprehensive data supporting the proposed rates (and proposed increases in the Company's deposits and reconnection charges) is attached as Exhibits 2 through 6. In addition, the Company seeks to increase its Service Availability/Main Extension Charges to more accurately reflect the current costs of construction. These charges will be incurred only by new customers as they connect to the system. The current and proposed rates are attached hereto and made a part hereof as Exhibit 7 and supporting documents have been included as Exhibit 8. Finally, the Company is requesting that it be authorized to institute a "carrying cost recovery charge" to help defray the carrying costs of water and sewer plant capacity held for future use. Like the Service Availability/Main Extension Charges, the CCRC is recovered from new customers at the time they connect to thb system. Exhibit 9 contains more detail on the proposed CCRC. We hereby request that the revisions to monthly rates for water and sewer service and the Service Availability/Main Extension Charges, and the carrying cost recovery charge, be placed on the Council's agenda and noticed for public hearing at the earliest opportunity, but in any event no later than 60 days from the date of this notice, as required in the franchise ordinance. The Nonorable Gene Harris August 29, 1986 Page 3 Copies of correspondence concerning this application should be sent to the undersigned attorney for General Development Utilities, Inc. and to: Gary White Rate Case Coordinator General Development Utilities, Inc. 1111 South Bayshore Drive Miami, Florida 33131 Very truly your�s,,}� Richard D. Melson RDM/cm Enclosures cc: Xenneth Roth, Vice Mayor Robert McCarthy Lloyd Rondeau Peter Vallone Tom Palmer, Esq. Debbie Krages 11 AFFIDAVIT STATE OF FLORIDA ) COUNTY OF DADE ) • I, Charles E. Fancher, Jr., Senior Vice President of General Development Utilities, Inc., do solemnly swear that the facts stated in the foregoing application and all exhibits attached hereto are true and correct and that said statements of facts constitute a complete statement of the matter to which it relates. Charles E. Fancher, Jr. Senior Vice President, General Development Utilities, Inc. SUBSCRIBED and SWORN to before me this 9th day of ,Augus�1986."/�- ^ 0 ARY PUBLIC STATE OF FLORIDA << MY COMMISSION EXP JUNE 21,1990 -BONDED TRRU GENERAL INS. UND. 'Notary.Public, State of Florida at Large GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS WATER OPERATIONS SCHEDULE OF RATES RESIDENTIAL SERVICE Monthly Billing Charge: Meter Size Base Facility Usage 5/8" X 3/4" $ 3.10 First 10,000 gal - $1.09 per 1,000 gal Next 10,000 gal - 1.63 per 1,000 gal Next 30,000 gal - 2.17 per 1,000 gal Over 50,000 gal - 4.34 per 1,000 gal 1" 7.75 First 25,000 gal - $1.09 per 1,000 gal Next 25,000 gal - 1.63 per 1,000 gal Next 75,000 gal - 2.17 per 1,000 gal Over 125,000 gal - 4.34 per 1,000 gal 1}" 15.51 First 50,000 gal - $1.09 per 1,000 gal Next 50,000 gal - 1.63 per 1,000 gal Next 150,000 gal - 2.17 per 1,000 gal Over 250,000 gal - 4.34 per 1,000 gal 2" 24.81 First 80,000 gal - $1.09 per 1,000 gal Next 80,000 gal - 1.63 per 1,000 gal Next 240,000 gal - 2.17 per 1,000 gal Over 400,000 gal - 4.34 per 1,000 gal Proposed Rates Meter Size Base Facility Usage 5/8" X 3/4" $11.64 First 10,000 gal - $1.10 per 1,000 gal Over 10,000 gal - 1.38 per 1,000 gal 1" 29.10 First 25,000 gal - $1.10 per 1,000 gal Over 25,000 gal - 1.38 per 1,000 gal 1} 58.20 First 50,000 gal - $1.10 per 1,000 gal Over 50,000 gal - 1.38 per 1,000 gal 2" 93.12 First 80,000 gal - $1.10 per 1,000 gal Over 80,000 gal - 1.38 per 1,000 gal Customer Deposits: Present Rates 5/8" X 3/4" $30.00 1" and above Three (3) months estimated billings Proposed Rates Meter Size 5/8" X 3/4" $50.00 1" and above Three (3) months estimated billings Reconnection Charges: Present Rates $13.75 - during regular working hours 18.25 - after regular working hours Proposed Rates $20.00 - during regular working hours 24.00 - after regular working hours EXHIBIT 1 Page 1 of 4 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS WATER OPERATIONS SCHEDULE OF RATES GENERAL SERVICE Monthly Billing Charge: Present Rates Meter Size Base Facility 5/8" X 3/4" $ 3.10 1" 2" 3" 4" 6" Proposed Rates Meter Size 5/8" X 3/4" 1" 1} 2" 3" 4" 6" 7.75 15.51 24.81 49.63 77.54 155.08 Base Facilitv $11.64 29.10 58.20 93.12 186.24 291.00 582.00 Usage First 10,000 gal - $1.09 per 1,000 gal Next 10,000 gal - 1.63 per 1,000 gal Next 30,000 gal - 2.17 per 1,000 gal Over 50,000 gal - 4.34 per 1,000 gal First 25,000 gal - $1.09 per 1,000 gal Next 25,000 gal - 1.63 per 1,000 gal Next 75,000 gal - 2.17 per 1,000 gal Over 125,000 gal - 4.34 per 1,000 gal First 50,000 gal - $1.40 per 1,000 gal Next 50,000 gal - 2.10 per 1,000 gal Next 150,000 gal - 2.80 per 1,000 gal Over 250,000 gal - 5.60 per 1,000 gal First 80,000 gal - $1.40 per 1,000 gal Next 80,000 gal - 2.10 per 1,000 gal Next 240,000 gal - 2.80 per 1,000 gal Over 400,000 gal - 5.60 per 1,000 gal First 160,000 gal - $1.40 per 1,000 gal Next 160,000 gal - 2.10 per 1,000 gal Next 480,000 gal - 2.80 per 1,000 gal Over 800,000 gal - 5.60 per 1,000 gal First 250,000 gal - $1.40 per 1,000 gal Next 250,000 gal - 2.10 per 1,000 gal Next 750,000 gal - 2.80 per 1,000 gal Over 1,250,000 gal - 5.60 per 1,000 gal First 500,000 gal - $1.40 per 1,000 gal Next 500,000 gal - 2.10 per 1,000 gal Next 1,500,000 gal - 2.80 per 1,000 gal Over 2,500,000 gal - 5.60 per 1,000 gal Usage First 10,000 gal - $1.10 per 1,000 gal Over 10,000 gal - 1.38 per 1,000 gal First 25,000 gal - $1.10 per 1,000 gal Over 25,000 gal - 1.38 per 1,000 gal First 50,000 gal - $1.10 per 1,000 gal Over 50,000 gal - 1.38 per 1,000 gal First 80,000 gal - $1.10 per 1,000 gal Over 80,000 gal - 1.38 per 1,000 gal First 160,000 gal - $1.10 per 1,000 gal Over 160,000 gal - 1.38 per 1,000 gal First 250,000 gal - $1.10 per 1,000 gal Over 250,000 gal - 1.38 per 1,000 gal First 500,000 gal - $1.10 per 1,000 gal Over 500,000 gal - 1.38 per 1,000 gal EXHIBIT 1 Page 2 of 4 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS SEWER OPERATIONS SCHEDULE OF RATES RESIDENTIAL SERVICE Monthly Billing charge: Present Rate All meter sizes $10.00 flat rate Proposed Rates, All Meter Sizes Base Facility Usage $13.50 $.95 per 1,000 gallons up to 12,000 gallons. Customer Deposits: Present Rate Meter Size 5/SAX 3/4" $30.00 1" and above Three (3) months estimated billings Proposed Rate Meter Size 5/8" X 3/4" $50.00 1" and above Three (3) months estimated billings GENERAL SERVICE Monthly Billing Charge: Present Rate All meter sizes $10.00 or 100% of water bill, whichever is greater. Proposed Rate Meter Size Base Facility Usage 5/8" X 3/4" $ 13.50 $.95 per 1,000 gallons 1" 33.75 .95 per 1,000 gallons 11 67.50 .95 per 1,000 gallons 2" 108.00 .95 per 1,000 gallons 3" 216.00 .95 per 1,000 gallons 4" 337.50 .95 per 1,000 gallons 6" 675.00 .95 per 1,000 gallons Customer Deposits: Present Rate Meter Size 5/8" X 3/4" $50.00 1" and above Three (3) months estimated billings. Proposed Rate Meter Size 5/8" X 3/4" $50.00 1" and above Three (3) months estimated billings. EXHIBIT 1 Page 4 of 4 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS WATER OPERATIONS SCHEDULE OF RATES Customer Deposits: Present Rates Meter Size 5/8" X 3/4" $50.00 1" and above Three (3) months estimated billings Proposed Rates Meter Size 5/8" X 3/4" $50.00 1" and above Three (3) months estimated billings Reconnection Charges Present Rates $13.75 - during regular working hours 18.25 - after regular working hours Proposed Rates $20.00 - during regular working hours 24.00 - after regular working hours STANDBY CHARGES -FIRE HYDRANT AND/OR SPRINKLER SYSTEMS Present Annual Rates 4" Mains - $ 400.00 per year 6" Mains - 800.00 per year 8" Mains - 1,280.00 per year Proposed Annual Rates 4" Mains - $1,164.00 per year 6" Mains - 2,328.00 per year 8" Mains - 3,724.00 per year EXHIBIT 1 Page 3 of 4 10:23 AM 08/27/86 6855MFA Col. 1 Line No. 1 Operating Revenues Operating Expenses - 2 Operation 3 Maintenance 4 Depreciation 5 Taxes Other Than Income Taxes 6 Provision For Income Taxes 7 B Net Operating Income 9 Other Expense: t0 Interest 11 Net Income Exhibit 2 Schedule 1 Page l of 8 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS NATER OPERATIONS CONSTRUCTED STATEMENT OF OPERATIONS TWELVE MONTHS ENDED DECEMBER. 31, 1985 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Col. 1 ADJUSTMENTS CONSTRUCTED -------------------------------- AS CONSTRUCTED STATEMENT OF PER BOORS FUTURE USE OTHER ADJUSTED ADJUSTMENTS OPERATIONS f 74,239 -------- f 0 f 4,959 --------- --------- f 79,198 --------- f 435,087 --------- f 514,285 --------- 78,485 0 8,850 87,335 0 87,335 13,654 0 428 14,082 0 14,082 • 128,788 (38,526) (1,608) 88,654 0 88,654 18,116 12,746) 0 15,370 0 15,370 (118,509) -------- 0 17,197 --------- --------- (101,312) --------- 147,723 -------- 46,411 -------- 120,534 -------- (41,272) 24,867 --------- --------- 104,128 --------- 147,723 -------- 251,851 -------- (46,295) -------- 41,272 (19,9081 --------- --------- (24,930) --------- 287,364 -------- 262,434 -------- (127,952) (19,528) (147,480) 0 (147,480) -------- 1127,952) -------- --------- --------- 0 119,5281 --------- --------- --------- (147,480) --------- -------- 0 -------- -------- (147,480) -------- 1 (174,247) f 41,272 f (39,436) f 1172,410) f 287,364 f 114,954 • 10:23 AM GENERAL DEVELOPMENT UTILITIES, INC. 08127!86 SEBASTIAN HIGHLANDS SENER OPERATIONS 685SMFR CONSTRUCTED STATEMENT OF OPERATIONS TWELVE MONTHS ENDED DECEMBER 31, 1985 Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Cel. 7 Line ADJUSTMENTS CONSTRUCTED No. -------------------------------- AS CONSTRUCTED STATEMENT OF PER BOOKS --------- FUTURE USE OTHER ---------- ADJUSTED ADJUSTMENTS OPERATIONS 1 Operating Revenues f 48,500 -------- --------- f 0 f 3,003 --------- --------- --------- f 51,503 ----------- f 156,653 ----------- f 208,156 Operating Expenses: ---------- --------- --------- 2 Operation 71,472 0 8,313 79,785 0 79,785 3 Maintenance 9,151 0 277 9,428 0 9,428 4 Depreciation 66,730 (39,970) 195) 26,665 0 26,665 5 Taxes Other Than Income Taxes 10,717 (4,081) 0 6,636 0 6,636 6 Prevision For Income Taxes (70,174) -------- 0 30,6BB --------- --------- (39,466) --------- 42,949 -------- 3,463 -------- 1 97,896 -------- (44,051) 39,184 --------- --------- 83,028 42,949 125,977 8 Net Operating Income (39,396) -------- 44,051 (36,180) --------- --------- --------- (31,525) -------- 113,704 -------- 82,179 9 Other Expense: --------- -------- -------- 10 Interest (62,511) -------- 16,329 ------------------ (46,182) --------- 0 (46 182) (62,511) -------- 0 16,329 --------- --------- (46,182) -------- 0 -------- (46,182) 11 Net Income --------- -------- -------- f 1101,907) f 44,051 f (19,851) f (77,707) f 113,704 f 35,997 Exhibit 2 Schedule I Page 2 of 8 0 A GENERAL OEYELOFMENT UTILITIES, INC. SEBASTIAN HIGHLANDS NATER AND SEWER OPERATIONS NOTES TO CONSTRUCTED STATEMENT OF OPERATIONS ADJUSTMENTS Line Col. I Col. 2 Col. 3 Col. 4 Col. 5 No. ---- NATER SEWER 1 OPERATION EXPENSE - ---------- 2 ---------------------- A. Adjustment to reflect changes in Operation Expense computed as follows: 3 1) Labor: Water Sewer 4 Total Payroll -Operations Expense ------- f 36,468 ------- 26,912 5 x X increase 5.601 5.60% 6 Additional Annual Payroll Expense 2,042 1,507 7 Adjusted for 7/85 effective date 0.50 0,50 B Total Payroll Adjustment f 1,021 754 f 1,021 f 754 9 1) Labor -Related Expense: 10 PIR Taxes -State and Federal f 3,436 2,490 AIC 926,925,934 - Pensions, benefits, 11 and related 7,626 5,386 12 Subtotal Labor -Related 11,062 7,876 13 % Applicable to Operations BO.84I 82.57% 14 Operations Labor -Related 9,942 6,503 15 x % increase 5.60% 5.601 16 Additional Annual Payroll -Related Expense ------- 501 ------- 364 17 Adjusted for 7/85 effective date 0.50 0.50 1B Total Operations Payroll -Related Adiustment ------- $ 250 ------- IB2 250 182 19 3) General Operation Expense Inflation Adjustment: 20 Operation Expense - Test Year f 78,485 71,472 21 Less amounts not subject: 22 a) Labor 36,468 26,912 13 b) Labor -Related 6,406 4,309 24 c) Regulatory Commission Expense 0 0 25 d) Electric Costs 15,735 ------- 26,411 ------- 26 Amount Subject to Inflation Adjustment 19,876 13,840 27 Inflation Adjustment Factor 3.331 3.33% 28 Operation Expense Inflation Adjustment -------------- f 662 461 662 461 29 4) Adjustment to amortize estimated rate case expense over 3 years, allocated equally between water and sewer. ($41,50013YRS) x 501 6,917 6,917 30 TOTAL OPERATION EXPENSE ADJUSTMENT -------------------- f 11,950f 8,313 Exhibit 2 Schedule 1 Page 3 of 8 0 A GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS WATER AND SEWER OPERATIONS NOTES TD CONSTRUCTED STATEMENT OF OPERATIONS ADJUSTMENTS Line Col. 1 Cal. 2 Cal. 3 Col. 4 Col. 5 No. ---- WATER SEWER ----------- -------- 1 MAINTENANCE EXPENSE 2 ---------------------- A. Adiustment to reflect increase in Maintenance Expenses computed as follows: 3 1) Labor: Water Sewer 4 Total Payroll -Maintenance expense f 8,646 5,682 5 x % increase 5.601 5.601 6 Additional Annual Payroll Expense 484 318 7 Adjusted for 7/B5 effective date 0.50 0.50 B Total Payroll Adjustment f ------- 242 ------- 159 f 242 f 159 9 2) Labor -Related Expense: 10 P/R, Taxes -State and Federal f 3,436 2,490 A/C 926,925,934 - Pensions, benefits, 11 and related 7,626 ------- 5,386 12 Subtotal Labor -Related 11,062 ------- 7,876 13 9. Applicable to Maintenance 19.161 17.431 14 Maintenance Labor -Related ------- 2,120 ------- 1,373 15 x X increase 5.601 5.601 16 Additional Annual Payroll -Related Expense ------- 119 ------- 77 17 Adjusted for 7105 effective date 0.50 0.50 18 Total Maintenance Payroll -Related Adjustment f 59 38 59 38 19 31 General Maintenance Expense Inflation Adjustment: 20 Maintenance Expense - Test Year f 13,654 9,151 21 Less amounts not subject: 22 a) Labor 8,646 5,682 23 b) Labor -Related 1,220 1,011 24 cl Regulatory Commission Expense 0 0 25 Amount Subject to Inflation Adjustment ------- 3,788 ------- 2,392 26 Inflation Adjustment Factor 3.331 3.331 27 Maintenance Expense Inflation Adjustment f 126 80 126 BO 28 TOTAL MAINTENANCE EXPENSE ADJUSTMENT ---------- f 428 ---------- E 277 Exhibit 2 Schedule 1 Page 4 of 9 • 0 0 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS NATER AND SEWER OPERATIONS NOTES TO CONSTRUCTED STATEMENT OF OPERATIONS ADJUSTMENTS Line Col. I Col. 2 Col. 3 Col. 4 Col. 5 No. ---- FUTURE USE OTHER --------------------------------- NATER SEWER ------------------------------- NATER SEWER DEPRECIATION ------------ ---------- ---------- ---------- I ---------------------- A. Adjustment to reduce depreciation expense for that portion . of plant considered held for future use. S 138,526) f f39,970) 2 B. Adjustment to remove depreciation expense on plant retired at year end, but not yet removed from the books (See PIS Adjustment 91. S (1,608) $ (95) • 3 -------------------- TOTAL DEPRECIATION ADJUSTMENTS $ 138,526) f (39,970) --------- --------- f (1,608) S (95) Exhibit 2 Schedule I Page 5 of 8 0 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS NATER AND SEWER OPERATIONS NOTES TO CONSTRUCTED STATEMENT OF OPERATIONS ADJUSTMENTS Line Col. I No. 1 TAXES OTHER THAN INCOME TAXES ----------------------------- 2 A. Adjustment to adjust property taxes for that portion of plant 3 considered held for future uses Water Sewer 4 Property Tax Expense per Books f 14,187 8,227 5 Property Tax on Net Additions 0 0 -------- -------- 6 Adjusted Books 14,187 8,227 7 Future Use Percentage 19.35BD71 49.609061 -------- -------- 8 Future Use Property Taxes f 2,746 4,081 Exhibit 2 Schedule I Page 6 of B Cal. 2 Col. 3 FUTURE USE ---------------------------- WATER SEWER --------- -------- (2,746) 1 (4,081) E 0 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN H16HLANDS MATER AND SEWER OPERATIONS NOTES TO CONSTRUCTED STATEMENT OF OPERATIONS ADJUSTMENTS • 0 Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Col. 7 Col. 8 NATER SEWER Line---------- ---------- No. PROVISION FOR INCOME TAMES ---- 1 -------------------------- A. Adjustment to Provision for Income Taxes: _ Nater Sewer Total 2 Adjusted Net Income -------- f (172,4101 -------- (17,7071 -------- (250,118) 3 Provision for Income Taxes (101,3121 (39,486) 1140,798) 4 Total Taxable Income f (273,7221 (117,193) (390,916) (390,9161 5 Less State Tax Exemption 2,500 2,500 5,000 6 State Income Tax @ 5.501 (15,1921 (6,583) (395,916) (21,774) (21,774) 7 Amount Subject to Federal Income Tax (369,1411 B Taxes @ 18.331 75,000 (6,875) 16,875) (75,000) (13,750) 9 Balance 1 34.001 (70,9001 (10,607) f (294,141) (100,007) l0 ITC Amortization 8,345 5,420 13,765 Il Total Income Taxes -------- f (101,312) -------- (39,486) f -------- (149,2961 OPERATING REVENUES 12 A. ------------------ Adjustment to decrease Operating Revenues for guaranteed 13 contractual revenues. f (3,674) 1 0 14 B. Adjustment to annualize test year revenues for end -of -period 15 connections. Nater Sewer 16 12/31/85 connections ------- 633 ------- 403 17 Average connections 564 380 l8 Annualization factor 1.1223 1.0619 19 Test year revenues f 70,565 48,500 20 Revenues as annualized ------- 79,198 ------- 51,503 21 Revenue adjustment 3 8,633 3,003 8,633 3,003 f 4,959 3 3,003 22 C. Adjustment to increase Operating Revenues to the total level 23 required to provide a fair return on rate base. 3 435,OB7 1 156,653 Exhibit 2 Schedule i Page 7 of B • 0 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS NATER AND SEWER OPERATIONS NOTES TO CONSTRUCTED STATEMENT OF OPERATIONS ADJUSTMENTS Col. 1 Col. 2 Col. 3 Cal. 4 Col. 5 Col. 6 Line Water No. 14TEREST EXPENSE Adiusted Net Income f ---- 1 ---------------------- A. Adjustment to increase expense, based on the Capital Structure 2 of General Development Utilities, Inc. as reflected an Exhibit 3 3 Schedule 1. Water Sewer 4 Adjusted Rate Base --------- --------- f 2,020,275 632,636 5 Weighted Cost of Debt 7.30% 7.301 6 Proforma Interest Expense --------- --------- 147,480 46,182 7 Interest Expense Per Books 127,952 --------- --------- 62,511 8 Interest Expense Adjustment f 19,528 --------- --------- 116,3291 9 TAXES OTHER THAN INCOME TAXES ----------------------------- l0 A. Adjustment to increase gross receipts tax due to additional I1 revenue. 12 PROVISION FOR INCOME TAXES -------------------------- 13 B. Adjustment to Provision for Income Taxes; Total 150,951 49,874 200,824 200,824 5,000 195,824 10,770 10,770 190,054 75,000 13,750 f 115,054 39,118 13,765 f 49,874 Col. 7 Col. 8 WATER SEWER ----------- ---------- f 19,528 f (16,3291 f 0 f 0 Water Sewer 14 Adiusted Net Income f -------- 114,954 -------- 35,997 15 Provision. for Income Taxes 46,411 3,463 16 Total Taxable Income f 161,364 39,460 17 Less State Tax Exemption 2,500 2,500 l8 State Income Tax @ 5.501 8,738 2,033 19 Amount Subject to Federal Income Tax 20 Taxes @ 18.33% 75,000 6,875 6,875 21 Balance @ 34.00% 39,143 (25) 22 ITC Amortisation. 8,345 -------- 5,420 -------- 23 Total Income Taxes f ' 46,411 3,463 Exhibit 2 Schedule 1 Page 8 of 9 Total 150,951 49,874 200,824 200,824 5,000 195,824 10,770 10,770 190,054 75,000 13,750 f 115,054 39,118 13,765 f 49,874 Col. 7 Col. 8 WATER SEWER ----------- ---------- f 19,528 f (16,3291 f 0 f 0 !(1:44 AM GENEPAL DEVELOPMENT UTILITIES, INC. 08/77/86 SEBASTIAN HIGHLANDS NATER OPERATION GB5SMFR BASE FACILITY AND USAGE CHARGE COMPONENTS FACTORED ERC'S FACTORED GALLONAG ASSIGNED PERCENTAGE NO. 9,579 ND. 55,427 CONSTRUCTED BASE USAGE BASE COMPONENT USAGE COMPONENT TEST YEAR ADJUSTMENTS TEST YEAR FACILITY CHARGE FACILITY COST CHARGE COST OPERATION k MAINTENANCE EXPENSE ---------------------------------- ----------- ---------- -------------------- ------------------- 1 SOURCE OF SUPPLY EXPENSES: Purchased water 0 0 0 0.001 100.00% 0 $0.00 0 $0.00 Other source o6 supply exp. 36 1 37 100.001 0.001 31 $0.00 0 $0.0 2 PUMPING EXPENSES: 15,735 0 15,735 0.001 100.001 D $1:.00 15,735 $0.28 3 TREATMENT EXPENSES: 47,879 1,648 49,527 0.00% 100.001 0 10.00 49,527 50.89 4 TRANSMISSION / DISTRIBUTION EXPENSES: B20 29 849 0.001 !00.001 0 $0.00 849 $0.01 5 CUSTOMER ACCOUNTS EXPENSES: $0.00 Meter Reading Labor 3,041 106 3,147 100.001 0.00% 3,147 $0.33 D $0.0 Other c'stcoer account exp. 7,050 240 7,290 50.001 50.001 3,645 $0.38 3,645 $0.07 6 ADMINISTRATIVE AND GENERAL EXPENSES: 17,578 7,254 24,832 50.001 50.00'% 12,416 $1.30 12,416 $0.22 TOTAL OPERATION 6 MAINT. EXFENSE ---------- 92,139 ---------- 9,278 ----------- 101,417 --------- 19,245 --------- $2.01 --------- --------- 82,172 $1.4B DEPRECIATION EXPENSE 128,798 ---------- (40,134) ---------- BB,654 ----------- 100.001 0.001 88,654 --------- $9.16 --------- 0 --------- $0.00 --------- AMORTIZATION EXPENSE ---------- 0 ---------- 0 ----------- 0 100.001 0.001 --------- --------- $0.00 --------- 0 --------- VI. 01) TAXES OTHER THAN !NCDME TAX I GROSS RECEIPTS TAX 0 0 0 51.331 48.671(A) 0 $0.00 0 $0.00 2 FRANCHISE TAX 493 0 493 51.331 48.6710) 253 $0.03 240 $0.00 3 PROPERTY TAX 14,!87 (2,746) 11,441 100.001 0.001 11,441 11.19 0 $0.00 4 OTHER TAXES 3,436 ---------- 0 ---------- 3,436 ----------- 50.001 50.001 1,118 --------- $0.18 --------- 1,716 --------- $0.03 --------- TOTAL TAXES OTHER THAN INCOME 18,116 =__-=-'_== (2,746) -________ 15,370 13,412 ==._____= $1.40 __=__=___ 1,958 ===____=_ $0.04 INCOME TAX EXPENSE (118,509) 164,920 ___________ 46,411 0.001 100.001 0 $0.00 46,411 $0.84 OPERATING EXPENSE 120,534 131,317 251,851 121,311 112.66 130,541 $2.36 OPERATING EARNINGS - INTEREST 127,952 19,528 147,480 100.001 0.001 147,480 $15.40 0 $0.00 EgUITY EARNINGS (174,2471 289,101 114,954 0.001 100.001 0 $0.00 114,954 $2.07 TOTAL REVENUE ---------- 74,239 ---------- 440,046 ----------- 514,2B5 --------- 268,791 --------- $28.06 --------- 245,494 --------- $4.4.3 LESS MISC. OPERATING REVENUE 4,876 4,959 9,835 100.001 0.001 9,835 $1.03 0 $0.00 TOTAL BILLING REVENUE - RATES ---------- 69,363 ---------- 435,087 ----------- 504,450 --------- 258,956 --------- $27.03 --------- 245,494 --------- $4.43 (4) Same percentage ratio as revenue produced 40 9 WATER � IIB RESIDENTIAL: 136 1.00 1) 5/B-3/4" meter NBA 2) 1" meter WBB 3) 1 1/2" meter NBC 4) 2' meter NBD 5) 3' meter 57 TOTAL RESIDENTIAL ro � IIB 1.1537 136 1.00 136 10000 LQ ;D, 425 0 (D (D x GENERAL SERVICE: tj r bid 1) 5/8-3/4' 57 F- H meter NBF O (D H 2) 1' 0 25000 0 0 0 N N $4.43 8,775 $5.54 2,263 +25000 0 4) 2' meter WBS 5) 3' 0 5.00 6) 4' 0 0 7) 6' $1,351.50 12,164 $4.43 6' TOTAL GENERAL SERVICE WATER RATE REVENUE IMMATERIAL DIFFERENCE TOTAL WATER OPERATION GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS NATER OPERATION EQUIVALENT RESIDENTIAL CONNECTION LOAD FACTOR PROPOSED RATES AND REVENUE NUMBER ANNUAL17ED METER FACTORED USAGE GALLONS ANNUALIIED FACTORED OF BILLS GROWTH 4 OF BILLS EQUIVALENT ERC'S LEVEL (000) GALLONS GALLONS test year FACTOR Itest year) FACTOR (test year) (test year) (000) --------- --------- ---------- ----------------------------- ---------- --------- ---------- 6,431 1.1537 7,419 1.00 7,419 10000 30,997 35,761 35,761 +10000 3,219 3,714 4,642 0 1.1537 0 2.50 0 25000 0 0 0 +25000 0 0 1.1537 0 5.00 0 50000 0 0 0 +50000 0 0 1.1537 0 8.00 0 80000 0 0 0 +80000 0 0 1.1537 0 16.00 0 160000 0 0 0 +160000 0 -------------------------------------------------------------- 6,431 7,419 7,419 34,216 39,475 40,404 meter WBE IIB 1.1537 136 1.00 136 10000 368 425 425 0 $5.54 0 $135.15 0 +10000 49 57 71 meter NBF 0 1.1537 0 2.50 0 25000 0 0 0 6,055 $4.43 8,775 $5.54 2,263 +25000 0 $4.43 0 meter WBS 0 1.1537 0 5.00 0 50000 0 0 0 0 $1,351.50 12,164 $4.43 41,332 ------------- +50000 0 0 meter MBH 0 1.1537 0 8.00 0 80000 0 0 0 $258,956 ---------- 1245,494 +80000 0 0 meter NBI 12 1.1537 14 16.00 224 160000 1,717 1,981 1,981 +160000 354 409 511 meter WBJ 0 1.1537 0 25.00 0 250000 0 0 0 +250000 0 0 meter NBI: 23 1.1537 27 50.00 1,350 500000 2,346 2,707 2,707 +500000 0 0 meter WBK KNOWN ADDS 9 50.00 450 9,330 9,330 9,330 ----------- ----------- 0 153 186 ----------- 2,160 ---------- 14,164 --------- ---------- 14,907 15,023 6,584 7,605 9,579 48,380 54,382 55,427 BASE FACILITY USAGE CHARGE PROPOSED GENERATED RATE PER GENERATED RATES REVENUE 1000 6. REVENUE --------------------------------------- $27.03 200,536 $4.43 158,423 $5.54 20,574 $67.58 0 $4.43 0 $5.54 0 $135.15 0 $4.43 0 $5.54 0 $216.24 0 $4.43 0 $5.54 0 $432.48 0 $4.43 0 $5.54 0 $200,536 $178,997 $27.03 3,676 $4.43 I,Bel $5.54 313 $67.58 0 $4.43 0 $5.54 0 $135.15 0 $4.43 0 $5.54 0 $216.24 0 $4.43 0 $5.54 0 $432.48 6,055 $4.43 8,775 $5.54 2,263 $675.75 0 $4.43 0 $5.54 0 $1,351.50 36,491 $4.43 11,990 $5.54 0 $1,351.50 12,164 $4.43 41,332 ------------- $5.54 0 $58,386 ---------- $66,554 $258,922 $245,551 34 ------------- (57) $258,956 ---------- 1245,494 is • • 10:44 AM GENERAL DEVELOPMENT UTILITIES, INC. 08127/86 SEBASTIAN HIGHLANDS SEWER OPERATION 6855MFR BASE FACILITY AND USAGE CHARGE COMPONENTS FACTORED ERC'S FACTORED GALLONAG ASSIGNED PERCENTAGE N0. 5,505 NO. 28,519 CONSTRUCTED BASE USAGE BASE COMPONENT USAGE COMPONENT TEST YEAR ADJUSTMENTS TEST YEAR FACILITY CHARGE FACILITY COST CHARGE COST OPERATION EXPENSE ---------------------------------- ----------- ---------- -------------------- ------------------ I SUPERVISION & LABOR 23,393 813 24,206 100.00I 0.001 24,206 $4.40 0 $0.00 2 OPERATING SUPPLIES & EXPENSE 32,149 190 32,299 0.001 100.001 0 $0.00 32,299 $1.13 3 TRANSPORTATION EXPENSE 1,511 50 1,561 50.001 50.001 781 $0.14 781 $0.03 TOTAL OPERATING EXPENSE ---------- 57,013 ---------- 1,053 ----------- 58,066 --------- 24,997 --------- 14.54 ------------------ 33,080 $1.16 MAINTENANCE EXPENSE ---------- ---------- ----------- --------- --------- --------- --------- I MAINT. OF BLDG & GROUNDS 1,420 49 1,469 100.001 O.D01 1,469 40.21 0 $0.00 2 MAINT. OF TREATMENT PLANT EQUIP. 7,172 245 7,417 100.001 0.001 7,417 $1.35 0 $0.00 3 MAINT. OF SEWAGE & COLL. SYSTEM 559 10 569 100.001 0.001 569 $0.10 0 $0.00 TOTAL MAINTENANCE EXPENSE ---------- 9,151 ---------- 304 ----------- 9,455 --------- 9,455 --------- $1.72 --------- --------- 0 $0.00 CUSTOMER ACCDUNTING & COLLECTION EXPENSE I ACCOUNTING & COLLECTING 3,494 127 3,611 50.001 50.001 1,806 $0.33 1,806 $0.06 b CA W O t7 2 UNCOLLECTIBLE ACCOUNTS 320 11 331 50.001 50.001 166 $0.03 166 10.01 LQ�3' ---------- ---------- ----------- ------------------ --------- ----- (1) (D a: TOTAL CUSTOMER ACCTIN6 & COLLECT'N EXPENSE 3,804 138 3,942 1,971 $0.36 1,971 $0.07 ¢ H uj H GENERAL EXPENSE O (D �-3 l GENERAL OFFICE SALARIES 2,537 Be 2,625 50.001 50.001 1,313 $0.24 1,313 $0.05 N J 2 GENERAL OFFICE SUPPLIES & EXP. 433 14 447 50.001 50.001 224 $0.04 224 $0.01 r. 3RENTS 0 0 0 100.001 0.001 0 $0.00 0 P.00 4 OTHER GENERAL EXPENSE 7,685 6,994 14,679 50.001 50.001 7,340 $1.33 7,340 $0.26 TOTAL GENERAL EXFENSE ---------- 10,655 ---------- 7,096 ----------- 17,751 ------------------ 8,876 $1.61 --------- --------- 8,876 $0.31 DEPRECIATION EXPENSE 66,730 (40,065) 26,665 100.001 0.001 26,665 $4.84 0 $0.00 AMORTIZATION EXFENSE 0 0 0 100.001 0.001 0 10.00 0 $0.00 TAXES OTHER THAN INCOME TAX I GROSS RECEIPTS TAX 0 0 0 58.751 41.251(A) 0 $0.00 0 $0.00 2 FRANCHISE TAX 0 0 0 58.751 41.251(A) 0 $0.00 C. $0.00 3 PROPERTY TAX 8,227 (4,O81) 4,146 100.001 0.001 4,146 10.75 D $0.00 4 OTHER TAXES 2,490 ---------- 0 ---------- 2,490 ----------- 50.001 50.001 1,245 $0.23 1,245 $0.04 TOTAL TAXES OTHER THAN INCOME 10,717 14,081) 6,636 --------- 5,391 --------- $0.98 ------------------ 1,245 $0.04 INCOME TAX EXPENSE 110,174) 73,637 3,463 0.001 100.001 0 $0.00 3,463 $0.12 OPERATING EXPENSE --- --- - 87,896 - -------- 38,081 ----------- 125,977 77,344 --------- $14.05 --------- ---- 48,634 ---- 11.71 OPERATING EARNINGS - INTEREST 62,511 (16,329) 46,182 100.001 0.001 46,182 $9.39 0 $0.00 EQUITY EARNINGS (101,907) ---------- 137,904 ---------- 35,997 ----------- 0.001 100.0ox 0 $0.00 35,997 $1.26 TOTAL REVENUE 48,500 159,656 208,156 --------- 123,526 --------- 122.44 ------------------ 94,631 $2.97 LESS MISC. OPERATING REVENUE 0 3,0033,003 100.001 0.001 3,003 $0.55 0 $0.00 ---------- ---------- ----------- TOTAL BILLING REVENUE - RATES 48,500 156,653 205,153 --------- 120,523 --------- $21.89 --------- 84,631 --------- $2.97 • SEWER RESIDENTIAL: 1) 5/8-3/4` 2) 1" 3) 1 1/2' 4) 2" TOTAL RESIDENTIAL 'o w GENERAL SERVICE: W 0 LI7 1) 518-3N' meter x 21 1" (D (D EQUIVALENT RESIDENTIAL CONNECTION LOAD FACTOR meter SBG f { 3) 1 I/2" 5.00 f✓ w 4) 2" ANNUALIZED METER FACTORED Fl F -i 5) 3" O (D H 6) 4" t -h FACTOR (test year) FACTOR (test year! ----------------------------------- meter SBA N N 71 6" .P SBB 0 1.0495 TOTAL GENERAL SERVICE SEWER RATE REVENUE IMMATERIAL DIFFERENCE TOTAL SEWER OPERATION meter SBE 29 1.0495 GENERAL DEVELOPMENT UTILITIES, INC. 1.00 30 meter SBF SEBASTIAN HIGHLANDS SEWER OPERATION 1.0495 0 2.50 EQUIVALENT RESIDENTIAL CONNECTION LOAD FACTOR meter SBG 0 1.0495 PROPOSED RATES AND REVENUE 5.00 0 NUMBER SBH ANNUALIZED METER FACTORED 1.0495 0 OF BILLS GROWTH 1 OF BILLS EQUIVALENT ER.C'S SBI 5 test year --------- --------- FACTOR (test year) FACTOR (test year! ----------------------------------- meter SBA 4,565 1.0495 4,791 1.00 4,791 meter SBB 0 1.0495 0 1.00 0 meter SBC 0 1.0495 0 1.00 0 meter SBD 0 1.0495 0 1.00 0 50.00 128 4,565 4,791 4,791 meter SBE 29 1.0495 30 1.00 30 meter SBF 0 1.0495 0 2.50 0 meter SBG 0 1.0495 0 5.00 0 meter SBH 0 1.0495 0 B.00 0 meter SBI 5 1.0495 5 16.00 84 meter SBJ 0 1.0495 0 25.00 0 meter SBK 9 1.0495 9 50.00 472 SBK KNOWN ADDS 3 50.00 128 ----------- 43 ----------- 48 ----------- 714 4,608 4,839 5,505 12W MAX GALLONS ANNUALIIED (000) GALLONS FACTORED Itest year) GALLONS -------------------- ---------- 24,652 25,872 25,812 0 0 0 0 0 0 0 0 0 24,652 25,872 25,B72 GALLONS (no) (maximum) 48 50 50 0 0 0 0 0 0 0 0 0 727 763 763 0 0 0 1,411 1,481 1,481 353 353 353 ---------- --------- ---------- 2,539 2,647 2,647 27,191 28,519 28,519 BASE FACILITY USAGE CHARGE PROPOSED GENERATED RATE PER 6ENERATED RATES REVENUE 1000 6. REVENUE ---------------------------------------- 121.89 104,872 $2.97 76,839 $21.69 0 $2.97 0 1"'1.89 0 $2.97 0 $21.89 0 $2.97 0 $104,872 $76,839 $21.89 666 12.97 150 $54.73 0 $2.97 0 $109.45 0 12.97 0 $175.12 0 $2.97 0 $350.24 1,838 $2.97 2,266 $547.25 0 $2.97 0 11,094.50 10,33B $2.97 4,398 $1,094.50 2,796 12.97 1,048 ------------ $15,636 ---------- $7,862 1120,510 $84,101 13 170) ------------- ---------- $120,523 $84,631 0 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS NATER OPERATIONS CONSTRUCTED STATEMENT OF OPERATIONS TWELVE MONTHS ENDED DECEMBER 31, 1985 Col. I Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Col. 7 ADJUSTMENTS CONSTRUCTED Line -------------------------------- AS CONSTRUCTED STATEMENT OF No. 1965 TEST YEAR - PROPOSAL PER BOOKS FUTURE USE OTHER ADJUSTED --------- ADJUSTMENTS ----------- OPERATIONS ----------- ---- I ------------------------ Operating Revenues --------- f 74,239 -------- ------------------- f 0 1 4,959 --------- --------- f 79,198 --------- f 103,297 --------- 11 162,495 --------- Operating Expenses: 2 Operation 76,485 0 8,850 67,335 0 87,335 • I Maintenance 13,654 0 420 14,082 0 14,082 4 Depreciation 129,788 (38,526) 11,600) 88,654 0 88,654 5 Taxes Other Than Income Taxes 10,116 (2,746) 0 15,370 0 15,370 rd u) 6 Provision For Income Taxes (70,105) 0 24,289 (45,8161 22,871 122,945) -------- wn -------- --------- --------- --------- -------- w xx M 7 160,938 (41,272) 31,959 159,624 22,011 182,495 1- H-------- y B Net Operating Income 194,699) --------- -------- 41,272 --------- 180,426) 80,426 O -------- -- --127,000) --------- -------- - -----0 M N F+ 9 Other Expense: N 10 Interest 679 (679) O --------- 0 -------- 0 -------- -------- 679 --------- --------- 0 1679) 0 --------- 0 -------- 0 -------- 11 Net Income -------- f (94,020) saaaaaza --------- --------- f 41,272 f 127,679) zazzza.. aaazaaaa. f (80,426) .....aria f 80,426 aazazaaz f 0 aaazzaaa • Col. 1 Line No. 1985 TEST YEAR - PROPOSAL ---- ------------------------ 1 Operating Revenues Operating Expenses: 2 Operation 3 Maintenance 4 Depreciation b U) CrJ 5 Taxes Other Than Income Taxes (D ax 6 Provision For Income Taxes lb N � H O ~ y 7 � N )—' 8 Net Operating Income N 9 Other Expense: 10 Interest 11 Net Income GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS SEVER OPERATIONS CONSTRUCTED STATEMENT OF OPERATIONS TVELVE MONTHS ENDED DECEMBER 31, 1985 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 CONSTRUCTED ADJUSTMENTS f 52,756 0 0 0 0 3,852 3,852 4B, 904 0 0 f 48,904 Col. 7 CONSTRUCTED STATEMENT OF OPERATIONS f 104,259 77,785 9,428 26,665 6,636 (18,255) 104,259 0 0 0 f 0 U E J ADJUSTMENTS --------------------------------AS PER BOOKS --------- FUTURE USE ---------- OTHER ADJUSTED f 48,500 -------- f 0 f --------- --------- 3,003 --------- --------- f 51,503 ---------- 71,411 0 8,313 79,783 9,151 0 211 9,428 66,730 (39,970) (951 26,665 10,717 14,081) 0 6,636 (46,326) -------- 0 --------- 24,219 --------- (22,107) --------- 111,744 (44,051) 32,714 100,407 163,244) -------- 44,051 --------- (29,1111 --------- (46,904) --------- 864 -------- --------- (864) 0 864 -------- 0 --------- --------- (864) --------- --------- 0 --------- f (62,380) f 44,051 f :a:a=aza= (30,5751 saes....= f (48,904) za=aaamaa Col. 6 CONSTRUCTED ADJUSTMENTS f 52,756 0 0 0 0 3,852 3,852 4B, 904 0 0 f 48,904 Col. 7 CONSTRUCTED STATEMENT OF OPERATIONS f 104,259 77,785 9,428 26,665 6,636 (18,255) 104,259 0 0 0 f 0 U E J • • GENERAL DEVELOPMENT UTILITIES, INC. 27 -Aug -86 SEBASTIAN HIGHLANDS NATER OPERATION BASE FACILITY AND USAGE CHARGE COMPONENTS 1985 TEST YEAR - PROPOSAL FACTORED ERC'S FACTORED GALLONAGE ASSIGNED PERCENTAGE NO. 9,579 NO. 55,427 CONSTRUCTED VOLUNTARY RATE BASE USAGE BASE COMPONENT USAGE COMPONENT TEST YEAR --------------------------------- ADJUSTMENTS TEST YEAR REDUCTION PROPOSAL FACILITY CHARGE FACILITY COST CHARGE COST OPERATION 6 MAINTENANCE EXPENSE ---------- -------------------- ---------- -------------------- ------------------- I SOURCE OF SUPPLY EXPENSES: Purchased water 0 0 0 0 0.001 100.001 0 $0.00 0 $0.00 Other source of supply exp. 36 1 37 37 100.001 0.001 37 $0.00 0 $0.00 2 PUMPING EXPENSES: 15,735 0 15,735 15,735 0.001 100.001 0 $0.00 15,735 10.28 3 TREATMENT EXPENSES: 47,819 1,648 49,527 49,527 0.001 100.00% 0 $0.00 49,527 $0.89 4 TRANSMISSION 7 DISTRIBUTION EXPENSES: 820 29 849 B49 0.001 100.001 0 $0.00 849 $0.02 5 CUSTOMER ACCOUNTS EXPENSES: 0 $0.00 Meter Reading Labor 3,041 106 3,147 3,147 100.001 0.001 3,147 $0.33 0 $0.00 Other customer account eXp. 7,050 240 7,290 7,290 50.001 50.001 3,645 $0.38 3,645 $0.07 6 ADMINISTRATIVE AND GENERAL EXPENSES: 17,578 --------- 7,254 ---------- 24,832 ----------- 24,832 ----------- 50.001 50.001 12,416 $1.30 12,416 $0.22 TOTAL OPERATION L MA1NT. EXPENSE 92,139 ========= 9,278 =zss=zzz== 101,417 sa=zsass=s= 101,417 --------- 19,245 --------- $2.01 --------- 82,172 --------- $1.48 DEPRECIATION EXPENSE 128,788 140,1341 88,654 z=zzzz===-a 88,654 100.001 0.001 ==sa===ss =====a==z 68,654 19.26 ========= 0 =ac===s=z $0.00 0 X AMORTIZATION EXPENSE 0 0 0 0 100.001 0.001 0 $0.00 0 $0.00 - --------- S0+ H TAXES OTHER THAN INCOME TAX N 1 GROSS RECEIPTS TAX 0 0 0 0 64.601 35.401(A) 0 $0.00 0 $0.00 0 lD y 2 FRANCHISE TAX, 493 0 493 493 64.601 35.40%(A) 319 $0.03 175 $0.00 t -h 3 PROPERTY T41 14,187 12,7461 11,441 11,441 100.00% 0.001 11,441 $1.19 0 10.00 N ry 4 OTHER TAXES 3,436 --------- 0 ---------- 3,436 ----------- 3,436 ----------- 50.001 50.00% 1,718 ------------------ $0.18 1,718 --------- $0.03 --------- TOTAL TAXES OTHER THAN INCOME 18,116 (2,7461 15,370 15,370 13,477 $1.41 1,893 $0.03 INCOME TAX EXPENSE (110,509) 164,920 46,411 69,356 122,9451 0.001 100.001 0 10.00 (22,945) 30.411 OPERATING EXPENSE 120,534 131,317 251,851 69,356 102,496 121,376 $12.67 61,120 11.10 OPERATING EARNIN65 - INTEREST 127,952 19,528 147,480 147,460 0 100.00% 0.001 0 $0.00 0 $0.00 EQUITY EARNINGS (174,247) 289,201 114,954 114,954 0 0.001 100.001 0 $0.00 0 $0.00 TOTAL REVENUE --------- 74,239 ---------- 440,046 ----------- 514,265 ---------- 331,789 ----------- 182,496 --------- --------- 121,376 $12.67 --------- 61,120 --------- $1.10 LESS MISC, OPERATING REVENUE 4,876 4,959 9,835 9,835 100.00% 0.00% 9,835 $1.03 0 $0.00 TOTAL BILLING REVENUE - RATES --------- 69,363 ---------- 435,087 ----------- 504,450 ---------- 331,789 ----------- 172,661 --------- --------- 111,541 $11.64 --------- 61,120 --------- $1.10 (A) Same percentage ratio as revenue produced • • 1985 TEST YEAR, - PROPOSAL SEWER RESIDENTIAL: 1) 5/8-3/4' 2) L' 3) 1 112" 4) 2" TOTAL RESIDENTIAL rd Tn n GENERAL SERVICE: W n x 1) 5/8-3!4" GENERAL DEVELOPMENT UTILITIES, INC. 1.00 21 1' () O H 1.0495 0 2.50 a by 3) 1 1/2' -P G H 4) 2' 0 1-3 5) 3" O 0 OF BILLS GROWTH H) N 6) 4' FACTOR tJ 7) 6' .P 1.0495 4,791 1.00 4,791 meter TOTAL GENERAL SERVICE SEWER RATE REVENUE IMMATERIAL DIFFERENCE TOTAL SEWER OFERATIDN meter SBE 29 1.0495 GENERAL DEVELOPMENT UTILITIES, INC. 1.00 30 meter SBF SEBASTIAN HIGHLANDS SEWER OPERATION 1.0495 0 2.50 EQUIVALENT RESIDENTIAL CONNECTION LOAD FACTOR meter 586 0 1.0495 PROPOSED RATES AND REVENUE 5.00 0 NUMBER SBH ANNUALIZED METER FACTORED 1.0495 0 OF BILLS GROWTH 4 OF BILLS EQUIVALENT ERC'S SBI 5 test year --------- --------- FACTOR (test year) FACTOR (test year) ----------------------------------- meter SBA 4,565 1.0495 4,791 1.00 4,791 meter SBB 0 1.0495 0 1.00 0 meter SBC 0 1.0495 0 1.00 0 meter SBD 0 1.0495 0 1.00 0 50.00 128 4,565 zzz zz z.zazz 4,791 4,791 oaea.eca__c .a.aaa.aaaa meter SBE 29 1.0495 30 1.00 30 meter SBF 0 1.0495 0 2.50 0 meter 586 0 1.0495 0 5.00 0 meter SBH 0 1.0495 0 8.00 0 meter SBI 5 1.0495 5 16.00 84 meter SBJ 0 1.0495 0 25.00 0 meter SBK 9 1.0495 9 50.00 471 SBK. KNOWN ADDS 3 50.00 128 ----------- 43 ----------- 4B ----------- 714 4,608 4,839 5,505 -zz=zzz zzzs az.a__a__az _zaza zzzzzz l2k MAIL GALLONS ANNUALIIED (000) GALLONS FACTORED Itest year) GALLONS ----------- --------- ---------- 24,562 25,777 25,777 0 0 0 0 0 0 0 0 0 24,562 25,777 25,777 zzz_azzzazz aszaaaazz :a az:.as.a GALLONS (no) (maximum) 48 50 50 0 0 0 0 0 0 0 0 0 727 763 763 0 0 0 1,411 1,481 1,481 353 353 353 ---------- --------- ---------- 2,539 2,647 2,647 27,101 28,424 28,424 _aaaaaa:aa aaaaaa:aa a_�..aa.aa BASE FACILITY USAGE CHARGE PROPOSED GENERATED RATE PER GENERATED RATES REVENUE 1000 G. REVENUE ---------------------------------------- 313.50 64,677 10.95 24,488 113.50 0 10.95 0 113.50 0 10.95 0 113.50 0 10.95 0 164,677 124,488 113.50 411 10.95 48 133.75 0 10.95 0 167.50 0 10.95 0 1108.00 0 10.95 0 1216.00 1,133 10.95 725 1331.50 0 10.95 0 1675.00 6,376 10.95 1,407 1675.00 1,724 10.95 335 ------------ $9,644 ---------- 12,515 114,321 127,003 19 (81) ------------- ---------- 174,340 126,916 0 0 pv Cn w n m cD N s; l7d N H O (D �-3 M N N BASE FACILITY USAGE CHARGE PROPOSED GENERATED RATE PER GENERATEO RATES REVENUE 1000 G. REVENUE --------------------------------------- $11.64 86,357 11.10 39,339 11.38 5,125 $29.10 0 $1.10 0 $1.38 0 $58.20 0 $1.10 0 11.38 0 $93.12 0 $1.10 0 11.38 0 $186.24 0 $1.10 0 $1.38 0 ---------------------- sB6,357 144,463 $11.64 1,583 $1.10 467 11.38 78 $29.10 0 11.10 0 41.38 0 $58.20 0 $1.10 0 $1.38 0 $93.12 0 $1.10 0 11.38 0 $186.24 2,601 11.10 2,179 $1.39 564 1291.00 0 $1.10 0 11.38 0 $582.00 15,714 $1.10 2,977 11.38 0 $582.00 5,238 $1.10 10,263 $1.39 0 ------------- ---------- $25,142 $16,528 $111,499 $60,991 42 129 ------------- ---------- $111,541 $61,120 • GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS WATER OPERATION EQUIVALENT RESIDENTIAL CONNECTION LOAD FACTOR PROPOSED RATES AND REVENUE 1995 TEST YEAR - PROPOSAL NUMBER ANNUALIZED METER FACTORED USAGE GALLONS ANNUALIIED FACTORED OF BILLS GROWTH I OF BILLS EDUIVALENT ERC'S LEVEL (000) GALLONS GALLONS WATER test year --------- FACTOR --------- (test year) FACTOR (test year) (test year) (000) RESIDENTIAL: ---------- ---------- ---------- --------- ---------- --------- ---------- 1) 518-314• Peter NBA 6,431 1.1537 7,419 1.00 7,419 10000 30,997 35,761 35,761 +10000 3,219 3,714 4,642 2> !' Peter WBB 0 1.1537 0 2.50 0 25000 0 0 0 +25000 0 0 0 3) 1 I!2" meter MBC 0 1.1537 0 5.00 0 50000 0 0 0 +50000 0 0 0 4) 2" meter WBD 0 1.1537 0 8.00 0 80000 0 0 0 +80000 0 0 0 5) 3" meter 0 1.1537 0 16.00 0 160000 0 0 0 ----------- +160000 0 0 0 TOTAL RESIDENTIAL 6,431 t.=,xxxt=„ ----------- 7,419 ,tt,xxxttxt ----------- 7,419 t=txxx„t=, ---------- 34,216 ttxxxtxt,x --------- 39,475 xxxtttttx ---------- 40,404 x=,xttttxx GENERAL SERVICE: 1) 518-3/4" meter MBE 118 1.1537 136 1.00 136 10000 368 425 425 +10000 49 57 71 2) 1' meter WBF 0 1.1537 0 2.50 0 25000 0 0 0 +25000 0 0 0 3) l 1/2" meter WBG 0 1.1537 0 5.00 0 50000 0 0 0 +50000 0 0 0 4) 2- meter WBH 0 1.1537 0 8.00 0 80000 0 0 0 +80000 0 0 0 5) 3' meter WBl 12 1.1537 14 16.00 224 160000 1,717 1,981 1,981 +160000 354 408 511 6) 4' meter WBJ 0 1.1537 0 25.00 0 250000 0 0 0 +250000 0 0 0 7) 6' meter WBK 23 1.1537 27 50.00 1,350 500000 2,346 2,707 2,707 +500000 0 0 0 6" meter WOK KNOWN ADDS 9 50.00 450 500000 9,330 9,330 9,330 ----------- +500000 0 0 0 TOTAL GENERAL SERVICE 153 ----------- 186 ----------- 2,160 ---------- 14,164 --------- 14,907 ---------- 15,023 WATER RATE REVENUE IMMATERIAL DIFFERENCE TOTAL WATER OPERATION 6,584 7,605 9,579 48,380 54,382 55,427 BASE FACILITY USAGE CHARGE PROPOSED GENERATED RATE PER GENERATEO RATES REVENUE 1000 G. REVENUE --------------------------------------- $11.64 86,357 11.10 39,339 11.38 5,125 $29.10 0 $1.10 0 $1.38 0 $58.20 0 $1.10 0 11.38 0 $93.12 0 $1.10 0 11.38 0 $186.24 0 $1.10 0 $1.38 0 ---------------------- sB6,357 144,463 $11.64 1,583 $1.10 467 11.38 78 $29.10 0 11.10 0 41.38 0 $58.20 0 $1.10 0 $1.38 0 $93.12 0 $1.10 0 11.38 0 $186.24 2,601 11.10 2,179 $1.39 564 1291.00 0 $1.10 0 11.38 0 $582.00 15,714 $1.10 2,977 11.38 0 $582.00 5,238 $1.10 10,263 $1.39 0 ------------- ---------- $25,142 $16,528 $111,499 $60,991 42 129 ------------- ---------- $111,541 $61,120 • OPERATION EXPENSE 1 SUPERVISION & LABOR 2 OPERATING SUPPLIES & EXPENSE 3 TRANSPORTATION EXPENSE TOTAL OPERATING EXPENSE MAINTENANCE EXPENSE I MAINT. OF BLDG & GROUNDS 2 MAINT. OF TREATMENT PLANT EQUIP. 3 MAINT. OF SEWAGE & COLL. SYSTEM TOTAL MAINTENANCE EXPENSE CUSTOMER ACCOUNTING & COLLECTION EXPENSE I ACCOUNTING & COLLECTING ro CA M 2 UNCOLLECTIBLE ACCOUNTS IL n X �q �r x TOTAL CUSTOMER ACCTING & COLLECT'N EXPENSE (D (D H GENERAL EXPENSE F- y 1 GENERAL OFFICE SALARIES O (D 2 GENERAL OFFICE SUPPLIES & ENP. �' [v 3 RENTS tv 4 OTHER, GENERAL EXPENSE TOTAL GENERAL EXPENSE DEPRECIATION EXPENSE AMORTIZATION EXPENSE TAXES OTHER THAN INCOME TAX I GROSS RECEIPTS TAX 2 FRANCHISE TAX 3 PROPERTY TAI 4 OTHER TAXES TOTAL TAXES OTHER THAN INCOME INCOME TAX EXPENSE OPERATING EXPENSE OPERATING EARNINGS - INTEREST EQUITY EARNINGS TOTAL REVENUE LESS MISC. OPERATING REVENUE TOTAL BILLING REVENUE - RATES GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS SEWER OPERATION BASE FACILITY AND USAGE CHARGE COMPONENTS 1985 TEST YEAR - PROPOSAL CONSTRUCTED TEST YEAR ADJUSTMENTS TEST YEAR --------------------------------- 23,393 913 24,206 32,109 190 32,299 1,511 50 1,561 57,013 1,053 58,066 ASSIGNED PERCENTAGE VOLUNTARY RATE BASE USAGE REDUCTION PROPOSAL FACILITY CHARGE ---------- --------- ----------- ---------- 24,106 100.001 0.001 32,299 0.00% 100.001 1,561 50.00% 50.001 5B4O66 27 -Aug -06 FACTORED ERC'S FACTORED GALLONAGE NO. 5,505 NO. 28,424 BASE COMPONENT USAGE COMPONENT FACILITY COST CHARGE COST -------------------- --------- --------- 24,206 14.40 0 $0.00 0 $0.00 32,299 $1.14 781 10.14 781 $0.03 24,987 $4.54 33,090 $1.16 1,420 49 1,469 1,469 100.001 0.001 1,469 $0.27 0 $0.00 7,172 245 7,417 7,417 100.001 0.001 7,417 11.35 0 $0.00 559 --------- 10 ------ --- 569 ----------- 569 100.001 0.001 569 $0.10 $0_00 • 9,151 304 9,455 - 9,455 ---- 9,455 $1.72 -0 0 - - $0.00 3,484 127 3,611 3,611 50.00% 50.003 1,806 $0.33 1,806 $0.06 320 11 331 331 50.001 50.001 166 10.03 166 $0.01 3,804 ====c===- - 138 ====a===O= 3,942 ___________ ----------- 3,942 _________:_ --------- 1,971 _________ --------- $0.36 ______=== --------- --------- 1,971 ===e==ev= --------- $0.07 --------- --------- L2,537 Be 2,615 2,625 50.001 50.001 1,313 10.24 1,313 $0.05 433 14 447 447 50.00I 50.001 224 10.04 224 10.01 0 0 0 0 100.001 0.001 0 10.00 0 $0.00 7,685 --------- 6,994 ---------- 14,679 ----------- 14,679 ----------- 50.001 50.001 7,340 11.33 7,340 $0.26 10,655 7,096 17,751 17,751 --------- 8,876 --------- $1.61 --------- B,876 --------- $0.31 66,730 140,065) 26,665 26,665 100.00% 0.001 -_----_-= 26,665 --------- $4.84 --------= 0 _-------- $0.00 0 0 0 0 100.001 0.001 --------- 0 --------- $0.00 --------- 0 --------- $0.00 -------- -- ---- - 0 0 0 0 73.421 26.5BI(A) 0 $0.00 0 10.00 0 0 0 0 73.42I 26.581(AI 0 $0.00 0 $0.00 8,227 (4,081) 4,146 4,146 100.00% 0.001 4,146 $0.75 0 10.00 2,490 --------- 0 ---------- 2,490 ----------- 2,490 50.001 50.00% 1,245 $0.23 1,245 $0.04 10,717 (4,0811 6,636 ----------- 6,636 --------- 5,391 --------- $0.96 --------- 1,245 --------- $0.04 (70,174) 73,637 3,463 21,718 --------- 118,2551 0.00% 100.001 --------- 0 --------- $0.00 --- ----- --------- (1B,2551 30.64) B7,896 36,081 125,977 21,718 104,258 77,344 114.05 26,916 10.95 62,511 (16,3291 46,182 46,182 D IDO.003 0.00% 0 10.00 0 10.0 (101,907) --------- 137,904 ---------- 35,997 ----------- 35,997 0 0.001 100.001 0 $0.00 0 $0.00 48,500 159,656 208,156 ---------- 103,B9B ----------- 104,258 --------- 77,344 --------- 114.05 --------- --------- 26,716 $0.95 0 --------- 3,003 ---------- 3,003 ----------- ---------- 3,003 ----------- 100.00% 0.00% 3,003 $0.55 0 $0.00 4-,500 156,653 205,153 103,898 101,255 --------- 74,340 --------- $13.50 --------- 26,916 --------- 10.95 10:23 AM Col. 6 Col. 7 GENERAL DEVELOPMENT UTILITIES, INC. 08127!86 RATE BASE BALANCE SEBASTIAN HIGHLANDS NATER OPERATIONS 6955MFR DEC. 31 REVENUE RATE BASE, NET OPERATING INCOME AND RATE OF RETURN ADJUSTMENT REVENUES --------- f 2,876,353 TWELVE MONTHS ENDED DECEMBER 31, 1985 --------- f 2,076,353 Col. 1 Col. 2 Col. 3 Col. 4 313,726 BALANCE 502,092 36,895 PER BOOKS ADJUSTMENTS Line 381 DEC. 31 --------------------------------- 0 No. RATE BASE 1985 FUTURE USE OTHER ---------- ---- 1 ----------------- Utility Plant in Service --------- f 4,241,230 ---------- f (1,332,4421 f (32,4351 2 Construction Work in Progress 462,542 0 1462,542) 3 Less:Accusulated Depreciation 450,892 (104,7311 (32,435) 4 ?ess:Contrib-In-Aid of Constr. 502,092 0 0 5 Accumulated Depreciation - CIAC 36,895 0 0 6 Working Capital 11,517 0 1,160 7 Materials and Supplies 3B1 0 0 B Less:Tar. Lag 0 0 0 9 Less:Customer Advances 90,212 0 ----------- 0 10 Total Rate Base -------- 1 3,709,369 ---------- f (1,227,7111 f (461,382) 11 Net Operating Income S (46,295) f 41,272 $ (19,9081 12 Pate of Return -1.25% Exhibit 3 Schedule 1 Page 1 of 5 Col. 5 Col. 6 Col. 7 ADJUSTED RATE BASE BALANCE REQUESTED AT DEC. 31 REVENUE REQUESTED 1985 ADJUSTMENT REVENUES --------- f 2,876,353 ---------- S --------- f 2,076,353 0 0 313,726 313,726 502,092 502,092 36,895 36,895 12,677 12,677 381 381 0 0 90,212 --------- --------- 90,212 --------- 1 2,020,275 f 0 f 2,020,275 1 (24,930) f 287,364 f 262,434 -1.23% 12.991 0 is 10:23 AM 08/27/86 695SAFR Col. 1 Col. 2 BALANCE PER BOOKS Line DEC. 31 No. RATE BASE 1985 1 Utility Plant in Service f 2,468,218 2 Construction Work in Progress 115,229 3 Less:Accuoulated Depreciation 331,488 4 Less:Contrib-In-Aid of Constr. 482,842 5 Accumulated Depreciation - CIAC 48,316 6 Working Capital 10,078 7 Materials and Supplies 60 8 Less:Tax Lag 0 9 Less:Custoser Advances 0 10 Total Rate Base f 1,827,571 II Net Operating Income f (39,396) 12 Rate of Return -2.162 Exhibit 3 Schedule 1 Page 2 of 5 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS SEWER OPERATIONS RATE BASE, NET OPERATING INCOME AND RATE OF RETURN TWELVE MONTHS ENDED DECEMBER 31, 1985 Col. 3 Cal. 4 Col. 5 ADJUSTED BALANCE DEC. 31 1985 f 1,224,828 0 168,878 482,842 46,316 11,152 60 0 0 S 632,636 ADJUSTMENTS --------------------------------- FUTURE USE OTHER f (1,240,5231 f (2,867) 0 (115,229) (159,743) (2,867) 0 0 0 0 0 1,074 0 0 0 0 0 0 f (1,080,780) f 1114,155) f 44,051 f (36,180) t (31,5251 -4.98% Col. 6 Col. 7 RATE BASE REDUESTED AT REVENUE REBUESTED ADJUSTMENT REVENUES ---------- f --------- f 1,224,828 0 168,878 482,B42 48,316 11,152 60 0 0 --------- f 0 --------- f 632,636 f 113,704 f 81,179 12.99% • 0 • GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS NATER AND SEWER OPERATIONS YEAR ENDED DECEMBER 31, 1985 NOTES TO RATE BASE ADJUSTMENTS Line No. Col. I Col. 2 Col. 3 FUTURE USE ---------------------------------- NATER SEWER I UTILITY PLANT IN SERVICE: ------------------------ 2 A. Adjustment to reduce adjusted plant by that portion considered held for future use. See Used and Useful Analysis for Test Year 1985. 3 B. Adjustment to reduce plant by that portion retired by test year-end but not yet removed from the books. 4 TOTAL UTILITY PLANT 1.4 SERVICE ADJUSTMENTS 5 CONSTRUCTION WORK IN PROGRESS ----------------------------- 6 A. Adjustment to remove Construction Work in Progress from rate base. 7 TOTAL CONSTRUCTION WORK. IN PROGRESS ADJUSTMENTS Exhibit 3 Schedule I Page 3 of 5 S 11,332,4421 f (1,240,523) Col. 4 Col. 5 OTHER ----------------------------- NATER SEWER ----------- ------- f (32,435) f (2,8671 -------------------- ---------- ---------- f (1,332,442) f (1,240,523) f (32,435) f (2,8671 f (462,542) f (462,542) f (115,229) f (115,2291 • 11 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS NATER AND SEWER OPERATIONS YEAR ENDED DECEMBER 31, 1985 NOTES TO RATE BASE ADJUSTMENTS Line No. Col. i Col. 2 Col. 3 Cot. 4 FUTURE USE OTHER NATER SEWER NATER ----------- ----------- ----------- I ACCUMULATED DEPRECIATION; ------------------------ 2 A. Adjustment to accumulated depreciation an that portion of plant considered held for future use. f 1104,731) t (159,743) 3 B. Adjustment to reduce accumulated depreciation by that portion of plant retired by test year-end but not yet removed from the books (See UPIS Adjustment B), 1 (32,435) 4 TOTAL ACCUMULATED DEPRECIATION ADJUSTMENTS f (104,731) f (159,743) t (32,435) Exhibit 3 Schedule I Page 4 of 5 Col. 5 SEWER f (2,867) f (2,867) • 10 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS NATER AND SEWER OPERATIONS YEAR ENDED DECEMBER 31, 1905 NOTES TO RATE BASE ADJUSTMENTS Line No. Cal. 1 Col. 2 Col. 3 Col. 4 Col. 5 FUTURE USE OTHER ---------------------------------- ------------------------------- MATER SEWER NATER SEWER ----------- ----------- ----------- ---------- I WORKING CAPITAL: 2 ------------------------ A. Adjustment to Working Capital due to Adjustments on Exhibit 2 Schedule 1, Pages 3 and 4 o4 B. Nater Sewer 3 --------- 0 6 M Adjustments f --------- 9,279 9,590 4 Working Capital Percent X --------- 12.51 X 12.51 -------- 5 Adjustment to Working Capital f 1,160 f 1,074 Exhibit 3 Schedule 1 Page 5 of 5 10 10'23 AM GENERAL DEVELOPMENT UTILITIES, INC. 08121rB6 SEBASTIAN HIGHLANDS NATER AND SEWER OPERATIONS 685SNFR COST OF CAPITAL COMPUTATION AS OF DECEMBER 31, 1985 Col. 1 Col. 2 Col. 3 Col. 4 Line No. ---- CLASS OF CAPITAL ---------------- AMOUNT --------- RATIO -------- COST -------- 1 Long Term Debt f 1,564,612 58.981 12.211 2 Customer Deposits 21,132 0.801 8.001 3 Common Stock Equity 626,108 23.601 14.951 4 Accumulated Deferred 1.T.C. 441,060 16.621 12.991 5 Total Capital' --------- f 2,652,911 ==_==_._= -------- 100.001 =____=== Exhibit 4 Schedule I Col. 5 WEIGHTED COST OF CAPITAL ?.241 0.061 3.531 2.161 12.991 ==:= 9 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS NATER, AND SEWER OPERATIONS COST OF CAFITAL COMPUTATION AS OF DECEMBER 31, 1985 Line ND. Col. I Col. 2 Cal, 3 I UTILITY COMMON STOCY. EQUITY COMPONENTS: -------------------------------------- 2 Total Funding provided by General Development Corporation 3 Sources of Funding through General Development Corporation; 4 Percent 5 Long Term Debt 71.421 6 Preferred Stock 0.001 Common Stock Equity 28.581 8 Accumulated Deferred Income Taxes 0.001 100.001 Exhibit 4 Schedule 2 Amount f 1,564,612 0 626,108 0 Y 2,190,719 Col. 4 ! 2,190,719 0 NOTE: Only that capital which is a potential source of funding to GDU-Sebastian Highlands is included above. Exhibit 4 Schedule 3 GENERAL DEVELDFMENT UTILITIES, INC. GENERAL DEVELOPMENT CORPORATION CLASS OF CAPITAL, RATIOS, AND COST RATES AS OF DECEMBER 31, 1985 Col. I Col. 2 Col. 3 Col. 4 Cul. 5 Col. 6 Col. 7 PRO WEIGHTED Line EFFECTIVE FORMA AS COST OF COST OF No. CLASS OF CAPITAL AMOUNT --------- ADJUST. ---------- ADJUSTED RATIO DEBT DEBT --------------------------------------- ---- 1 ---------------- Long Ter& Debt: (000) 2 Florida Ridge Utility 3 1568 (568) 0 O.00X 0.001 0.001 3 EDU Utility Debt 35,739 0 35,739 B351 6.841 0.611 4 Anrep Notes l and 2 10,186 110,1861 0 O.00X 0.00% 0.00% 5 Commercial Mortgages 1,862 (1,B621 0 0.001 0.00% 0.00% • 6 Purchase Money Mortgages 75 (75) 0 0.00X 0.001 0.00% 7 Anrep Southeast SSSCC 940 18401 0 0.001 0.001 O.00X B Capital Leases 5,619 (5,6191 0 0.001 0.00% O.00X 9 Utility Mortgage 10,000 110,0001 0 0.00% 0.001 0.001 10 Buyback Notes 213 12131 0 0.00% 0.001 0.001 11 Citibank Match Funded Facility 20,000 0 20,000 4.951 9.23% 0.46% 12 1985 GDC Debenture 149,961 0 I4B,981 36.88X 14.98% 5.521 13 1985 GOC Revolver B3,80O -------- 0 ---------- 83,900 20.14% 10.501 2.IBX ------------------ -------- ------- 11 Total Long Tera Debt 317,BB3 129,3631 288,520 71.421 12.271 8.767. ------- ------- 12 Preferred Stock 0 0 ------- ------- 0 0.001 13 Common Stock 115,437 0 115,437 28.591 14 Accumulated Deferred Intone Taxes 0 -------- 0 --------- 0 0.001 --------- ---------- 15 Total $ -433,320 --129,3631 -=403,957 ====100-001 • NOTE: Only that capital which is a potential source of funding to GDU-Sebastian Highlands is included above. Exhibit 4 Schedule 3 10:10 AM GENERAL DEVELOPMENT UTILITIES, INC. 06/21/66 SEBASTIAN HIGHLANDS RATE CASE 6956MFR 1985 TEST YEAR CALCULATION OF REFUNDABLE DEPOSITS ---------------------NATER------------------ ---------------------SEWER-------------- AVERAGE 3 MONTHS AMT OF CURRENT AVERAGE 3 MONTHS AMT OF CURRENT USE AVG. BILL DEPOSIT DEPOSIT USE AVG. BILL DEPOSIT DEPOSIT RESIDENTIAL: 1) 5/8-314' meter 5,321 1147.54 $150.00 $30.00 2) 1" and above - Three months estimated billings. GENERAL SERVICE: 1) 5/9-3/4' meter 3,537 1134.25 $130.00 $50.00 2) 1' and above - Three months estimated billings. 110 Lr) an M wax (D(D x p- H F- := Iz N H O t -h V7 ---------------------------------------- RESIDENTIAL: 11 5/8-3/4' meter 5,400 $110.22 1110.00 $30.00 2) 1' and above - Three ionths estimated billings. GENERAL SERVICE: 11 5/8-3/4' meter 1,655 $83.49 180.00 $50.00 2) 1' and above - Three months estimated billings. • • • GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS RATE CASE RECONNECTION CHARGES Cost Justification As of 7/1/86 Charge Charge During Regular After Regular Business hours Business Hours Initial Connection: Cust. Ser. Rep. 15 min. @ $8.27/hr. _ $ 2.068 $ 2.068 Service Tech 30 min. @ $8.76/hr = 4.380 6.570 Subtotal 6.448 8.638 Benefits 377/287 = 2.386 2.418 Total labor 8.834 11.056 Vehicle Use 30 min. @ $2.55/hr. = 1.275 1.275 TOTAL CHARGE $10.109 use $10.00 $12.331 use $12.50 Normal Reconnection: Cust. Ser. Rep. 30 min. @ $8.27/hr. _ $ 4.135 $ 4.135 Service Tech. 60 min. @ $8.76/hr. = 8.760 1.314 Subtotal 12.895 17.275 Benefits 377/28% = 4.770 4.837 Total Labor 17.665 22.112 Vehicle Use 60 min. @ $2.55/hr. = 2.550 2.550 TOTAL CHARGE 20.215 use $20.00 $24.662 use $24.50 Violation Reconnection: (same as Normal Reconnection above) Premise Visit Charge: Not applicable Note: A request for approval of miscellaneous service charges must be accompanied by supporting cost justification which clearly reflects the costs incurred in provision of the particular miscellaneous service and the requested charges are reasonable fees as required by our rules. (See attached schedule) EXHIBIT 5 Schedule 1 Page 2 of 3 0 • MISCELLANEOUS SERVICE CHARGES - COST JUSTIFICATION SEBASTIAN HIGHLANDS Initial Connection: An initial connection (turn -on) of a customer involves determination that a turn -on can be made, preparation of a Service Work Order, driving to customer's home, turn valve to permit flow of water, returning to Utility office with completed Service Work Order. Cust. Ser. Rep. = 15 mins. @ $8.27/hour (plus benefits) Serv. Tech. = 30 mins. @ $8.76/hour (plus benefits) Vehicle Use = 30 mins. @ $2.55/hour Normal Reconnection and Violation Reconnection: A reconnection by definition requires that the service first be turned off, and then turned on again. The procedure includes a determination that a turn-off and turn -on be made, preparation of a Service Work Order to both turn-off and turn -on, driving to the customer's home once, each for turn-off and turn -on, turning off valve and turning on again, and returning to the Utility Office with completed Service Work Orders. Cust Ser. Rep. _ Serv. Tech. _ Vehicle Use = Benefit Calculations: 30 mins. @ $8.27/hour 60 mins. @ $8.76/hour 60 mins. @ $2.55/hour a. FICA .0715 b. Unemployment Insurance .0170 C. Payroll Insurance .0726 d. Group Insurance .1069 e. Pension Plan .0128 .2808 use 28% f. Holidays .0346 g. Vacation .0385 h. Illness .014 .3679 use 37% Equipment (Vehicle) Calculations: a. Depreciation $8,000 vehicle - year life $2,000 annual depreciation $2,000 r 2080 hours = $0.96/hour b. Operation Expense $3,300 per vehicle per year $3,300 t 2080 hours = $1.59/hour Total vehicle cost 2.55/hour EXHIBIT 5 Schedule 1 Page 3 of 3 (plus benefits) (plus benefits) S. L. Stinson 8-25-86 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS RATE CASE 1485 TEST YEAR - PROPOSAL CALCULATIDN OF REFUNDABLE DEPOSITS ---------------------WATER------------------ AVERAGE 3 MONTHS AMOUNT OF CURRENT USE AVG. BILLIN DEPOSIT DEPOSIT -------- ---------------------------------- RESIDENTIAL: 1) 5/8-3/4" meter 5,321 1) 1' and above - Three months estimated billings. GENERAL SERVICE: 1) 5/8-3/4' meter 3,531 2) 1" and above - Three months estimated billings.. In Cr] n x �x (D H � tb G H N H (D Ln N � $51.42 $50.00 130.00 $48.12 150.00 $50.00 ---------------------SEWER-------------- AVERAGE 3 MONTHS AMOUNT OF CURRENT USE AVG. BILL1 DEPOSIT DEPOSIT -------- ------------------------------ RESIDENTIAL: 11 5/8-314' meter 5,381 154.75 $50.00 130.00 2) 1" and above - Three months estimated billings. GENERAL SERVICE: II 5/8-3/4" meter 1,655 $46.20 $50.00 $50.00 2) 1' and above - Three months estimated billings. Ll GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS RATE CASE 1985 TEST YEAR USED AND USEFUL ANALYSIS EXHIBIT 6 Page 1 of 17 0 INTRODUCTION 0 The purpose of this analysis is to identify the portion of the cost of the utility systems which should be considered "Used and Useful" and includable in rate base. The balance of the cost is considered plant held for "Future Use", which is excluded from rate base. Since the used and useful portion is included in rate base, it represents a revenue requirement component for which recovery is provided through the general rates. METHODOLOGY The first step of the used and useful analysis was to establish the total cost of the utility system which would be allocated between used and useful and future use. On the basis of an analysis of the Company's books and records, as well as an inspection of the water and sewer systems, the cost of each utility system for the test year ended December 31, 1985 was adjusted to reflect appropriate reclassifications and retire- ments. The total costs of the respective treatment plants are consistent with the rated capacities which are used to calcu- late the used and useful allocations. The retirements reflect the cost of all plant which was not in service. Historical and current operating data was examined along with the operational characteristics of the water and sewer systems, including: average and maximum demands, fire flow requirements, lost and unaccounted-for water, customer growth (for margin of reserve EXHIBIT 6 Page 2 of 17 0 0 calculations), customer density and system capacities. The interrelationship of the demand, capacity and growth data formed the basis for the allocation factors used to apportion the ad- justed plant costs. Where necessary, separate analyses were performed for specific facilities. SUMMARY OF RESULTS The categories of the utility systems subject to alloca- tion between Used and Useful and Future Use are: water production and treatment plant, transmission and distribution mains, sewage treatment plant, and collecting system. Of the adjusted cost of $4,241,230 for the water system, the total adjustment for future use is $1,332,442 (31.4%). Of the adjusted cost of $2,468,218 for the sewer system, the future use adjustment is $1,240,523 (50.30). A detailed summary by plant account is set forth on Schedule B for water and on Schedule G for sewer. These schedules show the cost as of December 31, 1985, by plant account and the adjustments for retirements and future use. The water system also shows future use for "direct" amounts, which represent specific items of plant which have been taken out of service but held for use again in the future as demands require. These specific items are considered 100% future use. EXHIBIT 6 Page 3 of 17 0 • WATER PRODUCTION AND TREATMENT Schedule B contains the used and useful allocation of the new treatment plant, by primary plant account. The source of supply structures, wells and land are considered 100% used and useful since they would be no less costly to serve only the existing customers. The other accounts are considered 78.6% used and useful, as calculated on Schedule C. The used and useful percentage is the ratio of the maximum day demand (adjusted for equivalent residential customers and a reserve margin) to the capacity of the system. The maximum day occurred on September 13, 1984, equating to a maximum day of 2.72 times the average day. Applying the ratio of the maximum/average day to the average day of 239 gallons per ERC produces a maximum day demand of 650 GPD, or 442,650 gallons for the 681 ERCs. Applying the reserve margin brings the maximum day to 526,311 GPD, which is 78.6% of the 670,000 GPD capacity of the treatment plant. WATER MAINS The allocation of transmission and distribution mains is set forth on Schedule D. In general, the transmission mains are considered 100% used and useful because they are necessary to meet demands throughout the system. There is, however, an exception which relates to the major transmission line in- stalled some 25,180 feet along Barber Street, Fellsmere Highway and Wimbrow Drive (referred to as the "BFW Extension"). EXHIBIT 6 Page 4 of 17 Special treatment was afforded that line so that instead of being considered 100% used and useful, as all other trans- mission lines, the used and useful percentage is calculated on the basis of the estimated cost of the minimum size main (8" diameter) that would be necessary to simply bring water to the areas served by that extension. The calculation is set forth on Schedule E. The calculation of the used and useful percentage for the distribution system is based on a density analysis of lots con- nected to the system and total lots on line (fronting main). The density analysis is based on a specific count of lots, with an allowance for lots within 500 feet of hydrants. Schedule F sets forth the reserve margin for water, which represents an allowance for capacity which must be available to meet short term growth -- and to continually provide safe and adequate service to all customers. The average growth rate is based on data from 1982 through 1985. A factor of 1.5 is applied to the average annual growth rate to allow for a reasonable construction and lag period. SEWAGE TREATMENT PLANT The used and useful allocation of the sewage treatment plant, by primary plant account, is set forth on Schedule H, and the calculation of the used and useful percentage is set forth on Schedule I. The used and useful percentage is the ratio of the maximum month demand (the demand sewage treat- ment plants are designed to meet) to the capacity of the EXHIBIT 6 Page 5 of 17 plant. The maximum month demand, on an ERC basis, is adjusted to include a reserve margin, resulting in a maximum month of 139,076 GPD or 46.40 of the plant capacity of 300,000 GPD. COLLECTION SYSTEM The allocation of collecting mains is set forth on Schedule J. Force mains are considered 100% used and useful, and gravity mains are allocated to used and useful based on the density of connected lots to lots on line, or 44.3%. The density analysis also takes into account the reserve margin. Schedule K shows the calculation of the reserve margin for the sewer system. EXHIBIT 6 Page 6 of 17 • GENERAL DEVELOPMENT UTILITIES, INC. Sebastian Highlands Rate Case - 1985 Year End Test Year Used and Useful Analysis - Water Summary By Plant Account ACCOUNT NO. DESCRIPTION 311 Source Structures 314 Wells 316 Supply Mains 321 Pump Structures 323 Other Prod. Equip. 325 Elec. Pump Equip. 330 Land 331 Treatment Struct. 332 Treatment Equip. 342 Distr. Reservoirs 343 Mains 82,110 Total Schedule A COST FUTURE USE USED AND AT 12/31/85 RETIREMENTS(C) DIRECT(D) ALLOCATED(E) USEFUL $ 58,787 $ $ $ $ 58,787 111,357 32,435 4,190 74,732 191 191 - 40,185 8,600 31,585 82,110 17,572 64,538 3,397 727 2,670 4,993 803 4,190 1,141,215 4,305 243,299 893,611 597,561 25,344 122,454 449,763 640,716 452,071 40,370 148,275 1,448,273(A) 412,516 1,035,757 $4.128,785(B) 32 435 $486,904 $845,538 $2,763,908 Notes: (A) Includes Classification of unclassified. (B) The remaining accounts, in the amount of $112,445, are 100% used and useful. (C) Includes the wells and facilities at the old WTP. (D) Includes the storage tank and pumping facilities at the old WTP. (E) New Water Treatment Plant. EXHIBIT 6 Page 7 of 17 • 0 GENERAL DEVELOPMENT UTILITIES, INC. Sebastian Highlands Rate Case - 1985 Year End Test Year Used and Useful Analysis - Water Allocation of New Water Treatment Plant ACCOUNT AMOUNT COST NO. DESCRIPTION AT 12/31/85 311 Source Structures $ 58,787 314 Wells 74,732 321 Pump Structures 40,185 323 Power Production Equipment 82,110 325 Pumping Equipment 3,397 330 Land 4,190 331 Treatment Structures 1,136,910 332 Treatment Equipment 572,217 342 Distr. Reservoirs 188,645 Total $2,161,173 USED AND USEFUL PERCENT (A) AMOUNT 100.0 7 $ 58,787 100.0 74,732 78.6 31,585 78.6 64,538 78.6 2,670 100.0 4,190 78.6 893,611 78.6 449,763 148,275 $1,728,151 Schedule B FUTURE USE 8,600 17,572 727 243,299 122,454 40,370 $433,022 Note:(A) Source of Supply Structures, Wells and Land are considered 1007 used and useful. See Schedule C for other accounts. EXHIBIT 6 Page 8 of 17 E 0 GENERAL DEVELOPMENT UTILITIES, INC. Sebastian Highlands Rate Case - 1985 Year End Test Year Used and Useful Analysis - Water New Water Treatment Plant - Used & Useful Percentage Plant Capacity Maximum Day Demand: Average Demand per ERC Ratio of Max./Avg. Day Maximum Demand per ERC Total ERC's Maximum Day Demand Reserve Margin (442,650 X 18.9%) (A) Total Maximum Day Demand Used and Useful Percentage Note: A See Schedule F. 239 GPD 2.72 650 GPD 681 EXHIBIT 6 Page 9 of 17 442,650 83,661 Schedule C 670,000 GPD 526,311 GPD 78.67 Distribution Main Transmission Main GENERAL DEVELOPMENT UTILITIES, INC. Sebastian Highlands Rate Case - 1985 Year End Test Year Used and Useful Analysis - Water Allocation of Transmission and Distribution Mains SIZE FOOTAGE 6" & Smaller 74,520 6" 2,220 8" 7,500 10" 1,700 12" 20,700 16" 14,400 121,040 COST USED AND USEFUL AT 12/31/85 % (A) AMOUNT $ 431,315 76.07 $ 327,799 15,431 100.0 15,431 54,100 100.0 54,100 25,517 100.0 25,517 438,238 59.4 260,313 483,672 352,597 $1,448,273 $1,035,757 (A) Allocation percentages are calculated on Schedule E. EXHIBIT 6 Page 10 of 17 Schedule D FUTURE USE $103,516 177,925 131,075 $412,516 0 0 Schedule E GENERAL DEVELOPMENT UTILITIES, INC. Sebastian Highlands Rate Case - 1985 Year End Test Year Used and Useful Analysis - Water Transmission and Distribution Mains - Used & Useful Percentages Distribution Main - 6" & Smaller: Total Lots on Lines 1,424 "Used & Useful" Lots: Connected Lots 531 Margin of Reserve (521 X 18.9%) 100 Hydrant Allowance (A) 451 1,082 Used & Useful Percentage - Distribution Main 76.0% Transmission Main All transmission mains are considered 100% used and useful, except the "Barber St, Fellsmere Hwy, Wimbrow Dr." transmission extension (BFW Extension) for which used and useful is based on the cost of a minimum size main, as follows: BFW TRANSMISSION Notes: (A) Lot within 500 front feet of a hydrant serving at least one connection.. (B) Based on Estimated cost of an 8" main. EXHIBIT 6 Page 11 of 17 Actual Used & Useful Size Footage Cost (Min. Cost) (B) 6" 2,220 $ 15,431 $ 15,431 12" 17,200 364,178 186,104 16" 5,760 193,541 62,323 25,180 $573,150 $263,858 ALL TRANSMISSION MAIN Used and Useful Costs Size Footage Total Cost BFW Ext. Other Main Total 7 6" 2,220 $ 15,431 $ 15,431 $ - $ 15,431 100.07 8" 7,500 54,100 -- 54,100 54,100 100.0 10" 1,700 25,517 -- 25,517 25,517 100.0 12" 20,700 438,238 186,104 74,060 260,164 59.4 16" 14,400 483,672 62,323 290,131 352,454 72.9 Total 46,520 $1,016,958 $263,858 $443,808 $707,666 Notes: (A) Lot within 500 front feet of a hydrant serving at least one connection.. (B) Based on Estimated cost of an 8" main. EXHIBIT 6 Page 11 of 17 0 0 GENERAL DEVELOPMENT UTILITIES, INC. Sebastian Highlands Rate Case - 1985 Year End Test Year Used and Useful Analysis - Water Calculation of Reserve Margin END CUSTOMERS 1982 445 1983 462 1984 492 1985 628 Average Percentage Growth Reserve Margin (1.5 X 12.67) NUMBER PERCENT 17 3.87 30 6.5 136 27.6 EXHIBIT 6 Page 12 of 17 12.67 18.97 Schedule F ACCOUNT NO 352 363 365 371 372 Notes: 0 • Schedule G GENERAL DEVELOPMENT UTILITIES, INC. Sebastian Highlands Rate Case - 1985 Year End Test Year Used and Useful Analysis - Sewer Summary of Plant Account (A) The remaining accounts in the amount of $87,610, are 100% used and useful. (B) Represents treatment equipment not in service. EXHIBIT 6 Page 13 of 17 COST FUTURE USED AND DESCRIPTION AT 12/31/85 RETIREMENTS USE USEFUL Collection Sewers $1,326,458 $ $ 677,036 $ 649,422 Elec. Pumping Equip. 30,067 16,116 13,951 Other Pumping Equip. 39,554 21,201 18,353 Treatment Structures 695,450 2,867 371,224 321,359 Treatment Equip. 289,079 154,946 134,133 Total $2,380,608(A) $2,867 (B)$1.240,523 $1,137.218 (A) The remaining accounts in the amount of $87,610, are 100% used and useful. (B) Represents treatment equipment not in service. EXHIBIT 6 Page 13 of 17 Schedule H GENERAL DEVELOPMENT UTILITIES, INC. Sebastian Highlands Rate Case - 1985 Year End Test Year Used and Useful Analysis - Sewer Allocation of Sewage Treatment Plant ACCOUNT COST USED AND USEFUL FUTURE NO DESCRIPTION AT 12/31/85 PERCENT(A) AMOUNT USE 363 Elec. Pumping Equip. $ 30,067 46.4% $ 13,951 $ 16,116 365 Other Pumping Equip. 39,554 46.4 18,353 21,201 371 Treatment Structures 692,583 46.4 321,359 371,224 372 Treatment Equipment 289,079 46.4 134,133 154,946 Total $1,051,283 $487,796 $563,487 Note: (A) See Schedule I. EXHIBIT 6 Page 14 of 17 • GENERAL DEVELOPMENT UTILITIES, INC. Sebastian Highlands Rate Case - 1985 Year End Test Year Used and Useful Analysis - Sewer Sewage Treatment Plant - Used and Useful Percentage Plant Capacity Maximum Month Demand Average Demand per ERC 174 GPD Ratio of Max./Avg. Month 1.54 Max. Demand per ERC 268 GPD Total ERC's 465 Maximum Month demand Reserve Margin (124,620 X 11.67) (A) Total Maximum Month Demand Used and Useful Percentage Note: (A) See Schedule K. EXHIBIT 6 Page 15 of 17 124,620 14,456 Schedule I 300,000 GPD 139,076 GPD 46.47 Force Mains Gravity Mains Total GENERAL DEVELOPMENT UTILITIES, INC. Sebastian Highlands Rate Case - 1985 Year End Test Year Used and Useful Analysis - Sewer Allocation of Collection Mains COST FOOTAGE AT 12/31/85 20,300 $ 110,954 48,800 1,215,504 69,100 $1,326,458 USED AND USEFUL PERCENT(A) AMOUNT 100.07 $110,954 44.3 538,468 $649,422 Schedule J FUTURE USE 677,036 $677,036 Note: (A) Force mains are considered 100% used and useful. Gravity mains are allocated according to density, as follows: Total Lots on Lines 961 Used and Useful Lots 382 Reserve Margin (382 X 11.67) 44 426 Used and Useful Percentage 44.37 EXHIBIT 6 Page 16 of 17 0 i Schedule K GENERAL DEVELOPMENT UTILITIES, INC. Sebastian Highlands Rate Case - 1985 Year End Test Year Used and Useful Analysis - Sewer Calculation of Reserve Margin 1982 321 -- -- 1983 334 13 4.07 1984 354 20 6.0 1985 400 46 13.0 Average Percentage Growth 7.7% Reserve Margin (1.5 X 7.7%) 11.6% EXHIBIT 6 Page 17 of 17 E U GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS WATER & SEWER DIVISION SCHEDULE OF SERVICE AVAILABILITY AND MAIN EXTENSION CHARGES WATER Plant Capacity Line Extension Reserve Capacity Meter Connection (3/4") Meter Connection (1") Meter Connection (1}") Meter Connection (2") SEWER Plant Capacity Line Extension Reserve Capacity PRESENT $ .86 per GPD 7.22 per foot 100.00 150.00 250.00 350.00 PRESENT $ 2.22 per GPD 11.98 per foot EXHIBIT 7 PROPOSED $ 2.44 per GPD 11.73 per foot .57 per gal. 100.00 150.00 250.00 350.00 PROPOSED $ 2.45 per GPD 12.46 per foot .53 per gal. • • o e 1 O O O P� 0 0 N 11 N M 1 H I . H . N .O .O 11 M'! m .O 11 N 11 ' 11 1' O O O H 11 N Y W Z 11 f N 11 m � m 11 11 11 11 V tW11 1 1 1 1 11 P P M 1 II M N 11 11 M Y 11 11 M U_ p (G(�� L I+ O 1 P- 1' H N N O O 11 N 11 � M J Y7 �i o m N 1 Q: I .O O i JJ n O S A 1 1 m I of n N 11 n f M u Z O. P �. � W 1 H I O O; O II - - 1 - 11 t m H 11 1 N 11 11 - o o .-. v r i s i i ri 1, o= .- II it ii W .r H U1 ; ry � .. „ I, -' ^+ Z 5 O U 1 N I 11 1 �� W J O ae L W W U � G Z. W Z �. p 1 1 Q I 11 M N N M ZZ ?. J C C W S Z 1.7 T p S .-� � Z C S ^. W J Z �. S Q U I Z Q 1 d � 2 G .¢-. Q W _ I ti J f- J Z �' C Z N O q tD 4 ¢m ¢ Z t U d' Q n 2 W � 2 W J 6 W Q: m Z W d �1 U W n s 1-- 1 p ¢ W iy � r- � .r cn ¢ a � s a � x �'' �-- z o > _ v v m a in — ui v 6 [n a 6 O _ In z If) m d Z O U .-. U U 2 m to � �. Z M W Z 6 U Z 2 2 6 6 M W- ti! N G Vf J Z ~ 4 4 O_ n. 1 � � � Z ~ m 4. U n. w 1 d Z U d >K _. o W Z m c.> Y W Z J ¢ W Ifl D 1+ J p W 2 Z W ¢ O d' U G. m C d W N~ � p S Z J 6 VI N� O � O Q L W = yy Q: 6 J 1 W � � to S _ W W J J [11 O O �- ¢ U N r. -a U d I d J a �. U d O Q' a: m ae _ � N tJl W ^ O 1 Z i -+ N H V h .p Imo. m P O r b m N �. M m m J S d �. G [D W W W LL H 1' 11 11 .p 11 11 M - W t 1 N j 1 II Y7 Y N N � 11 1 r r0 i i~J1 ` 1 .p Y 11 11 11 dl 1 1 11 N M II 11 M 11 M N N y U ti W W LL � 1 P P 1 X O 11 11'] ry 11 H N pmp 11 11 11 W W 2 1 6 Q W Q tr W W Q h - J J Q t f- m 4 ? a W Q W C U LL W U > = 1 J 2 p fD .r S Q Y7 Q W to U] W U N m N UI LL _ LL H � N O O 2 p Z Tt Y= U O W A W W W 4 m •• N O {p � � p 6 1 .... to ypj 1!9 d Ll W J O U O U GOC a O U IUj=j p m N O 2 aSl � W 0 0 I N m 1 II O N .O O 1 Y7 H 11 N 2 t �O . I P II O 11 N 11 M = Q! h N 11 M 11 O W P I m 1 I 1 N 11 11 N N N O O) P .p 11 11 �P i m ii 1111 ii N CD N 1 �'• II II 11 M N y r� N 11 O 11 11 1 11 11 11 N II 11 I II N N 11 11 11 11 N N K 11 1 II 11 11 N N N • A r Q) M N 1 . N 1 O 1 11 11 0 11 O N N 1 O H N 11 O 11 W x n u u N i u i n N N n n ii ii N x O 6 r J J O Z o J U ¢ W o m J ¢ W 6 W J ¢ W x W [D Z d W H to W U ¢ U U U d ¢ T Z Z v v Z 4 J J ¢ [O W J tL d O Q = 41 6 = ¢ d W W W W dW 4I N 41 Q H •-- N .N.. Z Vl •�.• 6 Z ¢ ¢ O 1 Z J Q Q 0 N N N P N N M N O OC N H O P 1 O P O U i W t!l 1 1 1 1 1 � X 11 1 11 11 1 N Y �• O C �+ H U 4. 1 i 1 1 � L + W Va cn 1 W � 1 1 II W W W LS � W fa Y D Z 1 W �- Q W 6 W W fll > W > O 4 G W O Z W J 2 W O Z U > f• W Q ti• W S J UI W U �l U 2 W J 6 d Z U C 6 J ¢ 6 W L O O LL If] U W iJl Z 6 � O U 4 U Q 1- J T W 2 ¢ Ifl W H Q F O W J O W U Q (!I 6 D t W W m Z Q 6 W N 4] U d O V d fP W U U O d W OG to O m f d d O Z W 0 ■E§S;§: _ . .4Z R . _ ■ - 7 ■ E e ■ ) k§§§ � &I §� m � � �. ■� O Lr) Ln O O O (n cn 0 0 0 O u'1 Ln o (n v, O O 0 0 0 In o c'l N Ln N O Lr)t-D 1� cr'1 Lf) 7 00 O 7 N N .-4 c'') Ln Lf) o 0 M O � cc*i II ^O O Lr) Ln O O O (n cn 0 0 0 O u'1 Ln O'N O O O C' n000 O(—G c+1 vl Ln N N •--� 1� .-a — 7 V),- )b O Lf) o 0 O O O U) cc*i II ^O O N O M cn �7 N CU OCD % cn- N N O� O c 4 19 O O cb H .G cq +i > b O Ln Ln O O O Ln x n c' 1 O 99 v N (O b � O N r01 U a a _ NCC)N •-� a r. 0a cyder .�-� O Ln L —4 > p} w cn 0 0 0 O u'1 Ln O n000 O(—G W CO 18 L' O C� 00 17 >4 .-a — 7 O U) II N CU OCD 4 19 O O cb H .G +i > b v N (O b � O N r01 U a a _ a r. 0a cyder L —4 > 4j rn a '+-I '� -4 7 w U r1 u u N n 3 a 3 0> aa) b u a -a G y (M)� L H a) cA 0 JJ Co (� O > a) O ,O cd > r-1 W i + a) 4Ja) -H > 0 ca aL CH z H O (1) "Cl 0 a) L U C!) .o co a) U O UO Pi (O = 4J 'b ).c OO " ca R.' L cC O CO q w�cnc� rl a) > enH Pr , o JJN UI oN Pi* L d � .-.N H � O H w [Oc EXHIBIT 8 Sche3ule 2 GENERAL DEVELOPMENT UTILITIES, INC. SEBASTIAN HIGHLANDS RATE CASE 1985 TEST YEAR CARRYING COST RECOVERY CHARGE (CCRC) EXHIBIT 9 Page 1 of 6 The Carrying Cost Recovery Charge (CCRC) is a form of rate which is necessary to pay for certain costs incurred by the utility in order to provide adequate service on a continuous basis. It is charged to future customers as they connect to the system. In the case of water and sewer utilities the rate -setting methodology in Florida has generally included the utilization of "used and useful" analyses which determine the portion of the cost of providing service that will be recoverable through the general rates. The remaining portion ("future use") is considered the cost necessary to meet the service requirements of future customers and, therefore, should not be paid by means of general rates to existing customers. The future use costs related to distribution mains are absorbed by the stockholder/developer. On the other hand, the future use costs related to "backbone" plant (production, treatment, etc.) represent prudent investments which are necessary to serve existing customers as well as new customers in the future -- for example, the backbone plant would be more costly, and resultant rates higher for all customers, if smaller size plants were built. In other states, such backbone plant is simply included in rate base, and the related costs are recovered through general rates. In fact, such treatment is also applicable in Florida to utilities other than water and sewer utilities. For water and sewer utilities in Florida, the Public Service Commission has recognized that future use backbone plant and related costs are prudent and should be recovered by means of a Carrying Cost EXHIBIT 9 Page 2 of 6 Recovery Charge applicable to future customers as a form of service avail - lability charge, Florida Cities Water Company, PSC Docket No. 820232-W, Order No. 12299 issued 7/27/83 and PSC Docket No. 830121-5, Order No. 12743 issued 12/8/83 and General Development Utilities - Port St. Lucie Division, PSC Docket No. 830421 -WS, Order No. 13659-A issued 10/2/84. This charge has also been approved for GDU systems by the Charlotte County and Hendry County Commissions and by the PSC in St. Johns County. This charge is collected from new customers at the time they connect to the system. The CCRC proposed by General Development Utilities in this case is calculated to recover investments and related costs associated with backbone plant, which have been allocated as future use costs, recoverable from future customers. The carrying costs include, with respect to only future use plant, return on net investment, depreciation, property taxes and related income and revenue taxes. The charge is established on a monthly basis for a multiple year period, adjusted as necessary to reflect carrying costs and compounding as set forth on the attached schedule. A statement of components of the charge, a diagram of the charge, and proposed CCRC rates follow. EXHIBIT 9 Page 3 of 6 STATEMENT OF COMPONENTS OF CARRYING COST RECOVERY CHARGE Carrying Cost Recovery Charge (CCRC) is composed of depreciation, property taxes, costs of capital and related income and revenue taxes pertaining to plant held for future customers. EXHIBIT 9 Page 4 of 6 6 PLANT USED AND USEFUL SERVING CURRENT CUSTOMER • i I PLA7kiTrAPArITY TO SERVE SERVE FUTURE ICUSTOMER UTILITY PLANT USED AND USEFUL I FUTURE USE PLANT Investment and costs are recovered Currently, future use through rate structure from current plant costs are not being customers. recovered except through reserve capacity fees. Future use plant costs are recovered through: a) The proposed CARRYING COST RECOVERY CHARGE (CCRC) which would recover depreciation, property taxes, and cost of carrying investment for future capacity from date of investment to the date of connection or customer commitment. b) RESERVE CAPACITY CHARGE recovers cost of depreciation, property tax, and carrying cost of investment from the date of customer commitment to date of usage. EXHIBIT 9 Page 5 of 6 GSEBCCRC 27 -Aug -86 FILING Col I GENERAL OEVELDPMENT UTILITIES, INC. CARRYING COST RECOVESY CHARGE SEBASTIAN HIGHLANDS DIVISION Col 2a Col 24 Cal 3 u, w ASSUMPTIONS: WATER 0 �-3 24 I COST OF QUALIFYING ASSETS f 459,963 26 2 ACCUMULATED DEPRECIATION S 88,886 28 3 NUMBER OF FUTURE CUSTOMERSIERC'S) 350 30 4 ANNUAL DEPRECIATION EXPENSE f 30,276 32 5 RATE OF RETURN 12.991 34 6 WEIGHTED COST OF EQUITY 3.537. 36 7 FEDERAL INCOME TAX RATE 34.001 36 B STATE INCOMF TAX RATE 5.501 40 9 ANNUAL PROPERTY TAX f 2,746 42 10 OTHER COSTS f 0 44 11 GROSS RECEIPTS TAX RATE 0.00% 46 12 47 ANNUAL PROPERTY TAX PER ERC t 13 14 15 COST OF QUALIFYING ASSETS(Iines 1 2) f 371,077 16 NUMBER OF FUTURE EAC'S(Line 3) 350 17 -------- 18 COST PER ERC(Line 15/line 16) f 1,060.22 p) rij 19 RATE OF RETURNIIine 5) 12.991 L X 20 -------- (D H 21 RATE OF RETURN PER ERC(Line IB x line 19) S 137.72 22 -_.=._.= u, w H 23 ANNUAL REDUCTION IN RETURN: 0 �-3 24 (RETURN TIMES DEPRECIATION EXPENSE 25 DIVIDED BY NUMBERS OF CUSTOMERS) f 26 27 28 FEDERAL INCOME TAX RATE(Line 71 29 STATE INCOME TAX RATE(Line 9) 30 31 COMPOSITE INCOME TAX RATE 32 33 PRETAX RATE OF RETURN 34 (EQUITY I TIMES TAX RATE/1 - TAX RATE 35 + AFTERTAX RATE OF RETURNI 36 TAX FACTOR 37 (AFTERTAX RETURN/ PRETAX RETURN) 36 39 ANNUAL DEPRECIATION EIPENSEILine 41 f 40 NUMBER OF FUTURE ERC'S(Line 3) 41 42 ANNUAL DEPRECIATION EXPENSE PER EAC f 43 44 ANNUAL PROPERTY TAI(Line 91 f 45 NUMBER OF FUTURE ERC'S(Line 3) 46 47 ANNUAL PROPERTY TAX PER ERC t SEWER 1 281,744 f 95,297 654 S 26,429 12.99X 3.53% 34.00% 5.50% t 4,081 f 0' 0.00% S 166,447 654 S 285.09 12.99X f 31.03 CALCULATION OF CARRYING COSTS PER ERC: YEAR UNFUNDED OTHER COSTS UNFUNDED ANNUAL DEPRECIATION EXPENSE(Col 2,Line 42) UNFUNDED ANNUAL PROPERTY TAX(Col 2,Line 47) SUBTOTAL UNFUNDED ANNUAL EXPENSEILines 2 # 3 + 4) UNFUNDED EXPENSES PRIOR YEAR(Prior Line 91 TOTAL UNFUNDED EXPENSES(Lines 6 t 7) RETURN ON EXPENSES PRIOR YEARICol 2,Line 25) RETURN ON PLANT CURRENT YEARICol 2,Line 21 - Line 121 EARNINGS PRIOR YEAR(Prior Line 17) COMPOUND EARNINGS FROM PRIOR YEAR(Line 14 x Cal 2,Line 19) TOTAL COMPOUNDED EARNINGSILines 12 f 13 a 14 t 151 EARNINGS EXPANSION FACTOR FOR TAI(Col 2,Line 31) REVENUE REQUIRED TO FUND EARNINGS(Lines 17 x 18) REVENUE REQUIRED TO FUND EXPENSES(Line 9) SUBTOTAL(Lines 20 t 21) FACTOR FOR GROSS RECEIPTS TAXI( - Cal 2,Line ll) 11.24 f 5.25 ==_===__ ===---== CARRYING COSTS PER ERC FOR YEAR(line 23/Line 24) 34.001 5.501 37.631 34.001 5.501 37.631 15.ITI 15.121 1.16 1.16 30,276 f 26,429 350 654 -------- -------- B6.5 f 40.41 2,746 1 4,081 350 654 -------- -------- 7.85 1 6.24 MONTHLY CHARGE ALLOCATION: AVERAGE TEST YEAR JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER MONTHLY AVERAGE Col 4 Col 5 Col 6 Cot 7 Col 8 WATER ------------------------------------- 1986 1981 1988 1989 1990 ------ ------ ------ ------ ------ f 0.00 0.00 0.00 0.00 0.00 86.50 86.50 86.50 86.50 86.50 7.95 7.85 7.85 7.85 7.85 ------ ------ ------ ------ ------ 94.35 94.35 94.35 94.35 94.35 0.00 94.35 188.70 283.05 377.40 S 94.35 IBB.70 283.05 377.40 471.75 ...... ...... ...... .===== =•==== S 0.00 11.24 22.47 33.71 44.95 137.72 126.48 115.25 104.01 92.77 0.00 137.72 293.33 469.15 667.82 0.00 11.89 38.10 60.94 86.75 ------ ------ -------------- ------- 137.72 293.33 469.15 667.B2 B92.29 1.16 1.16 1.16 1.16 1.16 ------ ------------- ------- ------- 160.30 341.42 546.07 771.31 1038.58 94.35 188.70 283.05 311.40 471.75 254.65 530.12 829.12 1154.71 1510.33 1.000 1.000 1.000 1.000 1.000 I 254.65 530.12 B29.12 1154.71 1510.33 f 137.94 403.B6 692.08 1005.48 1347.34 S 159.16 426.82 717.00 1032.61 1376.97 S 180.38 449.78 741.91 1059.75 1406.61 S 201.60 472.73 766.83 IOB6.88 1436.24 f 222.82 495.69 791.75 1114.01 1465.88 f 244.04 518.64 916.66 1141.14 1495.51 f 265.26 541.60 841.58 1168.21 1525.15 S 286.48 564.56 866.50 1195.41 1554.78 S 307.70 581,51 891.42 1222.54 1584.42 f 328.92 610.47 916.33 1249.67 1614.05 f 350.14 633.42 941.25 1276.80 1643.69 1 371.36 656.38 966.17 1303.93 1673.32 1 254.65 530.12 829.12 1154.71 1510.33 Col 9 Col 10 Col It Col 12 Col 13 SEWER ----------------------------- -------- 19B6 1981 19BB 1989 1990 f 0.00 0.00 0.00 0.00 0.00 40.41 40.41 40.41 40.41 40.41 6.24 6.24 6.24 6.24 6.24 ------ ------ ------ ------ ------ 46.65 46.65 46.65 46.65 46.65 0.00 46.65 93.30 139.95 186.60 ------ ------ ------ ------ ------ f 46.65 93.30 139.95 106.60233.25 f---0.00 -5.25 10.50 15.75 37.03 31.78 26.53 11.28 16.63 0.00 37.03 7B.B7 126.15 09.56 0.00 4.81 10.25 16.39 23.33 ------ ------ ------ ------ ------ 37.03 78.81 126.15 179.56 239.92 1.16 1.16 1.16 1.16 1.16 ------ ------ ------ ------ ------ 43.10 91.80 146.83 209.00 279.25 46.65 93.30 139.95 196.60 233.25 89.75 185.10 286.18 395.60 512.50 1.000 1.00D 1.000 1.000 1.000 f 89.75 185.10 286.78 395.60 512.50 1 48.62 141.40 240.18 345.72 459.92 f 56.09 149.35 248.65 354.79.:� f 63.57 157.29 257.12 363.86 44 f 11.05 165.24 265.60 171.93 499.15 f 78.53 173.18 274.07 382.00 497.89 1 B6.01 181.13 282.54 391.07 507.63 f 93.49 189.07 291.01 400.14 517.37 f 100.97 191.02 299.49 409.20 527.11 f 108.45 204.97 307.96 418.27 536.86 S 115.93 212.91 316.43 427.34 546.60 $ 123.41 220.86 324.91 436.41 556.34 f 130.89 22B.BO 333.38 445.48 566.OB f 89.75 185.10 2B6.78 395.60 512.50