CLASS "A" OR "B" WATER AND/OR WASTEWATER UTILITIES. (Gross Revenue ofmore Than $200,000 Each) ANNUAL REPORT. Certificate Number(s) Submitted To The

Transcription

1 ~~~4 CLASS "A" OR "B" WATER AND/OR WASTEWATER UTILITIES (Gross Revenue ofmore Than 2, Each) ANNUAL REPORT Pc c. OF WS63817 AR William J. Deas Southlake Utilities, Inc River Blvd. Jacksonville, FL Certificate Number(s) Submitted To The STATE OF FLORIDA FOR THE YEAR ENDED DECEMBER 31, _[_O_J 1,.;;_ ::... CJ CJ. ;.; ~. "'",... ' r1... :... ~... Lo ~ ).. ' l,...,_.. = r,.::.: c:;:, ::1> c " C) :;;;.o. :;:o (:"') ~~'( ' c::.1 c:~ '...,. <. ::::>.. ::3!: '. ) '..... ;, ' '' <~ ~.. ;;:..:.,_.1., ' ""' ' Form PSC/AFD 3W (Rev. 12/99)

2 CERTIFICATION State of Florida County of Lake Jeffrey Cagan (Name of Affiant) makes oath and says that he is President/Director (Official Title of Affiant) of Southlake Utilities Inc. (Exact Legal Title or Name of Respondent) that he/she has examined the foregoing report; that to the best of his knowledge, information, and belief, all statements of fact contained in the said report are true and the said report is a correct statement of the business affairs of the above named respondent in respect to each and every matter set forth therein during the period from and including January 1, 217, to and including December 31, 217. ~{nature of Affiant) Subscribed and sworn to before me, a f'l<j~))?\l..'o\~ \ ' in and for the State and County named, this _.!\w\o,.,"""t...' day of ~:ij!lf',._,).., 218. My commission expires \ 'J..."6 ~'A.

3 General Instructions 1. Prepare this report in conformity with the 1996 National Association of Regulatory Commissioners Uniform System of Accounts for Water and/or Wastewater (USOA). 2. Interpret all accounting words and phrases in accordance with the USOA. 3. Complete each question fully and accurately, even if it has been answered in a previous annual report. Enter the word "None" where it truly and completely states the fact. 4. For any question, section, or page which is not applicable to the respondent enter the words "Not Applicable". Do not omit any pages. 5. Where dates are called for, the month and day should be stated as well as the year. 6. All schedules requiring dollar entries should be rounded to the nearest dollar unless specifically indicated. 7. Complete this report by means which result in a permanent record, such as by computer or typewriter. 8. If there is not enough room on any schedule, an additional page or pages may be added provided the format of the added schedule matches the format of the schedule with not enough room. Such a schedule should reference the appropriate schedules, state the name of the utility, and state the year of the report. 9. If it is necessary or desirable to insert additional statements for the purpose of further explanation of schedules, such statement should be made at the bottom of the page or an additional page inserted. Any additional pages should state the name of the utility, the year of the report, and reference the appropriate schedule. 1. For water and wastewater utilities with more than one rate group and/or system, water and wastewater pages should be completed for each rate group and/or system group. These pages should be grouped together and tabbed by rate group and/or system. 11. All other water and wastewater operations not regulated by the Commission and other regulated industries should be reported as "Other than Reporting Systems". 12. Financial information for multiple systems charging rates which are covered under the same tariff should be reported as one system. However, the engineering data must reported by individual system. 13. For water and wastewater utilities with more than one system, one (1) copy ofworkpapers showing the consolodation of systems for the operating sections, should be filed with the annual report. 14. The report should be filled out in quadruplicate and the original and two copies returned by March 31, of the year following the date of the report. The report should be returned to: Florida Public Service Commission Division of Water and Wastewater 254 Shumard Oak Boulevard Tallahassee, Florida The fourth copy should be retained by the utility.

4 TABLE OF CONTENTS Executive Summary Schedule Page Schedule Page Certification E1 Business Contracts With Officers, Generallnformatiom E2 Directors and Affiliates E7 Directory of Personnel Who Contact Affiliation of Officers & Directors E8 the Florida Public Service Commission E3 Businesses Which Are A Byproduct, Company Profile E4 Coproduct or Joint Product Result Parent/Affiliate Organization Chart E5 of Providing Service E9 Compensation of Officers & Directors E6 Business Transactions With Related Parties Part I and II E1 Financial Section Schedule Page Schedule Page Comparative Balance Sheet Assets Bonds F15 and Other Debits F1 Statement of Retained Earnings F16 Comparative Balance Sheet Equity Advances from Associated Companies F17 Capital and Liabilities F2 Other Long Term Debt F17 Comparative Operating Statement F3 Notes Payable F18 Year End Rate Base F4 Accounts Payable to Assoc. Companies F18 Year End Capital Structure F5 Accrued Interest and Expense F19 Capital Structure Adjustments F6 Misc. Current & Accrued Liabilities F2 Utility Plant F7 Advances For Construction F2 Utility Plant Acquisition Adjustments F7 Other Deferred Debits F21 Accumulated Depreciation F8 Contributions In Aid Of Construction F22 Accumulated Amortization F8 Accumulated Amortization of CIAC F22 Regulatory Commission Expense Reconciliation of Reported Net Income Amortization of Rate Case Expense F9 with Taxable Income for FIT F23 NonUtility Property F9 Special Deposits F9 Investments and Special Funds F1 Accounts and Notes Receivable Net F11 Accounts Receivable from Assoc. Companies F12 Notes Receivable from Assoc. Companies F12 Misc. Current & Accrued Liabilities F12 Unamortized Debt Discount/Exp/Premium F13 Extraordinary Property Losses F13 Miscellaneous Deferred Debits F14 Capital Stock F15 ii

5 TABLE OF CONTENTS Water Operation Section Schedule Page Schedule Page Water Listing of System Groups W1 CIAC Additions/Amortization W8 Year End Water Rate Base W2 Water Operating Revenue W9 Water Operating Statement W3 Water Utility Expense Accounts W1 Water Utility Plant Accounts W4 Pumping and Purchased Water Statistics, Basis for Water Depreciation Charges W5 Source Supply W11 Analysis of Entries in Water Depreciation Water Treatment Plant Information W12 Reserve W6 Calculation of ERG's W13 Contributions in Aid of Construction W7 Other Water System Information W14 Sewer Operation Section Schedule Page Schedule Page Wastewater Listing of System Groups S1 CIAC Additions/Amortization S8 Year End Wastewater Rate Base S2 Wastewater Operating Revenue S9 Wastewater Operating Statement S3 Wastewater Utility Expense Accounts S1 Wastewater Utility Plant Accounts S4 Calculation of ERG's S11 Basis for Water Depreciation Charges S5 Wastewater Treatment Plant Information S12 Analysis of Entries in Wastewater Other Wastewater System Information S13 Depreciation Reserve S6 Contributions in Aid of Construction S7 iii

6 EXECUTIVE SUMMARY

7 CERTIFICATION OF ANNUAL REPORT DECEMBER 31,217 I HEREBY CERTIFY, to the best of my knowledge and belief: YES NO ( x ) ( ) 1. The utility is in substantial compliance with the Uniform System of Accounts prescribed by the Florida Public Service Commission YES NO ( x ) ( ) 2. The utility is in substantial compliance with all applicable rules and orders of the Florida Public Service Commission YES NO ( x ) ( ) 3. There have been no communications from regulatory agencies concerning noncompliance with, or deficiences in, financial reporting practices that could have a material effect on the financial statement of the utility. YES NO ( x ) ( ) 4. The annual report fairly represents the financial condition and results of operations of the respondent for the period presented and other information and statements presented in the report as to the business affairs of the respondent are true, correct and complete for the period for which it represents. Items Certified (x) (x) (x) (x) ()(}(}(} * * Each of the four items must be certified YES or NO. Each item need not be certified by both officers. The items being certified by the officer should be indicated in the appropriate area to the left of the signature. NOTICE: Section 837.6, Florida Statutes, provides that any person who knowingly makes a false statement in writing with the intent to mislead a public servant in the performance of his duty shall be guilty of a misdeameanor of the second degree E1

8 ANNUAL REPORT OF: COUNTY: Lake Southlake Utilities, Inc. Date: December 31, 217 (Exact Name of Utility) List below the exact mailing address of the utility for which normal correspondence should be sent: Southlake Utilities, Inc Cagan Crossings Boulevard Suite #2 Clermont, Florida Telephone: (352) Fax Number: (352) Sunshine State OneCall of Florida, Inc. Member Number: SUI476 Name and address of person to whom correspondence concerning this report should be addressed: David denagy DBN Management 25 Seamist Court Ponte Vedra Beach, FL 3282 Telephone: (94) List below the address of where the utility's books and records are located: Southlake Utilities, Inc Cagan Crossings Boulevard Suite #2 Clermont, Florida Telephone: (352) List below any groups auditing or reviewing the records and operations: Date of original organization of the utility: August 27, 199 Check the appropriate business entity of the utility as filed with the Internal Revenue Service: [ ] Individual [ l Partnership [ ] Sub S Corporation [X ] 112 Corporation List below every corporation or person owning or holding directly or indirectly 5 percent or more of the voting securities of the utility: Percent Name Ownership 1. Richard Driehaus 73.43% 2. Jeffrey Cagan 22.54% E2

9 DECEMBER 31,217 DIRECTORY OF PERSONNEL WHO CONTACT THE FLORIDA PUBLIC SERVICE COMMISSION NAME OF TITLE ORGANIZATIONAL COMPANY OR UNIT REPRESENTATIVE (1 )(2) POSITION TITLE (3) Jeffrey Cagan President Soutlake Utilities, Inc. William J. Deas Attorney William J. Deas, P.A. (94) Randy Corbin Consultant The Ridgetop Group (352) David denagy Consultant DBN Management, LLC (94) USUAL PURPOSE FOR CONTACT WITH COMMISSION Operations & Administration Legal & Regulatory Administration & Engineering Accounting (1) Also list appropriate legal counsel, accountants, and others who may not be on general payroll. (2) Provide individual telephone numbers if the person is not normally reached at the company. (3) Name of company employed by if not on general payroll. E3

10 COMPANY PROFILE DECEMBER 31,217 Provide a brief narrative company profile which covers the following areas: A. Brief company history B. Public services rendered C. Major goals and objectives D. Major operating divisions and functions E. Current and projected growth patterns F. Major transactions having a material effect on operations Southlake Utilities, Inc. was organized in 199 for the sole purpose of providing water and wastewater service to the southeast corner of Lake County and the surrounding area. The company has continued to provide safe, adequate service to its customers in a very rapidly growing service area. The Company's goal is to continue to expand its operations and facilities to meet all regulatory, environmental and service requirements of both the water and wastewater divisions. The Company currently provides sevice to 3,28 metered customers. The original planned development anticipates the Company providing service to approximately 13,75 metered customer units when complete system buildout is reached. There are currently no transactions pending that will have a major impact on the Company's operations and performance. E4

11 PARENT I AFFILIATE ORGANIZATION CHART DECEMBER 31, 217 COMPLETE BELOW AN ORGANIZATIONAL CHART THAT SHOWS ALL PARENTS AND SUBSIDIARIES OF THE UTILITY. THIS CHART MUST ALSO SHOW THE RELATIONSHIP BETWEEN THE UTILITY AND THE AFFILIATES LISTED ON E7, E1(a),AND E1(b). Please refer to schedule E2. E5

12 DECEMBER 31, 217 COMPENSATION OF OFFICERS For each officer, list the time spent on respondent as an officer compared to time spent on total business activities and the compensation received as an officer from the respondent. NAME TITLE %OF TIME SPENT AS OFFICER OF UTILITY OFFICERS SALARY Jeffrey Cagan President 25% William J. Deas Secretary Less than 1% COMPENSATION OF DIRECTORS For each director, list the number of director meetings attended by each each director and the compensation received as a director from the respondent. NAME TITLE NUMBER OF DIRECTORS MEETINGS ATTENDED DIRECTORS SALARY Jeffrey Cagan Director 1 William J. Deas Director 1 E6

13 December 31, 216 BUSINESS CONTRACTS WITH OFFICERS, DIRECTORS AND AFFILIATES List all contracts, agreements, or other business arrangements* entered into during the calendar year (other than compensation related to position with Respondents) between the Respondent and officer and director listed on page E6. In addition, provide the same information with respect to professional services for each firm, partnership, or organization with which the officer or director is affiliated. NAME OF OFFICER, DIRECTOR OR AFFILIATE IDENTIFICATION OF SERVICE OR PRODUCT AMOUNT NAME AND ADDRESS OF AFFILIATED ENTITY Not Applicable * Busmess Agreement, for th1s schedule, shall mean any oral or wntten bus mess deal which binds the concerned parties for products or services during the reporting year or future years. Although the Respondent and/or other companies will benefit from the arrangement, the officer or director is, however, acting on his behalf or for the benefit of other companies or persons. E7

14 DECEMBER 31,217 AFFILIATION OF OFFICERS AND DIRECTORS For each of the officials listed on page E6, list the principle occupation or business affiliation and all affiliations or connections with any other business or financial organization, firms, or partnerships. For purposes of this part, an official will be considered to have an affiliation with any business or financial organization, firm or partnership in which he is an officer, director, trustee partner, or a person exercising similar functions. PRINCIPLE OCCUPATION OR AFFILIATION NAME AND ADDRESS BUSINESS OR OF AFFILIATION NAME AFFILIATION CONNECTION OR CONNECTION Jeffrey Cagan Southlake Utilities, Inc. Partner Cagan Management President/Director 3856 Oakton Street Skokie, IL 676 William J. Deas Southlake Utilities, Inc. Attorney William J. Deas, P.A. Secretary/Director 2215 River Boulevard Jacksonville, FL 3224 E8

15 DECEMBER 31, 217 BUSINESSES WHICH ARE A BYPRODUCT, COPRODUCT OR JOINT PRODUCT RESULT OF PROVIDING WATER OR WASTEWATER SERVICE Complete the following for any business which is conducted as a byproduct, coproduct or joint product as a result of providing water and sewer service. This would include any business which requires the use of utility land and facilities. Examples of these types of businesses would be orange groves, nurseries, tree farms, fertilizer manufacturing, etc. This would not include any business for which the assets are properly included in Account 121 Non utility Property along with the associated revenues and expenses segregated out as nonutility also. BUSINESS OR ASSETS REVENUES EXPENSES CONDUCTED BOOK COST ACCT. REVENUES OF NO. GENERATED ASSETS ACCT. NO. EXPENSES INCURRED ACCT. NO. None E9

16 DECEMBER 31, 217 BUSINESS TRANSACTIONS WITH RELATED PARTIES List each contract, agreement, or other business transaction exceeding a cumulative amount of 5 in any one year, entered into between the Respondent and a business or financial organization, firm, or partnership named on page E2 and E6 identifying the parties, amounts, dates and product, asset, or service involved. Part I. Specific Instructions: Services and Products Received or Provided 1. Enter in this part all transactions involving services and products received or provided. 2. Below are some types of transactions to include: management, legal and accounting services computer services engineering & construction services repairing and servicing of equipment material and supplies furnished leasing of structures, land and equipment all rental transactions sale. purchase or transfer of various products ANNUAL CHARGES NAME OF COMPANY OR RELATED PARTY DESCRIPTION SERVICE AND/OR NAME OF PRODUCT CONTRACTOR AGREEMENT EFFECTIVE DATES (P)urchased or (S)old (a) (b) (c) (d) AMOUNT (e) None E1(a)

17 BUSINESS TRANSACTIONS WITH RELATED PARTIES (cont'd) DECEMBER 31,217 Part II. Specific Instructions: Sale, Purchase and Transfer of Assets 1. Enter in this part all transactions relating to the purchase, sale or transfer of assets. 2. Below are examples of some types of transactions to include: purchase, sale or transfer of equipment purchase, sale or transfer of land and structures purchase, sale or transfer of securities noncash transfers of assets noncash dividends other than stoclk dividends writeoff of bad debts or loans 3. The columnar instructions follow: (a) Enter name of related party or company, (b) Describe briefly the type of assets purchased, sold or transferred. (c) Enter the total received or paid. lndicate purchase with "P" and sale with "S". (d) Enter the net book cost for each item reported. (e) Enter the net profit or loss for each item (column (c) column (d)). (f) Enter the fair value for each item reported. In space below or in a supplemental schedule, describe the basis used to calculate fair market value. NAME OF COMPANY OR RELATED PARTY (a) DESCRIPTION OF ITEMS (b) SALE OR PURCHASE PRICE (c) NET BOOK VALUE (d) GAIN OR LOSS (e) FAIR MARKET VALUE (f) None E1(b)

18

19 DECEMBER 31, 217 COMPARATIVE BALANCE SHEET ASSETS AND OTHER DEBITS ACCT. REF. PREVIOUS NO. ACCOUNT NAME PAGE YEAR (a) (b) (c) (d) CURRENT YEAR (e) UTILITY PLANT 1116 Utility Plant F7 16,565, Less: Accumulated Depreciation and Amortization F8 (7,585,522) Net Plant 8,979, Utility Plant Acquisition Adjustments (Net) F7 116 Other Utility Plant Adj. Total Net Utility Plant 8,979,772 16,737,774 (7,897,739) 8,84,35 8,84,35 OTHER PROPERTY AND INVESTMENTS 121 Nonutility Property F9 122 Less: Accumulated Depreciation and Amortization Net Nonutility Property 123 Investment In Associated Companies F1 124 Utility Investments F1 125 Other Investments F Special Funds F1 Total Other Property & Investments CURRENT AND ACCRUED ASSETS 131 Cash 1,915, Special Deposits F9 133 Other Special Deposits F9 134 Working Funds 135 Temporary Cash Investments Accounts and Notes Receivable, Less Accumulated Provision for Uncollectible Accounts F11 465, Accounts Receivable from Associated Companies F Notes Receivable from Associated Companies F Material and Supplies 161 Stores Expense 162 Prepayments 171 Accrued Interest and Dividends Receivable 172 Rents Receivable 173 Accrued Utility Revenues 174 Misc. Current and Accrued Assets F12 756,69 Total Current and Accrued Assets 3,137,13 79,338 43,91 756,69 1,896,317 F1 (a)

20 DECEMBER 31, 217 COMPARATIVE BALANCE SHEET ASSETS AND OTHER DEBITS ACCT. REF. PREVIOUS NO. ACCOUNT NAME PAGE YEAR (a) (b) (c) (d) CURRENT YEAR (e) DEFERRED DEBITS 181 Unamortized Debt Discount & Expense F Extraordinary Property Losses F Preliminary Survey & Investigation Chgs FAS 19 Regulatory Assets 184 Clearing Accounts 185 Temporary Facilities 186 Misc. Deferred Debits F14 812, Research & Development Expenditures 19 Accumulated Deferred Income Taxes Total Deferred Debits 812,258 TOTALASSETSAND OTHER DEBITS 12,929,42 8,58 8,58 11,536,41 NOTES TO THE BALANCE SHEET The space below is provided for important notes regarding the balance sheet. F1(b)

21 DECEMBER 31,217 COMPARATIVE BALANCE SHEET EQUITY CAPITAL AND LIABILITIES ACCT. REF. PREVIOUS NO. ACCOUNT NAME PAGE YEAR (a) (b) (c) (d) CURRENT YEAR (e) EQUITY CAPITAL 21 Common Stock Issued F15 (7,5) 24 Preferred Stock Issued F15 22,25 Capital Stock Subscribed 23,26 Capital Stock Liability for Conversion 27 Premium on Capital Stock 29 Reduction in Par or Stated Value of Capital Stock 21 Gain on Resale or Cancellation of Reacquired Capital Stock 211 Other PaidIn Capital (6,72,989) 212 Discount on Capital Stock 213 Capital Stock Expense Retained Earnings F16 (223,562) 216 Reacquired Capital Stock 218 Proprietary Capital (Proprietorship and Partnership Only) Total Equity Capital (6,952,51) (7,5) (6,72,989) 665,339 (6,63, 151) LONGTERM DEBT 221 Bonds F Reacquired Bonds 223 Advances from Associated Companies F Other LongTerm Debt F17 Total LongTerm Debt CURRENT AND ACCRUED LIABILITIES 231 Accounts Payable (116,393) 232 Notes Payable F Accounts Payable to Associated Co. F Notes Payable to Associated Co. F Customer Deposits (275,529) 236 Accrued Taxes (59,297) 237 Accrued Interest F Accrued Dividends 239 Matured LongTerm Debt 24 Matured Interest 241 Miscellaneous Current and Accrued Liabilities F2 1,83 Total Current and Accrued Liabilities (449,388) (175,922) (72,844) (59,248) 376 (37,637) F2 (a)

22 DECEMBER 31, 217 COMPARATIVE BALANCE SHEET EQUITY CAPITAL AND LIABILITIES ACCT. REF. PREVIOUS NO. ACCOUNT NAME PAGE YEAR (a) (b) (c) (d) DEFERRED CREDITS CURRENT YEAR (e) 251 Unamortized Premium on Debt F Advances for Construction F2 253 Other Deferred Credits F Accumulated Deferred Investment Tax Credits FAS 19 Regulatory Liability Total Deferred Credits OPERATING RESERVES 261 Property Insurance Reserve 262 Injuries and Damages Reserve 263 Pensions and Benefits Reserve 265 Miscellaneous Operating Reserves Total Operating Reserves CONTRIBUTIONS IN AID OF CONSTRUCTION 271 Contributions In Aid of Construction F22 (11,171,725) 272 Accumulated Amortization of Contributions In Aid of Construction F22 5,644,122 Total Net C.I.A.C. (5,527,63) (11,254,281) 6,88,657 (5, 165,623) ACCUMULATED DEFERRED INCOME TAXES 281 Accumulated Deferred Income Taxes Accelerated Depreciation 282 Accumulated Deferred Income Taxes Liberalized Depreciation 283 Accumulated Deferred Income Taxes Other Total Accum. Deferred Income Taxes TOTAL EQUITY CAPITAL AND LIBILITIES (12,929,42) (11,536,41 ) F2 (b)

23 ) ) ) COMPARATIVE OPERATING STATEMENT ROF REPORT MBER 31,217.. ~ j ACCT. NO. (a) ACCOUNT NAME (b) PREVIOUS REF. CURRENT YEAR PAGE YEAR (d) (c) (e) WATER WASTEWATER OTHER THAN SCHEDULE W3 SCHEDULE S3 REPORTING SYSTEMS (f) (g) (h) UTILITY OPERATING INCOME 4 Operating Revenues 469,53 Less: Guaranteed Revenue and AFPI Net Operating Revenues (1,893,33) F3(b) (2, 126,27 4) F3(b) (1,893,33) (2,126,274) (871,335) (1,254,939) (871,335) (1,254,939) 41 Operating Expenses 1,53,495 F3(b) 1,643, ,916 1,193, Depreciation Expense Less: Amortization of CIAC Net Depreciation Expense 528, ,51 (439,35) F22 (444,536) 89,194 (1,484) 252,5 182,1 (15,24) (294,511) 12,26 (112,51) 46 Amortization of Utility Plant Acquisition Adjustment 47 Amortization Expense (Other than CIAC) 48 Taxes Other Than Income 49 Current Income Taxes 41.1 Deferred Federal Income Taxes Deferred State Income Taxes 41,.1 Provision for Deferred Income Taxes Credit ITCs Deferred to Future Periods ltc Restored to Operating Income F3(b) F3(b) 2,977 W/S3 196,724 W/S3 W/S3 W/S3 W/S3 W/S3 W/S3 65, ,442 Utility Operating Expenses 1,82,665 1,83,85 617,224 1,212,861 Net Utility Operating Income (72,638) (296,189) (254,111) (42,78) 469,53 Add Back: Guaranteed Revenue and AFPI 413 Income from Utility Plant Leased to Others 414 Gains (Losses) from Disposition of Utility Property 42 Allowance for Funds Used During Construction ' F3(b) Total Utility Operating Income (72,638) (296,189) (254,111) (42,78) F3 (a & b).

24 COMPARATIVE OPERATING STATEMENT DECEMBER 31,217 ACCT. NO. (a) ACCOUNT NAME (b) Total Utility Operating Income [From Page F3(a) OTHER INCOME AND DEDUCTIONS PREVIOUS REF. CURRENT YEAR PAGE YEAR (d) (c) (e) (72,638) (296, 189) Revenues From Merchandising, Jobbing and Contract Deductions Costs and Expenses of Merchandising, Jobbing and Contract Work Interest and Dividend Income Allowance for Funds Used During Construction Nonutility Income Miscellaneous Nonutility Expense 482 Total Other Income and Deductions 482 TAXES APPLICABLE TO OTHER INCOME Taxes Other Than Income Income Taxes Provision for Deferred Income Taxes Provision for Deferred Income Taxes Credit Investment Tax Credits Net Investment Tax Credits Restored to Operating Income Total Taxes Applicable To Other Income Interest Expense Interest Expense Amortization of Debt Discount & Expense Amortization of Premium on Debt 5,76 F19 F13 F13 Total Interest Expense 5,76 Extraordinary Items Extraordinary Income Extraordinary Deductions Income Taxes, Extraordinary Items Total Extraordinary Items NET INCOME (66,395) (296, 189) F3(c)

25 DECEMBER 31 I 217 SCHEDULE OF YEAR END RATE BASE ACCT. NO. (a) ACCOUNT NAME (b) REF. PAGE (c) WATER UTILITY (d) SEWER UTILITY (e) 11/17 Utility Plant In Service (4) F7 8,714,361 8,23, Less: Non used and Useful Plant ( 1) Accumulated Depreciation Accumulated Amortization Contributions In Aid of Construction Advances for Construction F8 F8 F22 F2 3,476,73 (4,688,84) 86,646 4,421,665 (6,566, 197) Subtotal 55,24 (3,51,95) 272 Additions: Accumulated Amortization of CIAC F22 2,126,4 3,962,617 Subtotal 2,676, , Plus or Minus: Acquisition Adjustments (2) Accumulated Amortization of Acquisition Adjustments (2) Working Capital Allowance (3) Other (Specify): F7 F7 56,24 149,241 Rate Base 2,732,484 1,6,763 Utility Operating Income (254,111) (42,78) Achieved Rate of Return 9.3% 3.97% NOTES: (1) Estimate based on the methodology used in the last rate proceeding. (2) Include only those Acquisition Adj's approved by the Commission. (3) Calculation consistant with the last rate proceeding; in the absence of a rate proceeding Class A utilities will use the Balance Sheet Method and Class 8 utilities will use the oneeighth O&M expense method. (4) CWIP included; Southlake is authorized to capitalize interest. F4

26 DECEMBER 31,217 SCHEDULE OF COST OF CAPITAL CONSISTENT WITH THE METHODOLOGY USED IN THE LAST RATE PROCEEDING (1) PERCENTAGE ACTUAL WEIGHTED DOLLAR OF COST COST CLASS OF CAPITAL AMOUNT (2) CAPITAL RATES (3) [ex d] (a) (b) (c) (d) (e) Common Equity 6,63, % 9.67% Preferred Stock.%.% Long Term Debt.%.% Customer Deposits 72, % 6.% Short Term Debt.%.% Tax CreditsWeighted Cost.%.% Deferred Income Taxes.%.% Other (Explain):Deferred ltc.%.% 9.56%.%.%.7%.%.%.%.% Total 6,135,995 1.% 9.63% (1) If the utility's capital structure is not used, explain which capital structure is used. (2) Should equal amounts on Schedule F6, Column (g). (3) Mid point of the last authorized Return On Equity or current leverage formula if none has been established. Must be calculated using the same methodology used in the last rate proceeding using current annual report year end amounts and cost rates. APPROVED RETURN ON EQUITY Current Commission approved Return on Equity: Commission order approving Return on Equity: 9.67% PSC9623PAAWS APPROVED AFUDC RATE Completion only required if AFUDC was charged during year. Current Commission approved AFUDC rate: Commission order approving AFUDC rate: 8.98% PSC8455PAAWS If any utility capitalized any charge in lieu of AFUDC (such as interest only), state the basis of the charge, an explanation as to why AFUDC was not charged and the percentage capitalized. F5

27 DECEMBER 31, 217 SCHEDULE OF CAPITAL STRUCTURE ADJUSTMENTS CONSISTENT WITH THE METHODOLOGY USED IN THE LAST RATE PROCEEDING PER NON NON BOOK UTILITY JURIS. OTHER (1) CAPITAL CLASS OF CAPITAL BALANCE ADJUSTS. ADJUSTS ADJUSTS. STRUCTURE (a) (b) (c) (d) (e) (f) Common Equity 6,63,151 6,63,151 Preferred Stock Long Term Debt Customer Deposits 72,844 72,844 Short Term Debt Tax CreditsWeighted Cost Deferred Income Taxes ltc Other (Explain) Total 6,135,995 6,135,995 (1) Explain below all adjustments made in Columns {e) and (f): F6

28 ACCT. NO. (a) UTILilY NAME: Southlake Utilities, Inc. UTILilY PLANT (ACCTS ) Plant Accounts: (b) UtilitY Plant In Service Utility Plant Leased to Others Property Held for Future Use Utility Plant Purchased or Sold Construction Work In Progress Completed Construction Not Classified Rounding Total Utility Plant WATER (c) 8,714,361 8,714,361 WASTEWATER (d) 8,23,413 8,23,413 DECEMBER 31, 217 OTHER THAN REPORTING SYSTEMS (e) TOTAL (f)_ 16,737,774 16,737,774 UTILilY PLANT ACQUISITION ADJUSTMENTS (ACCTS ) Report each acquisition adjustment and related accumulated amortization separately. For any acquisition adjustment approved by the Commission, include the Order Number. WATER WASTEWATER (a) (b) (c) OTHER (d) TOTAL (e) Acquisition Adjustments (114): Total Plant Acquisition Adjs.... Accumulated Amortization (115): Total Accumulated Amortization.. Net Acquisition Adjustments.... F7

29 DECEMBER 31,217 ACCUMULATED DEPRECIATION (ACCT.18) AND AMORTIZATION (ACCT.11) WATER WASTEWATER (a) (b) (c) Balance first of year (3,224,23) (4,361,499) Credit during year: Accruals charged: to Account 18.1 (1) (252,5) (182,1) to Account 18.2 (2) to Account 18.3 (3) Other Accounts (specify): Salvage Other credits (specify): SeeW6(a&b) Total credits (3,476,73) (4,543,5) Debits during year: Book cost of plant retired Cost of removal Other debits (specify) 121,834 Rounding Total debits 121,834 Balance end of year (3,476,73) (4,421,665) OTHER* (d) TOTAL (e) (7,585,522) (434,51) (8,19,573) 121, ,834 (7,897' 739) ACCUMULATED AMORTIZATION (ACCT. 11) WATER (b) SEWER (c) OTHER THAN REPORTING SYSTEMS (d) TOTAL (e) Balance first of year Credit during year: Accruals charged: to Account 11.2 (2) Other accounts (specify) Total credits Debits during year: Book cost of plant retired Other debits (specify) Total debits Balance end of year (1) Account 18 for Class B utilities. (2) Not applicable for Class B utilities. (3) Account 11 for Class B utilities. F8

30 DECEMBER 31,217 REGULATORY COMMISSION EXPENSE AMORTIZATION OF RATE CASE EXPENSE (ACCOUNTS 666 AND 766) DESCRIPTION OF CASE (DOCKET NO.) (a) EXPENSE INCURRED DURING YEAR (b) CHARGED OFF DURING YEAR ACCT AMOUNT (c) (d) Total NONUTILITY PROPERTY (ACCT. 121) Report seperately each item of property with a book cost of 25, or more included in Account 121. Other items may be grouped by classes of property. BEGINNING YEAR DESCRIPTION BALANCE ADDITIONS REDUCTIONS (a) (b) (c) (d) ENDING YEAR BALANCE (e) Total NonUtility Property SPECIAL DEPOSITS (ACCOUNTS 132 AND 133) Description of Special Deposits (a) Year End Book Cost Special Deposits (Acct.132): Total Special Deposits Other Special Deposits (Acct 133): Total Other Special Deposits: F9

31 DECEMBER 31,217 INVESTMENTS AND SPECIAL FUNDS (ACCTS ) Report hereunder all investments and special funds carried in Accounts 123 thru 127. DESCRIPTION OF SECURITY OR SPECIAL FUND (a) FACE OR PAR VALUE (b) YEAR END BOOK COST (c) INVESTMENT IN ASSOCIATED COMPANIES (ACCT. 123): Total Investment In Associated Companies UTILITY INVESTMENTS (ACCT.124): Total Utility Investments OTHER INVESTMENTS (ACCT. 125): Total Other Investments SPECIAL FUNDS (Class A Utilities: Accounts 126 and 127; Class B Utilities: Account 127): Total Special Funds F1

32 DECEMBER 31,217 ACCOUNTS AND NOTES RECEIVABLE NET (ACCOUNTS ) Report hereunder all accounts and notes receivable included in Accounts 141, 142 and 144. Amounts included in Accounts 142 and 144 should be listed individually. Description (a) TOTAL (b) Accounts Receivable: Customer Accounts Receivable (Acct. 141): Water Wastewater 83,814 79,885 Total Customer Accounts Receivable Other Accounts Receivable (Acct. 142): 163,699 Total Other Accounts Receivable Notes Receivable (Acct. 144): Summer Bay Southlake Dev Ltd 41, ,671 Total Notes Receivable Total Accounts & Notes Receivable 267,211 43,91 Accumulated Provision for Uncollectible Accounts (Acct. 143): Balance first of the year Add: Provision for uncollectibles for current year Collections of accounts previously written off Utility accounts Others Total Additions Deduct accounts written off during year: Utility accounts Others Total Total accounts written off Balance at the end of the year Accounts and Notes Receivable Net 43,91 F11

33 DECEMBER 31, 217 Report each account receivable from associated companies seperately. ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES (ACCT. 145) (a) TOTAL (b) Total NOTES RECEIVABLE FROM ASSOCIATED COMPANIES (ACCT. 146) Report each note receivable from associated compnaies seperately. DESCRIPTION INTEREST RATE (b) TOTAL (c) % % % % % Total MISCELLANEOUS CURRENT AND ACCRUED ASSETS ACCOUNT 174 DESCRIPTION Provide itemized listing (a) (b) ~L=a~n~d~L=ea=s~e~ 756,69 Total Miscelleaneous Current and Accrued Assets 756,69 F12

34 DECEMBER 31,217 UNAMORTIZED DEBT DISCOUNT AND EXPENSE AND PREMIUM ON DEBT (ACCTS.181 & 251) Report the net discount and expense or premium seperately for each security issue. AMOUNT WRITTEN OFF YEAR END DURING YEAR BALANCE (a) (b) (c) Unamortized Debt Discount and Expense (Acct. 181): Total Unamortized Debt Discount and Expense Unamortized Premium on Debt (Acct. 251): Total Unamortized Premium on Debt None EXTRAORDINARY PROPERTY LOSSES (ACCT. 182) Report each item seperately. Description (a) TOTAL (b) Extraordinary Property Losses (Acct. 182): Total Extraordinary Property Losses F13

35 DECEMBER 31,217 MISCELLANEOUS DEFERRED DEBITS ACCOUNT 186 Description Provide Itemized Listing (a) Amount WrittenOff During Year (b) YearEnd Balance (c) Mise Deferred Debits (Tank Painting 186.1) Tank Painting 12,2 12,2 Total Deferred Debits Expense 12,2 12,2 Deferred Debits (Acct ) Deferred AFPI Project Costs 785,93 Total Other Deferred Debits 785,93 Regulatory Assets (Class A Utilities: Account 186.3) Regulatory Assets 1,928 Total Regulatory Assets 1,928 Total Miscellaneous Deferred Debits 12,2 8,58 F14

36 DECEMBER 31, 217 CAPITAL STOCK (ACCTS. 21 and 24) DESCRIPTION (a) COMMON STOCK Par or stated value per share Shares authorized Shares issued and outstanding Total par value of stock issued Dividends declared per share for year Rate (b) Total (c) 1 (7,5) 7,5 7,5 (7,5) None None PREFERRED STOCK Par or stated value per share Shares authorized Shares issued and outstanding Total par value of stock issued Dividends declared per share for year None None None None None None None None None None Account 24 not applicable for Class B utilities. BONDS ACCOUNT 221 INTEREST PRINCIPAL Description of Obligation (Including Date of FIXED OR AMOUNT PER Issue and Date of Maturity) RATE VARIABLE* BALANCE SHEET (a) (b) (c) (d) % % % % % % % % % % % *For variable rate obligations, provide the basis for the rate (e.g., prime+ 2%, etc.). Total F15

37 STATEMENT OF RETAINED EARNINGS DECEMBER 31, Dividends should be shown for each class and series of capital stock. Show amounts of dividends per share. 2. Show separately the state and federal income tax effect of items shown in Account No ACCT. NO. (a) (b) Description AMOUNTS (c) 215 Unappropriated Retained Earnings: Balance beginning of year Changes to account: 439 Adjustments to Retained Earnings (requires Commission approval prior to use): Credits: Rounding (223,562) Debits: AIR Adjustment Total Credits Prior Yr Adjs (314,91) Distribution 1,5, 435 Balance transferred from Income 436 Appropriations of Retained Earnings: Total Debits 1,5, (296,189) Total Appropriations of Retained Earnings Dividends Declared: 437 Preferred Stock Dividends Declared 438 Common Stock Dividends Declared Rounding Total Dividends Declared 215 Balance end of year 214 Appropriated Retained Earnings (state balance and purpose of each appropriated amount at year end): 665, Total Appropriated Retained Earnings Total Retained Earnings 665,339 Notes to Statement of Retained Earnings: F16

38 DECEMBER 31,217 ADVANCES FROM ASSOCIATED COMPANIES (ACCOUNT 223) Report each advance seperately. TOTAL (b) DESCRIPTION (a) Total OTHER LONGTERM DEBT (ACCOUNT 224) * INTEREST Description of Obligation (Including Date of Issue and Date of Maturity) ANNUAL FIXED OR (a) RATE VARIABLE* (d) (e) PRINCIPAL AMOUNT PER BALANCE SHEET (f) % % % % % % % % % Total * For variable rate obligations, provide the basis for the rate (e.g., prime + 2%, etc). F17

39 DECEMBER 31, 217 NOTES PAYABLE (ACCTS 232 and 234) INTEREST DESCRIPTION OF OBLIGATION PRINCIPAL (INCLUDING DATE OF ISSUE AND DATE OF MATURITY) ANNUAL FIXED OR AMOUNT PER RATE VARIABLE* BALANCE SHEET (a) (d) (e) (f) Account 232 Notes Payable: Total Account 232 Account 234 Notes Payable To Associated Companies: Advances from Parent Company Total Account 234 * For vanable rate obligations, prov1de the bas1s for the rate (e.g., pnme + 2%, etc). ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES (ACCOUNT 233) Report each account payable seperately. DESCRIPTION (a) I TOTAL (b) I Total F18

40 DECEMBER 31, 217 ACCRUED INTEREST AND EXPENSE ACCOUNTS 237 AND 427 INTEREST ACCRUED INTEREST BALANCE DURING YEAR PAID BEGINNING ACCT. DURING DESCRIPTION OF DEBT OF YEAR DEBIT AMOUNT YEAR (a) (b) (c) (d) (e) ACCOUNT N Accrued Interest on Long Term Debt: BALANCE END OF YEAR (f) TOTAL ACCOUNT ACCOUNT N Accrued Interest on other liabilities: Customer Deposits.. TOTAL ACCOUNT TOTAL ACCOUNT NO. 237 (1) INTEREST EXPENSED: TOTALACCRUALACCOUNT Less: CAPITALIZED INTEREST PORTION OF AFUDC: (1) Must agree to F2(a), Beginning and Ending Balance of Accrued Interest (2) Must agree to F3(c), current year interest expense. NET INTEREST EXPENSED TO ACCOUNT NO. 427 (2) F19

41 Year of Report DECEMBER 31, 217 MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES (241) Description Provide itemized listing Balance End Of Year Payroll FICA Payroll Medicare Payroll FIT Payroll41 K PreTax W/H 791 (2) 678 (892) Total Miscellaneous Current And Accrued Liabilities 376 ADVANCES FOR CONSTRUCTION (ACCT.252) BAlANCE BEGINNING ACCT. NAME OF PAYOR OF YEAR DEBIT AMOUNT (a) (b) (c) (d) CREDITS (e) BALANCE END OF YEAR (f) Water Total Water Wastewater Total Wastewater TOTAL * Report advances separately by report1ng group, des1gnat1ng water or wastewater 1n column (a). F2

42 DECEMBER 31, 217 OTHER DEFERRED CREDITS (ACCOUNT 253) Description Provide itemized listing (a) Amount Writtenoff During Year (b) YearEnd Balance (c) Regulatory Liabilities (Class A Utilities: Account ): Total Regulatory Liabilities Other Deferred Liabilities (Class A Utilities: Account 253.2): Total Other Deferred Liabilities Total Other Deferred Credits F21

43 ) ) ) DECEMBER 31, 217 CONTRIBUTIONS IN AID OF CONSTRUCTION (ACCOUNT 271) W&WWOther Water Wastewater Than Reporting Description (W7) (S7) System Total (a) (b) (c) (d) (e) Balance first of year: (4,66,541) (6,511,184) (11,171,725) Add credits during year: (27,543) (55,13) (82,556) Less debits charged during the year: Total Contributions in Aid of Construction (4,688,84) (6,566,197) (11,254,281) ACCUMULATED AMORTIZATION OF CIAC (Acct. 272) W& WWOther Water Wastewater Than Reporting Description W8(a) S8(a) System Total (a) (b) (c) (d) (e) Balance first of year 1,976,16 3,668,16 5,644,122 Debits during year: 15,24 294, ,536 Credits during year: Total Accumulated Amortization of CIAC 2,126,4 3,962,617 6,88,657 F22

44 DECEMBER 31,217 RECONCILIATION OF REPORTED NET INCOME WITH TAXABLE INCOME FOR FEDERAL INCOME TAXES (UTILITY OPERATIONS) 1.The reconciliation should include the same detail as furnished on Schedule M1 of the federal tax return for the year. The reconciliation shall be submitted even even though there is no taxable income for the year. Descriptions should clearly indicate the nature of each reconciling amount and show the computation of all tax accruals. 2. If the utility is a member of a group which files a consolidated Federal tax return, reconcile reported net income with taxable net income as if a separate return were to be filed, indicating intercompany amounts to be eliminated in such consolidated return. State names of group members, tax assigned to each group member, and basis of allocation, assignment, or sharing of the consolidated tax among the group members. DESCRIPTION REF AMOUNT (a) (b) (c) Net Income for the Year F3c (296, 189} Reconciling items for the year: Taxable income not reported on books: Deductions recorded on books not deducted for return: Income recorded on books not included in return: Deduction on return not charged against book income: Federal Tax Net Income (296, 189) State Income Tax Expense Computation of tax: Federal Income Tax Expense Investment Tax Credit Deferred Federal Income Tax Expense Total Federal Income Tax Expense F23

45 WATER OPERATION SECTION

46 DECEMBER 31, 217 WATER LISTING OF SYSTEM GROUPS List below the name of each reporting system and its certificate number. Those systems which have been consolidated under the same tariff should be assigned a group number. Each individual system which has not been consolidated should be assigned its own group number. The water financial schedules (W2 through W1) should be filed for the group in total. The water engineering shcedules (W11 through W15) must be filed for each system in the group. All of the following water pages (W2 through W15) should be completed for each group and arranged by group number. SYSTEM NAME/COUNTY CERTIFICATE NUMBER GROUP NUMBER Southlake Utilities, Inc./Lake County 533W W1

47 System Name/County: Lake DECEMBER 31, 217 SCHEDULE OF YEAR END WATER RATE BASE ACCT. REF. NO. ACCOUNT NAME PAGE (a) (b) (c) WATER UTILITY (d) 11 Utility Plant In Service (4) W4(b) 17 Construction WorkinProcess F7 Less: Nonused and Useful Plant (1) 18 Accumulated Depreciation W6(b) 11 Accumulated Amortization 271 Contributions In Aid of Construction W7 252 Advances for Construction F2 Subtotal 8,714,361 (3,476,73) (4,688,84) 55,24 Adds: 272 Accumulated Amortization of CIAC W8(a) 2,126,4 Subtotal 2,676,244 Plus or Minus: 114 Acquisition Adjustments (2) F7 115 Accumulated Amortization of Acquisition Adjustments (2) F7 Working Capital Allowance (3) Other (Specify): 56,24 Water Rate Base 2,732,484 Water Operating Income W3 (254, 111) Achieved Rate of Return 9.3% NOTES: (1) Estimate based on the methodology used in the last rate proceeding. (2) Include only those Acquisition Adjustments that have been approved by the Commission. (3) Calculation consistant with the last rate proceeding. In the absence of a rate proceeding, Class A utilities will use the Balance Sheet method and Class B utilities will use the oneeighth O&M expense method. (4) CWIP included; Southlake is authorized to capitalize interest. W2

48 System Name/County: Lake DECEMBER 31,217 WATER OPERATING STATEMENT ACCT. REF. NO. ACCOUNT NAME PAGE (a) (b) (c) CURRENT YEAR (e) UTILITY OPERATING INCOME 4 Operating Revenues W9 469 Less: Guaranteed Revenue and AFPI W9 Net Operating Revenues 41 Operating Expenses W1(a) (871,335) (871,335) 449, Depreciation Expense W6(a) Less: Amortization of CIAC W8(a) Net Depreciation Expense 252,5 15,24 12,26 46 Amortization of Utility Plant Acquisition Adjustment F7 47 Amortization Expense (Other than CIAC) F8 Taxes Other Than Income: 48.1 Utility Regulatory Assessment Fee Property Taxes Payroll Taxes Other Taxes and Licenses 48 Total Taxes Other Than Income 39,21 16,347 9,724 65, Income Taxes 41.1 Deferred Federal Income Taxes Deferred State Income Taxes Provision for Deferred Income Taxes Credit ITCs Deferred to Future Periods ltc Restored to Operating Income Utility Operating Expenses Net Utility Operating Income 617,224 (254,111) Add Back: 469 Guaranteed Revenue and AFPI W9 413 Income from Utility Plant Leased to Others 414 Gains/Losses from Disposition of Utility Property 42 Allowance for Funds Used During Construction Total Utility Operating Income (254,111) W3

49 ) ) ) System Name/County: Lake WATER UTILITY PLANT ACCOUNTS DECEMBER 31, 217 WATER UTILITY PLANT MATRIX ACCT. NO. (a) ACCOUNT NAME (b) Organization Franchises Land and Land Rights Structures and Improvements Collecting & Impounding Reservoirs Lake River and Other Intakes Wells and Springs Infiltration Galleries & Tunnels SuJlply Mains Power Generation Equipment Pumping Equipment Water Treatment Equipment Distribution Reservoirs & Standpipes Transmission & Distribution Mains Services Meters and Meter Installations Hydrants Other Plant & Misc. Equipment Office Furniture and Equip. Transportation Equipment Stores Equipment Tools, Shop and Garage Equip. Laboratory Equipment Power Operated Eqljipment Communication Equipment Miscellaneous Equipment Other Tangible Plant Property Held For Future Use Rounding Unclassified Plant PREVIOUS YEAR (c) 25 62,993 77,19 777,66 2,128,513 18, ,259 25,27 1,19,779 2,94, , ,6 257,466 14,39 28, ,457 35,45 ADDITIONS (d) 24,227 61,85 23,279 2,7 2,642 RETIREMENTS (e) ADJUSTMENTS CURRENT YEAR (f) 25 62,993 77,19 81,293 2,128,513 18, ,259 25,27 1,19,779 3,2,48 324,988 57,879 26,166 14,39 48, ,457 35,45 (1) INTANGIBLE PLANT (g) 25 62, ! j :::::: o I 77, o I 81, I" :. : _:: _:.:.: ::::::: : : : : : : ,128,513 :. :. :. ::.:: : :. :. :. : :. : l. :. :. : : ' :. : : : : : : : : I: : : : : : : ::::::: :. : : : : : : I : : :. : :. : : ,985. : : : :. : : : l. : : : : : : ,259 1:::::: , ,19,779...~ I ,2, , ::::::::::::::....., , ,166 ::::::: 1 ~ 14,39.:. :.:.:.:.:......,; ;, , :: : ::: : ,457 1::::::: I, ::::::: , (2) SOURCE OF SUPPLY AND PUMPING PLANT (h)... (3) WATER TREATMENT PLANT (i). ~..;;...~... (4) TRANSMISSION AND DISTRIBUTION PLANT G) (5) GENERAL PLANT (k) Total Water Plant 8,582, ,932 8,714,361 63,243 2,147,498 1,46,598 5,362,898 94,124 W4(a& b)

50 System Name/County: Lake DECEMBER 31,217 BASIS FOR WATER DEPRECIATION CHARGES AVERAGE AVERAGE SERVICE NET ACCT. LIFE IN SALVAGE IN NO. ACCOUNT NAME YEARS PERCENT (a) (b) (c) (d) DEPRECIATION RATE APPLIED IN PERCENT (1% d)/ c (e) 34 Structures and Improvements Collecting and Impounding Reservoirs 36 Lake River and Other Intakes 37 Wells and Springs 3 38 Infiltration Galleries and Tunnels 39 Supply Mains 31 Power Generation Equipment Pumping Equipment 2 32 Water Treatment Equipment Distribution Reservoirs and Standpipes Transmission and Distribution Mains Services Meters and Meter Installations Hydrants Other Plant and Miscellaneous Equipment Office Furniture and Equipment Transportation Equipment 342 Stores Equipment 343 Tools, Shop and Garage Equipment Laboratory Equipment 345 Power Operated Equipment Communication Equipment 347 Miscellaneous Equipment 348 Other Tangible Plant 1 3.3% 3.33% 5.% 5.% 4.55% 2.7% 2.33% 2.5% 5.% 2.22% 4.% 6.67% 6.25% 8.33% 1.% * Water Plant Composite Depreciation Rate * If depreciation rates prescribed by this Commission are on a total composite basis, entries should, be made in this line only. W5

51 ) ) ) System Name/County: Lake DECEMBER 31,217 ANALYSIS OF ENTRIES IN WATER DEPRECIATION RESERVE TOTAL RESERVE ACCRUALS OTHER CREDITS BALANCE BOOKED CREDITS TO SALVAGE ACCT. AT BEGINNING TO TO RESERVE PLANT AND NO. ACCOUNT NAME OF YEAR RESERVE RESERVE* (d+ e) RETIRED INSURANCE (a) (b) (c) (d) (e) (f) (g) (h) 31 Organization 32 Franchises 34 Structures and Improvements (348,921) (23,9) (23,9) 35 Collecting and Impounding Reservoirs 36 Lake River and Other Intakes 37 Wells and Springs (753,545 (7,879) (7,879) 38 Infiltration Galleries & Tunnels 39 Supply Mains 31 Power Generation Equipment (18,985) 311 Pumping Equipment (1,384) (7,163) (7,163) 32 Water Treatment Equipment (15,68) (1, 139) (1,139) 33 Distribution Reservoirs & Standpipes (367,321) (32,151) (32,151) 331 Transmission & Distribution Mains (978,573) (69,236) (69,236) 333 Services (18,586) (8,125) (8,125) 334 Meters and Meter Installation (366,48) (27,943) (27,943) 335 Hydrants (96,32) (5,746) (5,746) 339 Other Plant & Misc. Equipment (8,299) (234) (234) 34 Office Furniture and Equip. (26,224) (1,967) (1,967) 341 Transportation Equipment 342 Stores Equipment 343 Tools, Shop and Garage Equip. (679) 344 Laboratory Equipment 345 Power Operated Equipment (9,393) (63) (63) 346 Communication Equipment 347 Miscellaneous Equipment 348 Other Tangible Plant (25,964) (3,55 (3,55 Total Depreciable Water Plant In Service (3,224,23) (252,5) (252,5) TOTAL RESERVE OTHER CHARGES BALANCE COST CHARGES TO AT END OF TO RESERVE OF YEAR REMOVAL RESERVE** (gh+l+j) (c+fk) (i) ) (k) (I) (372,821) (824,424) (18,985) (17,547) (16,27) (399,472) (1,47,89) (116,711) (393,991) (11,777) (8,534) (28,191) (679)! I (9,457) (29,469) (3,476,73) Accounts 31: adj'd excess depreciation of asset fully depreciated. W6 (a & b)

52 System Name/County: Lake YEAR ENDING: DECEMBER 31,217 CONTRIBUTIONS IN AID OF CONSTRUCTION (ACCOUNT 271) DESCRIPTION REFERENCE WATER (a) (b) (c) Balance first of Year (4,66,541) Add Credits During Year: Contibutions received from capacity, Main extension and customer connection charges WB(a) (27,543) Contributions received from Developer or Contractor Agreements in cash or property WB(b) Total Credits (27,543) Less Debits Charged During the Year: (All debits charged during the year must be explained below) Total Contributions in Aid of Construction (4,688,84) If any prepaid CIAC has been collected, provide a supporting schedule showing how the amount is determined. Explain below all debits charged to Account 271 during the year: W7