7/19/1978 - Laserfiche WebLink

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ATTORNEY KRAMER ASKED DAVID THOMPSON TO COME FORWARD. ROBERT DAVID THOMPSON OF 45 IST COURT S.W. STATED THAT HE IS AN ACCOUNTANT WITH A LOCAL ACCOUNTING FIRM AND IS SPEAKING ON BEHALF OF HIMSELF AS A RESIDENT OF EASTVIEW GARDENS. ATTORNEY KRAMER ASKED IF MR. THOMPSON CONCURRED WITH THE TESTIMONY AND COMPLAINTS JUST LODGED, AND MR. THOMPSON STATED THAT HE DID, NOTING THAT HE HAS BEEN ABLE TO ALLEVIATE SOME OF HIS PROBLEMS ,WITH THE WATER BY HAVING A WATER SOFTENER INSTALLED. MR, THOMPSON INFORMED THE BOARD THAT HE HAS EXAMINED THE FINANCIAL STATEMENTS SUBMITTED BY IXORA UTILITIES, AND THEY ARE NOT AUDITED STATEMENTS AS REFERRED TO BY ATTORNEY BOGOSIAN. HE ALSO POINTED OUT THAT ANOTHER FISCAL YEAR HAS PASSED SINCE THE STATEMENTS THAT ARE BEFORE THE BOARD AND NOTED THAT THE TOTAL MINIMUM CHARGE FOR WATER AND FLAT CHARGE FOR SEWER WOULD RESULT IN AN OVERALL 7710 INCREASE IN THE RATES. MR. THOMPSON POINTED OUT THAT SINCE 1960 TO MAY 31, 19771 THE CORPORATION HAS SHOWN 'ACCUMULATED RETAINED EARNINGS OF $60,700. HE NOTED THAT IN 1976 THE COMPANY HAD A $40,000 LOSS WHICH HAS BEEN ACCOUNTED FOR IN THE $60,700 FIGURE SO AT SOME TIME THEY HAVE HAD OVER'$100,000 IN RETAINED EARNINGS IN THE BUSINESS. HE REVIEWED THE FIGURES INVOLVED IN DETAIL AND STATED THAT HIS MAIN POINT IS THAT MONEY GENERATED IN THE CORPORATION WAS USED TO PAY OFF NOTES PAYABLE CURRENT INSTEAD OF BEING USED TO MAKE PLANT ADDITIONS OR IMPROVE- MENTS. MR. THOMPSON FELT THAT COMPARED TO OTHER UTILITY COMPANIES, THE RATE OF RETURN IS EXORBITANT AND UNFAIR TO THE SUBSCRIBER. ATTORNEY BOGOSIAN ASKED MR. THOMPSON IF HE IS FAMILIAR WITH THE FAIR RATE OF RETURN FOR A UTILITY, AND MR. THOMPSON STATED THAT HE KNOWS SOUTHERN BELL IS LIMITED TO AN 8% RATE OF RETURN AND HE FEELS 10% IS TOO MUCH. W 35 314