C152718 Feasibilty Study - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I FUTURE WATER SALES Future revenues have been estimated by assuming that revenues vary in direct proportion to the number of equivalent domestic taps. That assumption has proven to be very valid in the past. The revenue generated in 19% without the Leprino and Excel customers was $696,616 as shown in the preceding table. The average llumber of equivalent taps in 19% was 1,969. The revenue generated per equivalent was, therefore, $354 per year. Based on the expected growth of 78 equivalents per year, the new revenue will be 78 x $354 = $27,612 per year. Exhibit Number Seven, included at the back of the report, shows a graphical representation of both past and future anticipated revenues based on the preceding assumption. PAST TAP FEE REVENUE Tap fees were $1,500 from 1988 until 1994. Fees were increased in 1994 to $2,000 and again in 1995 to $3,500, where they remain at the present time. Income generated in previous years was adjusted to reflect the income that would have been generated if rates were at the present level. The resulting information is presented in the following table. YEAR 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997" AVERAGE .. Estimated TABLE NUMBER 5 TAP FEE INCOME INCOME $36,913 $50,650 $56,413 $112,435 $71,304 $124,083 $322,450 $128,906 ADJUSTED INCOME $86,129 $118,182 $131,628 $262,345 $166,374 $289,523 $370,461 $161,132 $187,873 $190,000 $196,374 FUTURE TAP FEE REVENUE It has been assumed for the future prediction that the tap fee income will remain constant at the average of about $200,000 that has been experienced over the last ten years. 12