CONDENSED CLASSIFICATION OF
MUNICIPAL WATER UTILITY ACCOUNTS

Under the authority granted to the Auditor of Public Accounts of the State of Illinois by the Municipal Auditing Law of 1953 amended, a typewritten pamplet was prepared bearing the title "Uniform System of Accounts for Municipal Water Utilities."

In compiling the pamphlet, the author kept in mind that such a production should be harmonized on the one hand with the Uniform System of Privately-owned Water Utilities in the State of Illinois, and on the other hand with the Uniform System of national groups such as the American Water Works Association and the American Association of Railway and Public Utility Commissioners.

After the typewritten pamphlet had been practically completed for final approval and formal printing for its intended use, it was learned that proposed changes or revised authorizations were about to be considered both by the State and National organizations concerned. At that point the Auditor of Public Accounts and the Municipal Audit Advisory Board of Illinois felt that good administration of the Municipal Auditing Law would decree that a uniform system of accounts for Municipal Water Utilities should not receive at that time a vote of final approval for printing or distribution.

Instead of authorizing the final adoption and printing of the Uniform System, the State Auditor and the Advisory Board thought it would be much better to provide for a temporary helpful and practical substitute therefor. The substitute takes the form of a complete list of appropriately numbered account titles arranged in an order representative of what is considered a very satisfactory condensed classification of accounts for small and medium sized municipally owned water utilities.

The difference between the typical classification of accounts for a municipal water utility and the condensed one shown here may be illustrated by two frequently used accounts. The first one is an asset account, the second an expense.

An asset account (Meters), as listed and described in a complete Uniform System for a Water Utility, is shown below:

I (a) "324. Meters.

"A. This account includes the cost installed of meters or devices and appurtenances thereto for use in measuring the quantity of water delivered to customers, whether actually in service or held in reserve.
"B. When a meter is permanently retired from service, the installed cost thereof is credited to this account.
"C. The records covering meters are so kept as to show separately for each type and size of meter the number of utility-owned meters installed on customers' premises (subdivided between active and inactive), the number of meters carried herein but not installed on customers' premises, including meters undergoing repairs, and the number of meters in service owned by customers.

"ITEMS

1. Cocks
2. Installation, labor of, first installation of a location
3. Meters, including badging and initial testing
4. Meter bars
5. Meter fittings, connections and shelves (first set)
6. Meter vaults
7. Meter couplings
8. Swivels and bushings
9. Transportation from meter shop to location 10. Yokes

"Note A—The cost of removing and resetting meters shall be charged to account 754-1, Removing and Resetting Meters.
"Note B—Minor items shall be included in this account only when in service; otherwise, they shall be carried in materials and supplies."
An asset account, used in this condensed classification of accounts for a Water Utility, listed as to number and title only without elaboration appears like this:
I (b) "324. Meters."
The second account used here for illustration is an expense account (Purification Labor) as listed and described in a complete Uniform System of Accounts for a Water Utility in these words:
II (a) "742. Purification Labor. "This account includes the pay of employees engaged in the operation of the purification system.

"ITEMS
1. Chemicals, application of
2. Chemicals, manufacture of
3. Cleaning basins
4. Filters, operating
5. Ice, removal of
6. Sediment, removal of
7. Washing filters
8. Water softening plant, operation of An expense account, used in this condensed classification of accounts for a water utility, listed

1. For use of some practical data we acknowledge our appreciation to the publishers of Manual of Water Works Accounting, namely Municipal Finance Officers' Association and American Water Works Association. It was necessary to make changes in some amounts and titles because the book deals with Privately-owned utilities and this condensed classification and trial balance deal with Publicly-owned.

(Continued on page 68)

Page 56 / Illinois Municipal Review / March 1958

CONDENSED CLASSIFICATION OF
MUNICIPAL WATER UTILITY ACCOUNTS

(Continued from page 56)

as to number and title only without elaboration appear as follows:
II (b) "742. Purification Labor."

If the condensed uniform classification of accounts and numbering system presented herein seem to meet a demand in the Water Utility "trial run," consideration of an extension of the idea into other municipal utilities might be given.

It is hoped that both groups, city officials and accountants, will try to keep in mind that the objective of the municipal auditing law is to encourage good auditing and good accounting systems, both commensurate with the preparation and use of financial statements that promote and reveal the effectiveness of good management. Such effectiveness usually rests heavily on the use of comparative figures—comparative both as to different years of the same organization and as to different governments or utilities for the same year.

Those accountants or municipalities now using or recommending a satisfactory classification of account titles and numbers may feel privileged to continue under such classification until a modification is suggested.

The title page herein, indicates a brief treatment of two topics (a) classification of accounts and (b) forms of financial statements. In both of these topics it is assumed that the accounts are kept on a double entry basis and that a trial balance is an important tool in making both the classification and the statements most effective. Accordingly using the condensed Classification of Accounts, with appropriate numbering system as a foundation, we have applied them to a practical situations and therefore present herein the following three statements :

1. Trial Balance, Municipal Water Works as of April 30, 1958 (assumed date).
2. Balance Sheet, Municipal Water Works, as of April 30, 1958 (assumed date).
3. Income Statement, Municipal Water Works for fiscal year ended April 30, 1958 (assumed date).

In order to show by implication, at least, how smaller utilities may reduce materially the number of accounts used, we are showing also Schedules I, II and III. They reveal opportunities for smaller utilities to use some generally recognized major headings in accounts and statements but to omit some of the minor items and details usually associated with larger organizations. Public Accountants can and probably will recommend additions to, or reductions from, the list as occasion seems to require.

As in preceding bulletins, the Municipal Audit Division expresses the hope that uniformity can be emphasized in compilation of data about fiscal affairs of municipalities and their utility enterprises. Only by the use of uniformity of procedure can comparable data be obtained either from the formal accounting system or from other arithmetical or statistical records.

Public accountants in their auditing engagements can be very helpful in non-auditing phases of their work also and can assist city officials materially in following the general implications of this condensed procedure and in correlating the data used in the annual supplementary report with the audited statements of the Public Accountant.

Page 68 / Illinois Municipal Review / Mach 1958

PROPOSED CONDENSED CLASSIFICATION OF ACCOUNTS

(Titles and Numbers Only)

BALANCE SHEET ACCOUNTS ASSETS AND OTHER

I. Utility Plant
100 Utility Plant (Includes 100-1, 100-3, 100-3,
100-4, 100-5, and 100-6) 107 Utility Plant Adjustments

II. Investments and Fund Accounts
110 Other Physical Property
111 Investments in Associated Utilities
113 Stocks and Bonds
114 Miscellaneous Investments and Special Funds

III. Current and Accrued Assets
120 Cash
121 Special Deposits
123 Working Funds
123 Temporary Cash Investments
124 Notes Receivable
125 Accounts Receivable
126 Receivables from Associated Utilities
128 Interest and Dividends Receivable
129 Rents Receivable
130 Accrued Utility Revenues
131 Materials and Supplies
132 Prepayments by the Utility
133 Other Current and Accrued Assets

IV. Deferred Debits
140 Unamortized Debt Discount and Expense
141 Extraordinary Property Losses
143 Preliminary Survey and Investigation Charges
143 Clearing Accounts (See Accounts Nos. 901 to 905) 146 Other Deferred Debits

V. Reacquired Securities
153 Reacquired Long-Term Debt

LIABILITIES AND OTHER CREDITS
VI. Long-Term Debt
210 Bonds
313 Advances from Associated Utilities
313 Miscellaneous Long-Term Debt

VII. Current and Accrued Liabilities
330 Notes Payable
231 Notes Receivable Discounted
322 Accounts Payable
233 Payables to Associated Utilities
235 Matured Long-Term Debt
226 Matured Interest
227 Customers' Deposits
228 Taxes Accrued
229 Interest Accrued
330 Other Current and Accrued Liabilities

VIII. Deferred Credits
240 Unamortized Premium on Debt
241 Customers' Advances for Construction
242 Other Deferred Credits

IX. Reserves
350 Reserve for Depreciation of Utility Plant
351 Reserve for Amortization of Limited-Term Utility Investments
353 Reserve for Amortization of Utility Plant Acquisition Adjustments
253 Reserve for Depreciation and Amortization of Other Property
254 Reserve for Uncollectible Accounts 358 Miscellaneous Reserves

X. Contributions Received in Aid of Construction

XI. Capital Investment
270 Capitalized Surplus
271 Earned Surplus

UTILITY PLANT ACCOUNTS SUMMARY CLASSIFICATION
I. Intangible Plant
301 Organization
302 Franchises and Consents
303 Miscellaneous Intangible Plant

II. Tangible Plant
310 Work in Progress
311 Land and Water Rights
312 Structures and Improvements
313 Utility Plant Equipment
314 Boiler Plant Equipment
315 Steam Pumping Equipment
316 Electric Pumping Equipment
317 Oil Engine Pumping Equipment
318 Hydraulic Pumping Equipment
319 Other Power Pumping Equipment
320 Purification System
321 Transmission Mains and Accessories
322 Distribution Mains and Accessories
323 Services
324 Meters
325 Hydrants
326 Fire Mains
327 Other Fire Protection Plant
328 Fountains and Basins
329 Office Furniture and Equipment
330 Transportation Equipment
331 Stores Equipment 333 Shop Equipment
333 Laboratory Equipment
334 Tools and Work Equipment
335 Communication Equipment
336 Miscellaneous Equipment
337 Other Tangible Property
341 Utility Plant Purchased
343 Utility Plant Sold

EARNED SURPLUS ACCOUNT SUMMARY CLASSIFICATION
Credits
371 Earned Surplus (at beginning of period)
400 Credit Balance Transferred from Income Account
401 Miscellaneous Credits to Earned Surplus Total Credits

Page 69 / Illinois Municipal Review / March 1958

Debits
410 Debit Balance Transferred from Income Account
413 Miscellaneous Reservations of Earned Surplus
414 Miscellaneous Debits to Earned Surplus
416 Transfers to Capital Investment (No. 270) Total Debits
271 Earned Surplus (at end of period)

INCOME ACCOUNTS SUMMARY CLASSIFICATION
I. Utility Operating Income
501 Operating Revenues
Operating Revenue Deductions
502 Operating Expenses
503 Depreciation
504 Amortization of Limited-Term Utility Investments
505 Amortization of Utility Plant Acquisition Adjustments
506 Property Losses Chargeable to Operations
507 Taxes
Total Operating Revenue Deductions Net Operating Revenues
508 Income from Utility Plant Leased to Others
509 Rent for Lease of Utility Plant Utility Operating Income

II. Other Income
520 Income from Merchandising, Jobbing and Contract Work
521 Income from Non-Utility Operations
522 Revenues from Lease of Other Physical Property
523 Dividend Revenues
524 Interest Revenues
525 Revenues from Sinking and Other Funds
526 Miscellaneous Non-Operating Revenues
527 Non-Operating Revenue Deductions Total Other Income Gross Income

III. Income Deductions
530 Interest on Long-Term Debt
531 Amortization of Debt Discount and Expense
532 Amortization of Premium on Debt—Cr.
533 Taxes Assumed on Interest
534 Interest on Debt to Associated Utilities
535 Other Interest Charges
536 Interest Charged to Construction—Cr.
537 Miscellaneous Amortization
538 Miscellaneous Income Deductions Total Income Deductions Net Income

IV. Disposition of Net Income
540 Miscellaneous Reservations of Net Income Balance Transferred to Earned Surplus

OPERATING REVENUE ACCOUNTS SUMMARY CLASSIFICATION
Sales of Water
601 Metered Sales to General Customers
602 Flat Rate Sales to General Customers
603 Sales to Irrigation Customers
604 Private Fire Protection
605 Public Fire Protection
606 Other Sales to Public Authorities
607 Sales to Other Water Utilities
608 Interdepartmental Sales Total Water Sales

Other Water Revenues
610 Rent from Water Property
611 Interdepartmental Rents
612 Customers' Forfeited Discounts and Penalties
614 Servicing of Customers' Installations
615 Miscellaneous Other Water Revenue Total Other Water Revenues Total Water Operating Revenues

OPERATING EXPENSE ACCOUNTS SUMMARY CLASSIFICATION
I. Source of Supply Expenses
701 Operation Supervision and Engineering
702 Operation Labor
703 Operation Supplies and Expenses
704 Maintenance Supervision and Engineering
705 Maintenance of Source of Supply Plant
706 Water Purchased for Resale
707 Other Water Source Expenses
708 Rents
709 Joint Expenses—Dr.
710 Joint Expenses—Cr.

II. Power and Pumping Expenses
721 Operation Supervision and Engineering
722 Operation Labor
723 Fuel for Power and Pumping
724 Supplies and Expenses
725 Maintenance Supervision and Engineering
726 Maintenance of Structures and Improvements
727 Maintenance of Power and Pumping Equipment
728 Rents
729 Power Purchased or Transferred—Dr.
730 Power Transferred—Cr.
731 Joint Expenses—Dr.
732 Joint Expenses—Cr.

III. Purification Expenses
741 Operation Supervision and Engineering
742 Purification Labor
743 Purification Supplies and Expenses
744 Maintenance Supervision and Engineering
745 Maintenance of Structures and Improvements
746 Maintenance of Purification Equipment
747 Rents
748 Joint Expenses—Dr.
749 Joint Expenses—Cr.

Page 70 / Illinois Municipal Review / March 1958

IV. Transmission and Distribution Expenses
751 Operation Supervision and Engineering
752 Departmental Office Expenses
753 Operation of Transmission and Distribution Lines
754 Operation of Meters
755 Services on Customers' Premises
756 Maintenance Supervision and Engineering
757 Maintenance of Structures and Improvements
758 Maintenance of Mains
759 Maintenance of Other Distribution Plant
760 Rents
761 Joint Expenses—Dr.
762 Joint Expenses—Cr.
Total Transmission and Distribution Expenses

V. Customers' Accounting and Collecting Expenses
779 Supervision
780 Customers' Contracts, Orders, Meter Reading and Collecting
781 Customers' Billing and Accounting
782 Miscellaneous Expenses
783 Uncollectible Accounts
784 Rents

VI. Sales Promotion Expenses
786 Sales Salaries and Expenses
789 Merchandising, Jobbing and Contract Work

VII. Administrative and General Expenses
790 Salaries of General Officers and Executives
791 Other General Office Salaries
792 Expenses of General Officers and General Office Employees
793 General Office Supplies and Expenses
794 Management and Supervision Fees and Expenses
795 Special Services
796 Special Legal Services
797 Regulatory Expenses
798 Insurance
799 Injuries and Damages
800 Employees' Welfare Expenses and Pensions
801 Miscellaneous General Expenses
802 Maintenance of General Property
803 Rents
804 Commissions Paid Under Agency Sales Contracts
805 Franchise Requirements
806 Duplicate Miscellaneous Charges—Cr.
807 Administrative and General Expenses Transferred—Cr.
808 Joint Expenses—Dr.
809 Joint Expenses—Cr.
Total Administrative and General Expenses

CLEARING ACCOUNTS
901 Charges by Associated Utilities—Clearing
902 Stores Expenses—Clearing
903 Transportation Expenses—Clearing
904 Laboratory Expenses—Clearing
905 Shop Express-Clearing

TRIAL BALANCE, MUNICIPAL WATER WORKS
As Of April 30, 1958
Account
Number	Dr.	Cr.
112 Stocks and Bonds ................	$229,500
114 Miscellaneous Investments ........	58,600
120 Cash ............................	131,200
121 Special Deposits .................	40,000
122 Working Funds ..................	800
124 Notes Receivable .................	9,000
125 Accounts Receivable ..............	150,000
130 Accrued Utility Revenues ........	13,300
250 Reserve for Depreciation of Utility
Plant, Buildings, and Structures
(#312) ........................		$ 74,000
251 Amortization (Reserve for) of Limited-Term Utility Investments . .		25,000
252 Reserve for Depreciation of Equipment, Mains, Hydrants, etc. (Accounts 313-337 inclusive) .......		261,000
254 Reserve for Uncollectible Accounts		7,500
258 Miscellaneous Reserves (Not to be
deducted elsewhere) ............		20,000
131 Materials and Supplies ...........	35,000
132 Prepayments by the Utility .......	5,000
133 Other Current and Accrued Assets.	200
140 Unamortized Debt Discount and Expense ..........................	3,800
143 Clearing- Accounts ................
146 Other Deferred Debits ...........	11,265
210 Bonds ...........................		1,068,000
220 Notes Payable ...................		10,000
222 Accounts Payable ................		60,000
227 Customers' Deposits ..............		26,000
228 Taxes Accrued ...................		35,000
229 Interest Accrued .................		42,600
230 Other Current and Accrued Liabilities ...........................		30,000
242 Other Deferred Credits ...........		9,300
265 Contributions In Aid of Construction ...........................		25,061
270 Capital Investment ...............		620,000
271 Earned Surplus (See also #540) ..		191,214
301 Organization Expense ............	50,000
310 Work in Progress ................	70,000
311 Land and Water Rights ..........	260,000
312 Structures and Improvements .....	400,000
314 Boiler Plant Equipment ..........	26,000
315 Steam Pumping Equipment .......	120,350
316 Electric Pumping Equipment .....	106,900
320 Purification System ..............	160,000
321 Transmission Mains and Accessories	240,000
322 Distribution Mains and Accessories	330,925
323 Services .........................	41,600
324 Meters ...........................	81,000
325 Hydrants ........................	76,000
326 Fire Mains .......................	19,000
329 Office Furniture and Equipment ...	43,825
330 Transportation Equipment ........	15,000
331 Store Equipment .................	5,600
332 Shop Equipment .................	6,000
333 Laboratory Equipment ...........	1,800
335 Communications Equipment .......	6,000
336 Miscellaneous Equipment .........	17,900
503 Depreciation .....................	33,000
504 Amortization of Limited-Term Utility Investments ................	5,000
506 Property Losses Chargeable to Operations .........................	2,000
507 Taxes ...........................	25,000
508 Income from Utility Plant Leased
to Others ......................		16,000
609 Rent for Lease of Utility Plant ...		6,000
520 Income from Merchandising, Job
bing, and Contract Work .......		6,000
521 Income from Non-Utility Operations ..........................		2,000
522 Revenues from Lease of Other
Physical Property ..............		5,000
524 Interest Revenues ................		3,000
525 Revenues from Sinking and Other
Funds .........................		6,000
526 Miscellaneous Non-Operating Revenues ..........................		2,000
627 Non-Operating- Revenue Deductions	6,000
530 Interest on Long-Term Debt ......	34,000
531 Amortization of Debt Discount and
Expense .......................	1,000
532 Amortization of Premium on Debt
—Cr. ..........................		1,000
533 Taxes Assumed on Interest .......	600
535 Other Interest Charges ...........	1,600
536 Interest Charged to Construction—
Cr. ............................		2,000
537 Miscellaneous Amortization .......	600
538 Miscellaneous Income Deductions	1,000
540 Miscellaneous Reservations of Net
Income ........................	20,000
601 Metered Sales to General Customers		366,000
602 Flat Rate Sales to General Customers ........................		60,000
603 Sales to Irrigation Customers .....		20,000
604 Private Fire Protection ..........		10,000
605 Public Fire Protection ...........		40,000
606 Other Sales to Public Authorities .		10,000
607 Sales to Other Water Utilities ....		20,000
608 Interdepartmental Sales ..........		6,006

Page 71 / Illinois Municipal Review / March 1958

Account
Number	Dr.	Cr.
610 Rent from Water Property .......		7,000
611 Interdepartmental Rents ..........		8,000
612 Customers' Forfeited Discounts and
Penalties ......................		2,500
614 Servicing of Customers Installations ..........................		7,000
615 Miscellaneous Other Water Revenues ..........................		5,500
701 Source Operation Supervision and
Engineering ....................	9,600
702 Operation Labor .................	60,400
703 Operation Supplies and Expenses . .	3,000
704 Maintenance Supervision and Engineering ........................	2,300
705 Maintenance of Source of Supply
Plant ..........................	25,000
721 Power Operation Supervision and
Engineering ...................	5,600
722 Power Operation Labor ...........	46,200
723 Fuel for Power and Pumping .....	30,000
724 Power Supplies and Expenses .....	5,000
725 Maintenance Supervision and Engineering ........................	500
726 Maintenance of Structures and Improvements ....................	780
727 Maintenance of Power and Pumping
Equipment .....................	3,320
741 Purification Supervision and Engineering ........................	7,000
742 Purification Labor ................	30.000
743 Purification Supplies and Expenses	16,000
744 Maintenance Supervision and Engineering ........................	2,500
745 Maintenance of Structures and Improvements ....................	1,500
746 Maintenance of Purification Equipment ..........................	4,500
751 Transmission Supervision and Engineering ........................	7,000
752 Departmental Office Expenses .....	2,200
753 Operation of Transmission and Distribution Lines ................	25,800
754 Operation of Meters ..............	5,600
755 Services on Customers' Premises . .	3,800
766 Maintenance Supervision and Engineering ........................	3,800
767 Maintenance of Structures and Improvements ....................	500
758 Maintenance of Mains ............	15,000
759 Maintenance of Other Distribution
Plant ..........................	4,000
779 Supervision Customers' Accounting	4,800
780 Customers' Contracts, Orders, Meter
Reading and Collecting .........	18,500
781 Customers' Billing and Accounting	28,100
782 Miscellaneous Expenses ..........	8,575
783 Uncollectible Accounts ...........	2,425
790 Salaries of General Officers and Executives .......................	7,100
791 Other General Office Salaries .....	8,000
792 Expense of General Officers and
General Office Employees .......	800
793 General Office Supplies and Expenses .........................	1,300
796 Special Legal Services ...........	2,000
	10,000
801 Miscellaneous General Expenses ..	1,000
802 Maintenance of General Property ..	1,500
901 Clearing Accounts ................
905
	$3,310,065	$3,310,065
BALANCE SHEET, MUNICIPAL WATER WORKS
As of April 30, 1958
	As of Fiscal	Year End
ASSETS	4-30-58	4-30-57*
Utility Plant:
Utility Plant in Service .............	$2,007,900	$1,891,500
Construction Work In Progress ......	70,000	149,000
Total Utility Plant (Schedule I) ...	$2,077,900	$2,040,500
Investment and Fund Accounts:
Stocks and Bonds ...................	$229,500	$210,000
	58,600	58,000
Total Investment and Fund Accounts	$ 288,100	$ 268,000
Current and Accrued Assets:
Cash ...............................	$131,200	$ 127,500
Special Deposits ....................	40,000	35,000
Working- Funds .....................	800	800
Notes Receivable ....................	9,000	9,600
Accounts Receivable .................	150,000	155,914
Accrued Utility Revenues ............	13,300	14,000
Materials and Supplies ..............	35,000	35,500
Prepayments by the Utility ..........	5,000	4,500
Other Current and Accrued Assets ...	200	200
Total Current and Accrued Assets ..	$ 384,500	$ 382,914

Account
Number	Dr.	Cr.
Deferred Debits:
Unamortized Debt Discount and Expense .............................	$ 3,800	$3,900
Other Deferred Debits ..............	11,265	11,200
Total Deferred Debits .............	$ 15,065	$ 15,100
Total Assets ......................	$2,765,565	$2,706,514
LIABILITIES, RESERVES AND
NET WORTH	As of Fiscal	Year End.
Long-Term Debt:	4-30-58	4-30-57
Bonds ..............................	$1,068,000	$1,103,000
Current and Accrued Liabilities:
Notes Payable ......................	$ 10,000	$ 9,500
Accounts Payable ...................	50,000	29,000
Customers' Deposits .................	26,000	25,600
Taxes Accrued ......................	35,000	35,800
Interest Accrued ....................	42,500	44,600
Other Current and Accrued Liabilities	30,000	32,000
Total Current and Accrued Liabilities .............................	$ 193,500	$ 176,400
1. In this and succeeding financial statements and schedules, comparative figures are given for the preceding period or year end. Such amounts in this case, as in practice, are obtained from similar statements on file prepared one year earlier. They are not taken from the trial balance reproduced herein.
Deferred Credits:
Miscellaneous Deferred Credits ......	$ 9,300	$ 9,400
Total Deferred Credits ............	$ 9,300	$ 9,400
Reserves:
Reserve for Depreciation of Utility
Plant Buildings (#312) ............	$ 74,000	$ 71,500
Reserve for Amortization of Limited-
Term Utility Investments .........	25,000	23,500
Reserve for Depreciation of Equipment,
Mains, Hydrants, etc., (#313-337) ..	261,000	253,500
Reserve for Uncollectible Accounts . .	7,500	6,500
Miscellaneous Reserves (from Net Income or Surplus) .................	249,500	229,500
Total Reserves ....................	$ 617,000	$ 584,600
Contributions in Aid of Construction ...	$ 25,051	$ 22,000
Capital Investment:
Capitalized Surplus .................	$ 620,000	$ 620,000
Surplus Earned, prior years .........	191,214	156,514
Unappropriated Surplus Earned, year
ended 4-30-58 .....................	41,500	34,700
Total Capital Investment and Sur
plus ............................	$ 852,714	$ 811,214
Total Liabilities, Reserves, and Net
Worth ..........................	$2,765,565	$2,706,514
INCOME STATEMENT, MUNICIPAL WATER WORKS
For Fiscal Year Ended April 30, 1958
	For Fiscal	Year Ended
	4-30-58	4-30-57
Utility Operating Income:
Operating Revenues (Schedule II) ...	$ 540,000	$ 520,000
Less Operating Deductions:
Opera tins Expenses (Schedule III).	415,000	400,000
Depreciation ......................	33,000	30,000
Amortization of Investments .......	5,000	4,000
Property Losses Chargeable to Operations ..........................	2,000
Taxes ............................	25,000	26,000
Total Operating Revenue Deduc
tions .........................	$ 480,000	$ 460,000
Net Operating Revenue (1) ......	$ 60,000	$ 60,000
Income from Utility Plant Leased .....	$ 15,000	$ 10,000
Rent for Lease of Utility Plant ........	5,000	6,000
Miscellaneous Income (2) .......	$ 20,000	$ 16,000
Utility Operating Income (1) plus
(2), (3) .......................	$ 80,000	$ 76,000
Other Income:
Income from Merchandising .........	$ 5,000	$ 5,500
Income from Non-Utility Operations..	2,000	1,500
Revenues from Lease of Other Property ..............................	5,000	5,000
Interest Revenues ..................	3,000	2,000
Revenue from Sinking Funds ........	6,000	4,500
Miscellaneous Non-Operating Revenues	2,000	1,500
	$ 23,000	$ 20,000
Less Non-Operating Revenue Deductions .............................	6,000	5,000
Total Other Income (4) ........	$ 17,000	$ 15,000
Gross Income (3) plus (4), (5) ..	$ 97,000	$ 91,000

Page 72 / Illinois Municipal Review / March 1958

Account
Number	Dr.	Cr.
Other Deductions:
Interest on Long-Term Debt .........	$ 34,000	$35,000
Amortization of Debt Discount and Expense ............................	1,000	1,000
Amortization of Premium on Debt—Cr.	(1,000)	(1,000)
Taxes Assumed on Interest ..........	500	400
Other Interest Charges ..............	1,500	1,000
Interest Charged to Construction—Cr.	(2,000)	(1,000)
Miscellaneous Amortization .........	500	400
Miscellaneous Income Deductions ....	1,000	500
Total Income Deductions (6) ....	$ 35,500	$36,300
Net Income (5) minus (6) .......	$ 61,500	$ 64,700
Miscellaneous Reservations of Net In
come .............................	20,000	20,000
Balance of Net Income transferred to
Earned Surplus ...................	$ 41,500	$ 34,700
SCHEDULE I. MUNICIPAL -WATER WORKS
Utility Plant Items (Total $2,077,900)
	As of	As of
	4-30-58	4-30-57
Major Account Totals:
Organization Expenses ...........	$50,000	$50,000
Water Rights and Land ..........	260,000	242,500
Structures and Improvements ....	400,000	380,000
Utility Plant Equipment .........	1,297,900	1,219,000
Work in Progress ................	70,000	149,000
	$ 2,077,900	$2,040,500
Account
Number
Detailed Accounts In Classification:
311 Water Rights and Land:
Water Rights ..................	$ 120,000	$ 105,000
Reservoir Land ................	29,000	27,000
Power and Pumping Land .......	22,000	22,000
Purification Land ..............	35,000	35,000
Transmission Land ............	22,000	21,500
Standpipe Land ................	3,000	3,000
Distribution Land ..............	6,000	6,000
Office Land ....................	4,000	4,000
Store, Shop and Garage Land ...	20,000	20,000
Total Water Rights and Land.	$260,000	$242,500
312 Structures and Improvements:
Collecting and Impounding Reservoirs ........................	$100,000	$95,000
Wells and Springs .............	100,000	88,000
Other Water Service Structures	85,000	84,000
Power and Pumping Structures	35,000	35,000
Purification Buildings ..........	35,000	33,500
Distribution Standpipe .........	20,000	20,000
Office Buildings ................	10,000	10,000
Stores, Shops and Garage Buildings ........................	15,000	14,500
	$400,000	$380,000
313 Utility Plant Equipment:
314 Boiler Plant Equipment ........	$26,000	$30,000
315 Steam Pumping Equipment ....	120,350	150,000
316 Electric Pumping- Equipment . .	106,900	60,000
320 Purification System ...........	160,000	140,000
321 Transmission Mains and Accessories ......................	240,000	235,000
322 Distribution Mains and Accessories ......................	330,925	295,600
323 Services ......................	41,600	40,800
324 Meters .......................	81,000	78,600
325 Hydrants .....................	76,000	74,500
326 Fire Mains ....................	19,000	19,900
329 Office Furniture and Equipment	43,826	42,300
330 Transportation Equipment .....	15,000	15,500
331 Stores Equipment .............	5,600	5,600
332 Shop Equipment ..............	6,000	5,500
333 Laboratory Equipment .........	1,800	1,800
335 Communications Equipment ....	6,000	6,000
336 Miscellaneous Equipment ......	17,900	17,900
	$1,297,900	$1,219,000
SCHEDULE II. MUNICIPAL WATER WORKS
Operating Revenue Items (Total $540,000)
Account	For Fiscal	Year Ended
Numbers	4-30-58	4-30-57
Sales of Water
601 Metered Sales to General Customers....................	$355,000	$332,000
602 Flat Rate Sales to General Customers ......................	50,000	45,000
603 Sales to Irrigation Customers .	20,000	25,000
604 Private Fire Protection .......	10,000	10,000
605 Public Fire Protection ........	40,000	45,000
606 Other Sales to Public Authorities	10,000	9,000
607 Sales to Other Water Utilities .	20,000	20,000
608 Interdepartmental Sales .......	5,000	5,000
Total Revenue from Sales of
of Water (1) .............	$ 510,000	$ 491,000
Other Water Revenues
610 Rent from Water Property ....	$7,000	$ 7,000
611 Interdepartmental Rents .......	8,000	8,000

Account
Number	Dr.	Cr.
612 Customers' Forfeited Discounts
and Penalties ................	2,500	3,000
614 Servicing of Customers' Installa
tions ........................	7,000	7,500
615 Miscellaneous Other Water Rev
enues .......................	5,500	3,500
Total Other Water Revenues
(2) ........................	$30,000	$29,000
Total Operating Revenues (1)
plus (2) ................. $	$540,000	$520,000
SCHEDULE III. MUNICIPAL WATER WORKS
Operating Expenses (Total $415,000)
Account	For Fiscal	Year Ended
Number	4-30-58	4-30-57
Source of Supply:
701 Operation Supervision and Engineering ......................	$9,600	$9,500
702 Operation Labor ...............	60,400	48,400
703 Operation Supplies and Expenses	3,000	3,200
704 Maintenance Supervision and Engineering ....................	2,300	2,200
705 Maintenance of Source of Supply
Plant ........................	25,000	24,500
Total Source of Supply Expenses ..................... $	100,300	$ 87,800
Power and Pumping
721 Power Operation Supervision and
Engineering ................. $	5,600	$ 5,500
722 Operation Labor - Power ........	46,200	45,200
723 Fuel for Power and Pumping . .	30,000	29,000
724 Supplies and Expenses ........	5,000	6,100
725 Maintenance Supervision and Engineering ....................	500	400
726 Maintenance of Structures and
Improvements ...............	780	700
727 Maintenance of Power and Pumping Equipment ...............	3,320	3,300
Total Power and Pumping Expense ................	91,400	89,200
Purification:
741 Purification Supervision and Engineering ....................	7,000	7,200
742 Purification Labor ............	30,000	29,600
743 Purification Supplies and Expenses .......................	16,000	15,800
744 Maintenance Supervision and Engineering ....................	2,500	2,600
745 Maintenance of Structures and
provements ..................	1,500	1,400
746 Maintenance of Purification
Equipment ...................	4,500	4,400
Total Purification Expense ..........	$61,500	$ 60,900
Transmission and Distribution:
751 Transmission Supervision and Engineering ...................	$ 7,000	$ 6,900
752 Departmental Office Expenses . .	2,200	2,000
753 Operation of Transmission and
Distribution Lines ...........	25,800	25,000
754 Operation of Meters ............	5,600	5,800
755 Services on Customers' Premises	3,800	4,000
756 Maintenance Supervision and Engineering ....................	3,800	3,600
757 Maintenance of Structures and
Improvements ...............	500	450
758 Maintenance of Mains ..........	15,000	14,850
759 Maintenance of Other Distribu
tion Plant ...................	4,000	3,900
Total Transmission and Distri
bution Expenses ............	$ 67,700	$ 66,500
Customers' Accounting and Collecting:
779 Supervision, Customers' Accounting ..........................	$ 4,800	$ 4,600
780 Customers' Contracts, Orders,
Meter Heading and Collecting .	18,500	18,000
781 Customers' Billing and Accounting ..........................	28,100	27,900
782 Miscellaneous Expenses ........	8,575	10,000
783 Uncollectible Accounts .........	2,425	1,400
Total Customers' Accounting
and Collecting Expenses ....	$ 62,400	$ 61,900
Administrative and General:
790 Salaries of General Officers and
Executives ...................	$7,100	$ 7,000
791 Other General Office Salaries . . .	8,000	7,900
792 Expenditures of General Officers
and General Office Employees .	800	900
793 General Office Supplies and Expenses .......................	1,300	1,400
796 Special Legal Services .........	2,000	2,500
798 Insurance ......................	10,000	10,000
801 Miscellaneous General Expenses .	1,000	2,000
802 Maintenance of General Property	1,500	2,000
Total Administrative and Gen
eral Expenses ..............	$ 31,700	$33,700
Total Operating Expenses ....	$415,000	$ 400,000

Page 73 / Illinois Municipal Review / March 1958