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COMMISSIONER SIEBERT ASKED IF THESE COSTS ARE PRO -RATED BACK TO MID -FLORIDA, AND MR. COFFEY STATED THERE IS NO CO -MINGLING. OF EXPENSES WHICH ARE DIRECT COSTS. COMMISSIONER SIEBERT NOTED THAT ADMINISTRATIVE COSTS AMOUNT TO MORE THAN 25% AND HE ASSUMED MR. MCALLISTER`S SALARY IS INCLUDED IN THIS. MR. COFFEY STATED THAT MR, MCALLISTER'S SALARY COULD GO UNDER DIFFERENT HEADING, ACCORDING TO WHAT HE IS INVOLVED WITH, COMMISSIONER SIEBERT NOTED THAT MOST OF THIS MONEY GOES BACK TO THE PARENT COMPANY IN WINTER PARK, AND ASKED IF ANY OF IT GOES BACK TO GENERAL WATERWORKS, MR, COFFEY STATED THAT IT DID NOT. COMMISSIONER SIEBERT DISCUSSED HOW DEPRECIATION IS APPLIED, NOTING THAT A PORTION OF DEPRECIATION IS FOR THE DISTRIBUTION SYSTEM, WHICH IS AN ASSET. HE ASKED HOW DEPRECIATION ALLOWANCE WOULD AFFECT COST TO THE CUSTOMERS. MR, COFFEY STATED THAT THE COMPANY DOES NOT EARN ON ACCUMULATED DEPRECIATION. COMMISSIONER SIEBERT POINTED OUT THAT THE INTEREST EXPENSE SHOWN IN EXHIBIT C IS A LARGE ITEM, AND MR, COFFEY STATED THAT MID - FLORIDA HAS BEEN RUNNING AT AN OPERATING LOSS AND IT HAS BEEN NECESSARY TO BORROW MONEY. COMMISSIONER SIEBERT ASKED IF THEY CAN BORROW FROM GENERAL WATERWORKS, AND MR. COFFEY STATED THEY CAN AND THE INTEREST CHARGE IS ABOUT 8%. COMMISSIONER LOY ASKED WHAT PERCENTAGE OF THE PARENT COMPANY IS CHARGED AGAINST MID -FLORIDA. MR, COFFEY STATED THAT THE S% OF THE SALARY OF MR. OVERSTREET AND TWO OF HIS SUBORDINATES AT WINTER PARK IS CHARGED BACK TO MID - FLORIDA. COMMISSIONER LOY ASKED IF THIS HOLDS TRUE WITH OTHER ITEMS, AND MR. COFFEY SAID THAT IT DOES NOT APPLY TO DIRECT EXPENSES. CHAIRMAN WODTKE REQUESTED THAT MR. COFFEY SUPPLY THE BOARD WITH A BREAKDOWN OF EXPENSES FOR 1Q76-1977 FOR MID -FLORIDA, AND MR. COFFEY AGREED HE COULD DO THIS AND WOULD ALSO ANALYZE THE INTEREST EXPENSE, 0 SFP 14 1977 P(v 31 PAGF 55