Ord 1978-053 - Laserfiche WebLink

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6 magnitude every year. Therefore, we have reduced maintenance expenses during the test year by $19,470. Some additional adjust- ments were made to expenses to reflect the recently legislated decrease in the corporate income tax rates from 48% to 46% and to restate some of the proforma adjustments proposed by the Company. I We have made adjustments to net operating income to include interest on customer deposits as an expense, reduce maintenance and deprecia- tion expenses, reduce income tax expenses and reflect reductions in various proforma adjustments proposed by the Company. After making these adjustments and the related income tax effect, we arrive at $49,593 of net operating income for the test year. Our adjustrr~nts are explained in more detail below: Maintenance expense - Southern Cross, Inc. - Southern Cross, Inc. conducted a leakage detection and repair survey in 1977 at a cost of $17,990. Another survey is planned for 1979" The two year delay suggests spreading the cost over two years. This results in a decrease in maintenance expense of $8,9'35. I Maintenance - Relocations due to Public Facility Improvements - The Company incurred $26,377 in the test year for expenses related to relocations that occurred due to the City I S remodel- ing and renovating of streets and drainage systems. The Company incurred $21,329 in 1976 for these relocations but none in 1978. HOvrever, the Company expects the projects to continue over the next several years. We are allowing a normalized amount of $15,902 for the test year by taking the average of the expenses incurred over the past three year's. This necessitates an adjustment to decrease maintenance expenses by $10,475 ($26,377 - $15,902). . Interest on Customer Deposits - Ide have deducted Custome]' Deposits in the amount of $34,339 from the rate base, there- fore, we must include the interest on these deposits in the cost of service in the amount of $2,060.