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rp,-- <br />MAR 19 1986 <br />BOOK 63 P°;E 9 <br />plant. They are predicting they are going to sell a certain <br />number of gallons, and based on that, they establish a rate per <br />thousand gallons. If you install meters on gallons used for <br />irrigation and it reduces the amount of flow sold for sewerage, <br />the cost per thousand gallons will increase to match the costs <br />needed to operate the system. That is why most utilities <br />nationally have a 10-12,000 gallon cap. <br />Chairman Scurlock confirmed that if you decrease revenue in <br />one area, you have to have an increase in revenue to meet that <br />revenue requirement somewhere else. <br />Mr. Rankel felt it is just a way of collecting more money. <br />He informed that Board that he formerly lived in Long Island <br />where they had a very large treatment plant and there he only <br />paid $100 a year for sewer. <br />Chairman Scurlock believed the Long Island plant is a public <br />facility and most likely subsidized by ad valorem taxes. <br />Mr. Rankel stated it was not subsidized by anybody. When <br />they put the sewer in, it cost the people; it cost him $2,500 to <br />hook up. It also cost him when he hooked up to this sewer - he <br />had to pay around $750, or more, and he did not feel all those <br />$750's that the residents paid are showing up in the income. <br />Chairman Scurlock assured him that these fees were included <br />and are a part of the rate case; every time someone purchases a <br />home under the present rate structure, they pay for 750 of that <br />capital GDU can't.recover the depreciation on. <br />Mr. Rankel asked whether General Development pays this fee <br />when they build a home or whether it is paid when the home is <br />sold. <br />Mr. Morris stated that the company pays -the same fee any <br />developer does. He did not know exactly when they pay it in the <br />Vero Highlands area, but in Port St. Lucie it is paid at approxi- <br />mately the stucco stage of construction and before the C.O. <br />Mr. Rankel noted that the same workers work both on water <br />and sewer, and wished to know if their salaries are separated. <br />22 <br />l <br />