Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-08-21
Water
Continued From First Page.)

NSOLlJlIlucQ from F1TSV FdRe,)
and useful to the system was $37 .O87,-
69687. This is the sum calculated
actually to have been spent on the
plants from its beginning up to June
80, 1887.
The figures used in this appraisal
were partly estimated and partly
taken from old records.
Reproduction Cost $5S,e4S,680.
The cost Of reproducing the exist
ing plant new was calculated to be
$50, $50. This figure represents the
engineers estimate Of what 1t would
cost today to build such q plant rs
now exists, using present labor, ma
terial and land prices.
Striking from this figure allowances
for depreciation which has taken place
in the plant as 1t actually exists to-
day, the board found, would place the
estimated reproduction cost new, less
depreciation at $43.670,7S6.
The board found the annual depre-
citation accrual to be $3.50, 127-this
being the estimate of what sums would
have to be set aside annually for re-
placement OF wornout portions of the
plant structure, just as is done in the
case Of public utility appraised by
the Public Utilities Commission.
In its summation the board said:
Existing water rates are adequate to
cover not only operating expenses. but
also depreciation accruals, but are in
sufficient to finance proposed major
additions to the system.
~ Per Cent Boost Asked.
IF authorities deem it appropriate
for the subscribers now charged tor
water to provide revenues sufhcient
for proposed future capital improve
ments in addition to current operating
expenses, then existing water rates
must be increased approximately %
per cent, as outlined in the tentative
rate schedule, appended.
Irrespective of what action is taken
on changes In the rate structure, the
character of operating statistics and
predicted expenditures currently avail
able is such as to require additional
analyses by the year 1943 to adjust
observed revenues to the more accu-
rate cost estimates which should then
be available"
District water rates were increased
two years ago, when Congress ordered
an end to the IS per cent reduction in
rates which had prevailed for several
years. The metered allowance was de-
creased at the same time from 5000
cubic feet to $500, taking away a
benefit that had been extended for
several years
The present minimum bill in the
District is $8.75 a year, as against the
average minimum bill for the 40 largest
cities Of the country Of $756; but the
annual charges for the higher con-
sumption brackets in the District are
all lower than the averages for the 40
other cities, according to information
collected by the board.
Net Return Of 0.S2 Per Cent.
From the mass of information OBJ
tanned by the Survey Board, it con-
cluded that existing District water
rates were considerably below the
average for those OF the largest 40
cities of the United States.
Without making allowances for
heavy expenditures to come, the board
finds that the District water system
shows a very small met return'-of
0.82 per cent. 1t said:
The board finds that water rates
in effect July l, 1887, promise to re-
turn revenues adequate to cover opera
tion and maintenance costs, annual
depreciation accruals, and an annual
net return of approximately 1861 $50
during the fiscal year 1898, being
equivalent to 0.82 per cent on 4 prop
erty currently valued at $44, 900, 900.
Note that, except for annual deprecia-
ton accruals. the aforementioned re-
turns do not include financing cap
ital expenditures to the system.
If the water system is expected to
finance future capital expenditures
the board finds that current rates may
be expected to provide insufficient
revenues. The existing surplus, aug