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APR 3 1990 BOOK .79 Pgr,E 74 a' competitor, Treasure Coast Sanitation Corporation, received a rate increase 2-3 years ago from $5.25 to $8.23. Harris filed its application eleven months ago for the present rate increase request, and are here today for the public hearing to justify that. Steve Tatoul, comptroller for Harris Sanitation, felt that the reason for the need for a rate increase is contained in the documents that have been submitted. The documents show the 1987-88 results and some improvements in their operations going into 1988, which they had hoped they would be able to continue. However, in early 1989 it was clear that they needed a rate adjustment, and they filed the application in May, 1989. Commissioner Scurlock had a number of questions. In staff's analysis of revenue, it mentions a 23.4% growth in revenue. Initially, your figures suggested that there wasn't any growth in residential units, but when we reviewed your figures, we identified that you were carrying about 560 customers in a commercial category who really were residential in nature, i.e. pickup at each mobile home. Under Expenses, there is a 31% reduction in operating expenses, which is a significant portion of your operation, along with a decrease in your maintenance expenses. While your labor costs have risen only 6.1%, your salaries and general administration costs have increased by 46.2%, and interest expenses rose substantially by 55%. Commissioner Scurlock felt these increases are pretty significant in view of the fact that there were some reductions in some other categories. Commissioner Scurlock explained that when he analyzed their gross receipts for commercial and residential, it appeared that almost 80% of their revenue came from the commercial side and 20% from the residential side, and he had questioned why so much was being attributed over to the residential side, especially in the interest expense. It became clear that you purchased a piece of 20 � � s