CLASS "A" OR "B" ANNUAL REPORT. Sunshine Utilities of Central Florida, Inc. Exact Legal Name of Respondent. 363-W Certificate Number(s)

Transcription

1 CLASS "A" OR "B" ANNUAL REPORT OF IV a:;j. 3Cf- /5 - ;?-J?. Sunshine Utilities of Central Florida, Inc. Exact Legal Name of Respondent 363-W Certificate Number(s) Submitted To The STATE OF FLORIDA PUBLIC SERVICE COMMISSION FOR THE YEAR ENDED December 31, 2015 Form PSC/ECR 003-W (Rev. 12/99)

2 THIS PAGE LEFT BLANK INTENTIONALLY

3 GENERAL INSTRUCTIONS 1. Prepare this report in conformity with the 1996 National Association of Regulatory Utility Commissioners Uniform System of Accounts for Water and/or Wastewater Utilities (USOA). 2. Interpret all accounting words and phrases in accordance with the USOA. 3. Complete each question fully and accurately, even if it has been answered in a previous annual report. Enter the word "None" where it truly and completely states the fact. 4. For any question, section, or page which is not applicable to the respondent, enter the words "Not Applicable". Do not omit any pages. 5. Where dates are called for, the month and day should be stated as well as the year. 6. All schedules requiring dollar entries should be rounded to the nearest dollar unless otherwise specifically indicated. 7. Complete this report by means which result in a permanent record, such as by computer or typewriter. 8. If there is not enough room on any schedule, an additional page or pages may be added; provided the format of the added schedule matches the format of the schedule with not enough room. Such a schedule should reference the appropriate schedules, state the name of the utility, and state the year of the report. 9. If it is necessary or desirable to insert additional statements for the purpose of further explanation of schedules, such statement should be made at the bottom of the page or an additional page inserted. Any additional pages should state the name of the utility, the year of the report, and reference the appropriate schedule. 10. For water and wastewater utilities with more than one rate group and/or system, water and wastewater pages should be completed for each rate group and/or system group. These pages should be grouped together and tabbed by rate group and/or system. 11. All other water and wastewater operations not regulated by the Commission and other regulated industries should be reported as "Other than Reporting Systems". 12. Financial information for multiple systems charging rates which are covered under the same tariff should be reported as one system. However, the engineering data must be reported by individual system. 13. For water and wastewater utilities with more than one system, one (1) copy of workpapers showing the consolidation of systems for the operating sections, should be filed with the annual report. 14. The report should be filled out in quadruplicate and the original and two copies returned by March 31, of the year following the date of the report. The report should be returned to: The fourth copy should be retained by the utility. Florida Public Service Commission Division of Economic Regulation 2540 Shumard Oak Boulevard Tallahassee, Florida i

4 TABLE OF CONTENTS SCHEDULE PAGE SCHEDULE PAGE EXECUTIVE SUMMARY Certification E-1 Business Contracts with Officers, Directors General Information E-2 and Affiliates E-7 Directory of Personnel Who Contact the FPSC E-3 Affiliation of Officers and Directors E-8 Company Profile E-4 Businesses which are a Byproduct, Coproduct or Parent / Affiliate Organization Chart E-5 Joint Product Result of Providing Service E-9 Compensation of Officers & Directors E-6 Business Transactions with Related Parties. E-10 Part I and II FINANCIAL SECTION Comparative Balance Sheet - F-1 Unamortized Debt Discount / Expense / Premium F-13 Assets and Other Debits Extraordinary Property Losses F-13 Comparative Balance Sheet - F-2 Miscellaneous Deferred Debits F-14 Equity Capital and Liabilities Capital Stock F-15 Comparative Operating Statement F-3 Bonds F-15 Year End Rate Base F-4 Statement of Retained Earnings F-16 Year End Capital Structure F-5 Advances from Associated Companies F-17 Capital Structure Adjustments F-6 Other Long Term Debt F-17 Utility Plant F-7 Notes Payable F-18 Utility Plant Acquisition Adjustments F-7 Accounts Payable to Associated Companies F-18 Accumulated Depreciation F-8 Accrued Interest and Expense F-19 Accumulated Amortization F-8 Miscellaneous Current & Accrued Liabilities F-20 Regulatory Commission Expense - F-9 Advances for Construction F-20 Amortization of Rate Case Expense Other Deferred Credits F-21 Nonutility Property F-9 Contributions In Aid of Construction F-22 Special Deposits F-9 Accumulated Amortization of CIAC F-22 Investments and Special Funds F-10 Reconciliation of Reported Net Income with F-23 Accounts and Notes Receivable - Net F-11 Taxable Income for Federal Income Taxes Accounts Receivable from Associated Companies F-12 Notes Receivable from Associated Companies F-12 Miscellaneous Current & Accrued Assets F-12 ii

5 TABLE OF CONTENTS SCHEDULE PAGE SCHEDULE PAGE WATER OPERATION SECTION Water Listing of System Groups W-1 CIAC Additions / Amortization W-8 Year End Water Rate Base W-2 Water Operating Revenue W-9 Water Operating Statement W-3 Water Utility Expense Accounts W-10 Water Utility Plant Accounts W-4 Pumping and Purchased Water Statistics, W-11 Basis for Water Depreciation Charges W-5 Source Supply Analysis of Entries in Water Depreciation W-6 Water Treatment Plant Information W-12 Reserve Calculation of ERC's W-13 Contributions In Aid of Construction W-7 Other Water System Information W-14 WASTEWATER OPERATION SECTION Wastewater Listing of System Groups S-1 Contributions In Aid of Construction S-7 Year End Wastewater Rate Base S-2 CIAC Additions / Amortization S-8 Wastewater Operating Statement S-3 Wastewater Operating Revenue S-9 Wastewater Utility Plant Accounts S-4 Wastewater Utility Expense Accounts S-10 Basis for Wastewater Depreciation Charges S-5 Calculation of ERC's S-11 Analysis of Entries in Wastewater Depreciation S-6 Wastewater Treatment Plant Information S-12 Reserve Other Wastewater System Information S-13 iii

6 THIS PAGE LEFT BLANK INTENTIONALLY

7 EXECUTIVE SUMMARY

8 THIS PAGE LEFT BLANK INTENTIONALLY

9

10 ANNUAL REPORT OF December 31, 2015 Sunshine Utilities of Central Florida, Inc. County: Marion (Exact Name of Utility) List below the exact mailing address of the utility for which normal correspondence should be sent: E Highway 25 Bellview, Florida Telephone: E Mail Address: WEB Site: Sunshine State One-Call of Florida, Inc. Member Number SU-1134 Name and address of person to whom correspondence concerning this report should be addressed: John Q. Adams II, CPA Adams & Company, P.A. 910 SW 1rst Avenue, Suite 201 Ocala, FL Telephone: (352) List below the address of where the utility's books and records are located: E Highway 25 Bellview, Florida Telephone: List below any groups auditing or reviewing the records and operations: Date of original organization of the utility: September 01, 1974 Check the appropriate business entity of the utility as filed with the Internal Revenue Service Individual Partnership Sub S Corporation 1120 Corporation X List below every corporation or person owning or holding directly or indirectly 5% or more of the voting securities of the utility: Percent Name Ownership 1. "Hodges Family Trust - Christmas" - Dewaine Christmas & James Hodges Jr. Co-trustees 25% 2. "Hodges Family Trust - Hodges" - Dewaine Christmas & James Hodges Jr. Co-trustees 25% 3. "Hodges Family Trust - Rosin" - Dewaine Christmas & James Hodges Jr. Co-trustees 25% 4. "Hodges Family Trust - Stone" - Dewaine Christmas & James Hodges Jr. Co-trustees 25% 5. Trust split into four separate trust pursuant to QSST election IRC 1361 while maintaining 6. control by the co-trustees for the sole beneficiary of Clarise Hodges E-2

11 DIRECTORY OF PERSONNEL WHO CONTACT THE FLORIDA PUBLIC SERVICE COMMISSION NAME OF COMPANY TITLE OR ORGANIZATIONAL USUAL PURPOSE REPRESENTATIVE POSITION UNIT TITLE FOR CONTACT (1) (2) (3) WITH FPSC Sunshine Utilities of All Utility Matters Dewaine W. Christmas President Central Florida, Inc Sunshine Utilities of All Utility Matters Pamela N. Christmas Secretary Central Florida, Inc Adams & Company, P.A. Rate and Accounting John Q. Adams, II CPA Matters Sunshine Utilities of All Utility Matters James H Hodges, Jr. Vice President Central Florida, Inc Sunshine Utilities of All Utility Matters Jane M. Rop Treasurer Central Florida, Inc (1) Also list appropriate legal counsel, accountants and others who may not be on general payroll. (2) Provide individual telephone numbers if the person is not normally reached at the company. (3) Name of company employed by if not on general payroll. E-3

12 COMPANY PROFILE Provide a brief narrative company profile which covers the following areas: A. Brief company history. B. Public services rendered. C. Major goals and objectives. D. Major operating divisions and functions. E. Current and projected growth patterns. F. Major transactions having a material effect on operations. A. The company was organized to provide potable water service to various subdivisions in Marion and Citrus Counties B. The company provides water treatement and distribution services to customers in its certicated area. C. The primary goal of the Company is to continue rendering quality service to its existing customers. D. The Company provides water treatement and distribution services, only in Marion and Citrus Counties. E. The Company expects to continue an average growth rate of approximately 1%. E-4

13 PARENT / AFFILIATE ORGANIZATION CHART Current as of December 31, 2015 Complete below an organizational chart that show all parents, subsidiaries and affiliates of the utility. The chart must also show the relationship between the utility and affiliates listed on E-7, E-10(a) and E-10(b). Sunshine Utilities of Central Florida, Inc Sunshine Utilities (Marion County Division) Heights Water Company (Citrus County Division) (NOT REGULATED BY PSC) E-5

14 COMPENSATION OF OFFICERS For each officer, list the time spent on respondent as an officer compared to time spent on total business activities and the compensation received as an officer from the respondent. % OF TIME SPENT AS OFFICER OF OFFICERS' NAME TITLE THE UTILITY COMPENSATION (a) (b) (c) (d) Dewaine W. Christmas President 100% $ 60,117 James H. Hodges, Jr. Vice President 100% 60,844 Pamela N. Christmas Secretary 100% 43,834 Jane M. Rop Treasurer 100% 42,794 COMPENSATION OF DIRECTORS For each director, list the number of director meetings attended by each director and the compensation received as a director from the respondent. NUMBER OF DIRECTORS' MEETINGS DIRECTORS' NAME TITLE ATTENDED COMPENSATION (a) (b) (c) (d) Dewaine W. Christmas Director 100% $ None James H. Hodges, Jr. Director 100% None E-6

15 BUSINESS CONTRACTS WITH OFFICERS, DIRECTORS AND AFFILIATES List all contracts, agreements, or other business arrangements* entered into during the calendar year (other than compensation related to position with Respondents) between the Respondent and officer and director listed on page E-6. In addition, provide the same information with respect to professional services for each firm, partnership, or organization with which the officer or director is affiliated. NAME OF IDENTIFICATION NAME AND OFFICER, DIRECTOR OF SERVICE ADDRESS OF OR AFFILIATE OR PRODUCT AMOUNT AFFILIATED ENTITY (a) (b) (c) (d) None $ - * Business Agreement, for this schedule, shall mean any oral or written business deal which binds the concerned parties for products or services during the reporting year or future years. Although the Respondent and/or other companies will benefit from the arrangement, the officer or director is, however, acting on his behalf or for the benefit of other companies or persons. E-7

16 AFFILIATION OF OFFICERS AND DIRECTORS For each of the officials listed on page E-6, list the principal occupation or business affiliations or connections with any other business or financial organizations, firms, or partnerships. For purposes of this part, an official will be considered to have an affiliation with any business or financial organization, firm or partnership in which he is an officer, director, trustee, partner, or a person exercising similar functions. PRINCIPAL OCCUPATION NAME AND ADDRESS OR BUSINESS AFFILIATION OR OF AFFILIATION OR NAME AFFILIATION CONNECTION CONNECTION (a) (b) (c) (d) None E-8

17 BUSINESSES WHICH ARE A BY-PRODUCT, COPRODUCT OR JOINT-PRODUCT RESULT OF PROVIDING WATER OR WASTEWATER SERVICE Complete the following for any business which is conducted as a byproduct, coproduct, or joint product as a result of providing water and / or wastewater service. This would include any business which requires the use of utility land and facilities. Examples of these types of businesses would be orange groves, nurseries, tree farms, fertilizer manufacturing, etc. This would not include any business for which the assets are properly included in Account Nonutility Property along with the associated revenue and expenses segregated out as nonutility also. ASSETS REVENUES EXPENSES BUSINESS OR BOOK COST ACCOUNT REVENUES ACCOUNT EXPENSES ACCOUNT SERVICE CONDUCTED OF ASSETS NUMBER GENERATED NUMBER INCURRED NUMBER (a) (b) (c) (d) (e) (f) (g) None $ $ $ E-9

18 BUSINESS TRANSACTIONS WITH RELATED PARTIES List each contract, agreement, or other business transaction exceeding a cumulative amount of $500 in any on year, entered into between the Respondent and a business or financial organization, firm, or partnership named on pages E-2 and E-6, identifying the parties, amounts, dates and product, and asset, or service involved. Part I. Specific Instructions: Services and Products Received or Provided 1. Enter in this part all transactions involving services and products received or provided. 2. Below are some types of transactions to include: -management, legal and accounting services -computer services -engineering & construction services -repairing and servicing of equipment -material and supplies furnished -leasing of structures, land, and equipment -rental transactions -sale, purchase or transfer of various products DESCRIPTION CONTRACT OR ANNUAL CHARGES NAME OF COMPANY SERVICE AND/OR AGREEMENT (P)urchased OR RELATED PARTY NAME OF PRODUCT EFFECTIVE DATES (S)old AMOUNT (a) (b) (c) (d) (e) CH Utility Holdings, LLC Lot Lease 7/10/2014 $ 105,077 CH Office Holdings, LLC Office Lease 7/10/2014 9,760 E-10(a)

19 BUSINESS TRANSACTIONS WITH RELATED PARTIES (Cont'd) Part II. Specific Instructions: Sale, Purchase and Transfer of Assets 1. Enter in this part all transactions relating 3. The columnar instructions follow: to the purchase, sale, or transfer of assets. (a) Enter name of related party or company. 2 Below are examples of some types of transactions to include: (b) Describe briefly the type of assets purchased, sold or transferred. -purchase, sale or transfer of equipment (c) Enter the total received or paid. Indicate purchase with "P" and sale with "S". -purchase, sale or transfer of land and structures (d) Enter the net book value for each item reported. -purchase, sale or transfer of securities (e) Enter the net profit or loss for each item reported. (column (c) - column (d)) -noncash transfers of assets (f) Enter the fair market value for each item reported. In space below or in a supplemental -noncash dividends other than stock dividends schedule, describe the basis used to calculate fair market value. -write-off of bad debts or loans SALE OR NAME OF COMPANY PURCHASE NET BOOK FAIR MARKET OR RELATED PARTY DESCRIPTION OF ITEMS PRICE VALUE GAIN OR LOSS VALUE (a) (b) (c) (d) (e) (f) None $ $ $ $ E-10(b)

20 THIS PAGE LEFT BLANK INTENTIONALLY

21 FINANCIAL SECTION

22 COMPARATIVE BALANCE SHEET ASSETS AND OTHER DEBITS ACCT. REF. PREVIOUS CURRENT NO. ACCOUNT NAME PAGE YEAR YEAR (a) (b) (c) (d) (e) UTILITY PLANT Utility Plant F-7 $ 3,145,315 $ 3,243, Less: Accumulated Depreciation and Amortization F-8 2,334,946 2,400,064 Net Plant $ 810,369 $ 843, Utility Plant Acquisition adjustment (Net) F-7 19,819 19, * Other Utility Plant Adjustments Total Net Utility Plant $ 830,188 $ 862,443 OTHER PROPERTY AND INVESTMENTS 121 Nonutility Property F-9 $ 0 $ Less: Accumulated Depreciation and Amortization 0 0 Net Nonutility Property $ 0 $ Investment in Associated Companies F Utility Investments F Other Investments F Special Funds F-10 Total Other Property & Investments $ 0 $ 0 CURRENT AND ACCRUED ASSETS 131 Cash $ 16,828 $ 8, Special Deposits F-9 69,488 72, Other Special Deposits F-9 10, Working Funds 135 Temporary Cash Investments Accounts and Notes Receivable, Less Accumulated Provision for Uncollectible Accounts F-11 42,056 36, Accounts Receivable from Associated Companies F Notes Receivable from Associated Companies F Material and Supplies 161 Stores Expense 162 Prepayments 1, Accrued Interest and Dividends Receivable 172 * Rents Receivable 173 * Accrued Utility Revenues 174 Miscellaneous Current and Accrued Assets F-12 Total Current and Accrued Assets $ 139,975 $ 117,941 * Not Applicable for Class B Utilities F-1(a)

23 COMPARATIVE BALANCE SHEET ASSETS AND OTHER DEBITS ACCT. REF. PREVIOUS CURRENT NO. ACCOUNT NAME PAGE YEAR YEAR (a) (b) (c) (d) (e) DEFERRED DEBITS 181 Unamortized Debt Discount & Expense F-13 $ $ 182 Extraordinary Property Losses F Preliminary Survey & Investigation Charges Clearing Accounts * Temporary Facilities Miscellaneous Deferred Debits F-14 36,623 35, * Research & Development Expenditures Accumulated Deferred Income Taxes - - Total Deferred Debits $ 36,623 $ 35,471 TOTAL ASSETS AND OTHER DEBITS $ 1,006,786 $ 1,015,855 * Not Applicable for Class B Utilities NOTES TO THE BALANCE SHEET The space below is provided for important notes regarding the balance sheet. F-1(b)

24 COMPARATIVE BALANCE SHEET EQUITY CAPITAL AND LIABILITIES ACCT. REF. PREVIOUS CURRENT NO. ACCOUNT NAME PAGE YEAR YEAR (a) (b) (c) (d) (e) EQUITY CAPITAL 201 Common Stock Issued F-15 $ 100 $ Preferred Stock Issued F ,205 * Capital Stock Subscribed 203,206 * Capital Stock Liability for Conversion 207 * Premium on Capital Stock 209 * Reduction in Par or Stated Value of Capital Stock 210 * Gain on Resale or Cancellation of Reacquired Capital Stock 211 Other Paid - In Capital 457, , Discount On Capital Stock 213 Capital Stock Expense Retained Earnings F-16 (314,571) (332,346) 216 Reacquired Capital Stock 218 Proprietary Capital (Proprietorship and Partnership Only) Total Equity Capital $ 142,674 $ 142,246 LONG TERM DEBT 221 Bonds F * Reacquired Bonds 223 Advances from Associated Companies F Other Long Term Debt F-17 62,372 59,372 Total Long Term Debt $ 62,372 $ 59,372 CURRENT AND ACCRUED LIABILITIES 231 Accounts Payable 86,149 90, Notes Payable F-18 23,807 65, Accounts Payable to Associated Companies F Notes Payable to Associated Companies F Customer Deposits 60,925 63, Accrued Taxes W/S , Accrued Interest F Accrued Dividends 239 Matured Long Term Debt 240 Matured Interest 241 Miscellaneous Current & Accrued Liabilities F-20 27,892 6,000 Total Current & Accrued Liabilities $ 198,806 $ 246,590 * Not Applicable for Class B Utilities F-2(a)

25 COMPARATIVE BALANCE SHEET EQUITY CAPITAL AND LIABILITIES ACCT. REF. PREVIOUS CURRENT NO. ACCOUNT NAME PAGE YEAR YEAR (a) (b) (c) (d) (e) DEFERRED CREDITS 251 Unamortized Premium On Debt F-13 $ - $ Advances For Construction F Other Deferred Credits F Accumulated Deferred Investment Tax Credits Total Deferred Credits $ - $ - OPERATING RESERVES 261 Property Insurance Reserve $ $ 262 Injuries & Damages Reserve 263 Pensions and Benefits Reserve 265 Miscellaneous Operating Reserves Total Operating Reserves $ - $ - CONTRIBUTIONS IN AID OF CONSTRUCTION 271 Contributions in Aid of Construction F-22 $ 1,904,363 $ 1,915, Accumulated Amortization of Contributions in Aid of Construction F-22 (1,301,429) (1,348,326) Total Net C.I.A.C. $ 602,934 $ 567,647 ACCUMULATED DEFERRED INCOME TAXES 281 Accumulated Deferred Income Taxes - Accelerated Depreciation $ $ 282 Accumulated Deferred Income Taxes - Liberalized Depreciation 283 Accumulated Deferred Income Taxes - Other Total Accumulated Deferred Income Tax $ - $ - TOTAL EQUITY CAPITAL AND LIABILITIES $ 1,006,786 $ 1,015,855 F-2(b)

26 COMPARATIVE OPERATING STATEMENT ACCT. REF. PREVIOUS CURRENT NO. ACCOUNT NAME PAGE YEAR YEAR * (a) (b) (c) (d) (e) UTILITY OPERATING INCOME 400 Operating Revenues F-3(b) $ 1,067,111 $ 1,081, , 530 Less: Guaranteed Revenue and AFPI F-3(b) - - Net Operating Revenues $ 1,067,111 $ 1,081, Operating Expenses F-3(b) $ 932,127 $ 952, Depreciation Expense: F-3(b) $ 85,630 $ 99,900 Less: Amortization of CIAC F-22 48,438 46,896 Net Depreciation Expense $ 37,192 $ 53, Amortization of Utility Plant Acquisition Adjustment F-3(b) Amortization Expense (Other than CIAC) F-3(b) Taxes Other Than Income W/S-3 90,375 95, Current Income Taxes W/S Deferred Federal Income Taxes W/S Deferred State Income Taxes W/S Provision for Deferred Income Taxes - Credit W/S Investment Tax Credits Deferred to Future Periods W/S Investment Tax Credits Restored to Operating Income W/S Utility Operating Expenses $ 1,060,076 $ 1,101,340 Net Utility Operating Income $ 7,035 $ (20,244) 469, 530 Add Back: Guaranteed Revenue and AFPI F-3(b) Income From Utility Plant Leased to Others Gains (losses) From Disposition of Utility Property Allowance for Funds Used During Construction - - Total Utility Operating Income [Enter here and on Page F-3(c)] $ 7,035 $ (20,244) F-3(a) * For each account, Column e should agree with Columns f, g and h on F-3(b)

27 UTILITY NAME: Sunshine Utilities of Central Florida, Inc. YEAR OF REPORT December 31, 2015 COMPARATIVE OPERATING STATEMENT (Cont'd) OTHER THAN WATER WASTEWATER REPORTING SCHEDULE W-3 * SCHEDULE S-3 * SYSTEMS (f) (g) (h) $ 1,051,095 $ - $ 30,001 - $ - $ 1,051,095 $ - $ 30,001 $ 919,507 $ - $ 33,271 97,455 $ - 2,445 46,435 $ $ 51,020 $ - $ 1, $ - (363) - $ - 92,503 $ - 2,672 - $ - - $ - - $ - - $ - - $ - - $ - $ 1,063,776 $ - $ 37,564 $ (12,681) $ - $ (7,563) - $ - - $ - - $ $ - $ (12,681) $ - $ (7,563) * Total of Schedules W-3 / S-3 for all rate groups. F-3(b)

28 COMPARATIVE OPERATING STATEMENT (Cont'd) ACCT. REF. PREVIOUS CURRENT NO. ACCOUNT NAME PAGE YEAR YEAR (a) (b) (c) (d) (e) Total Utility Operating Income [from page F-3(a)] $ 7,035 $ (20,244) OTHER INCOME AND DEDUCTIONS 415 Revenues-Merchandising, Jobbing, and Contract Deductions $ $ 416 Costs & Expenses of Merchandising Jobbing, and Contract Work 419 Interest and Dividend Income Nonutility Income 4,570 5, Miscellaneous Nonutility Expenses Total Other Income and Deductions $ 4,629 $ 5,649 TAXES APPLICABLE TO OTHER INCOME Taxes Other Than Income $ $ Income Taxes Provision for Deferred Income Taxes Provision for Deferred Income Taxes - Credit Investment Tax Credits - Net Investment Tax Credits Restored to Operating Income Total Taxes Applicable To Other Income $ - $ - INTEREST EXPENSE 427 Interest Expense F-19 $ (1,713) $ (3,180) 428 Amortization of Debt Discount & Expense F Amortization of Premium on Debt F-13 Total Interest Expense $ (1,713) $ (3,180) EXTRAORDINARY ITEMS 433 Extraordinary Income $ $ 434 Extraordinary Deductions Income Taxes, Extraordinary Items Total Extraordinary Items $ - $ - NET INCOME $ 9,951 $ (17,775) Explain Extraordinary Income: F-3(c)

29 SCHEDULE OF YEAR END RATE BASE ACCT. REF. WATER WASTEWATER NO. ACCOUNT NAME PAGE UTILITY UTILITY (a) (b) (c) (d) (e) 101 Utility Plant In Service F-7 $ 3,163,089 $ - Less: Nonused and Useful Plant (1) 57, Accumulated Depreciation F-8 2,351, Accumulated Amortization F Contributions in Aid of Construction F-22 1,897, Advances for Construction F-20 - Subtotal $ (1,143,470) $ - Add: 272 Accumulated Amortization of Contributions in Aid of Construction F-22 1,336,730 - Subtotal $ 193,260 $ 0 Plus or Minus: 114 Acquisition Adjustments (2) F-7 29, Accumulated Amortization of Acquisition Adjustments (2) F-7 (8,952) - Working Capital Allowance (3) 114,938 - Other (Specify): 105 Construction in Process 67 - RATE BASE $ 329,151 $ - NET UTILITY OPERATING INCOME $ (12,681) $ - ACHIEVED RATE OF RETURN (Operating Income / Rate Base) -3.85% NOTES : (1) Estimate based on the methodology used in the last rate proceeding. (2) Include only those Acquisition Adjustments that have been approved by the Commission. (3) Calculation consistent with last rate proceeding. In absence of a rate proceeding, Class A utilities will use the Balance Sheet Method and Class B Utilities will use the One-eighth Operating and Maintenance Expense Method. F-4

30 SCHEDULE OF CURRENT COST OF CAPITAL CONSISTENT WITH THE METHODOLOGY USED IN THE LAST RATE PROCEEDING (1) WEIGHTED DOLLAR PERCENTAGE ACTUAL COST CLASS OF CAPITAL AMOUNT (2) OF CAPITAL COST RATES (3) (c x d) (a) (b) (c) (d) (e) Common Equity $ Preferred Stock - Long Term Debt - Customer Deposits - Tax Credits - Zero Cost - Tax Credits - Weighted Cost - Deferred Income Taxes - Other (Explain) - - Total $ 100 (1) If the utility's capital structure is not used, explain which capital structure is used. (2) Should equal amounts on Schedule F-6, Column (g). (3) Mid-point of the last authorized Return On Equity or current leverage formula if none has been established. Must be calculated using the same methodology used in the last rate proceeding using current annual report year end amounts and cost rates. APPROVED RETURN ON EQUITY Current Commission Return on Equity: 9.13 Commission order approving Return on Equity: PAA-WU APPROVED AFUDC RATE COMPLETION ONLY REQUIRED IF AFUDC WAS CHARGED DURING YEAR Current Commission Approved AFUDC rate: % Commission order approving AFUDC rate: If any utility capitalized any charge in lieu of AFUDC (such as interest only), state the basis of the charge, an explanation as to why AFUDC was not charged and the percentage capitalized. F-5

31 SCHEDULE OF CAPITAL STRUCTURE ADJUSTMENTS CONSISTENT WITH THE METHODOLOGY USED IN THE LAST RATE PROCEEDING NON- OTHER (1) OTHER (1) CLASS OF PER BOOK NON-UTILITY JURISDICTIONAL ADJUSTMENTS ADJUSTMENTS CAPITAL CAPITAL BALANCE ADJUSTMENTS ADJUSTMENTS SPECIFIC PRO RATA STRUCTURE (a) (b) (c) (d) (e) (f) (g) Common Equity $ 100 $ $ $ $ $ Preferred Stock Long Term Debt Customer Deposits Tax Credits - Zero Cost Tax Credits - Weighted Cost Deferred Inc. Taxes Other (Explain) Total $ 100 $ $ $ $ $ (1) Explain below all adjustments made in Columns (e) and (f): F-6

32 UTILITY PLANT ACCOUNTS OTHER THAN ACCT. REPORTING NO. DESCRIPTION WATER WASTEWATER SYSTEMS TOTAL (a) (b) (c) (d) (e) (f) Plant Accounts: 101 Utility Plant In Service $ 3,163,089 $ $ 79,915 $ 3,243, Utility Plant Leased to Other Property Held for Future Use Utility Plant Purchased or Sold Construction Work in Progress Completed Construction Not Classified - Total Utility Plant $ 3,163,156 $ - $ 79,915 $ 3,243,071 UTILITY PLANT ACQUISITION ADJUSTMENTS ACCOUNTS 114 AND 115 Report each acquisition adjustment and related accumulated amortization separately. For any acquisition adjustments approved by the Commission, include the Order Number. OTHER THAN ACCT. REPORTING NO. DESCRIPTION WATER WASTEWATER SYSTEMS TOTAL (a) (b) (c) (d) (e) (f) 114 Acquisition Adjustment Heights Water Company $ 10,000 $ 10,000 Acq Adj - Sandy Acres 39,523 39,523 Acq Adj - Quail Run (19,685) (19,685) Acq Adj - Comm. Water (14,548) (14,548) - Total Plant Acquisition Adjustments $ 29,838 $ - $ (14,548) $ 15, Accumulated Amortization AA Heights Water Company$ 3,000 $ 3,000 AA Acq Adj - Sandy Acres 11,857 11,857 AA Acq Adj - Quail Run (5,905) (5,905) AA Acq Adj - Comm. Water (13,098) (13,098) - Total Accumulated Amortization $ 8,952 $ - $ (13,098) $ (4,146) Net Acquisition Adjustments $ 20,886 $ - $ (1,450) $ 19,436 F-7

33 ACCUMULATED DEPRECIATION ( ACCT. 108 ) AND AMORTIZATION (ACCT. 110) OTHER THAN REPORTING DESCRIPTION WATER WASTEWATER SYSTEMS TOTAL (a) (b) (c) (d) (e) ACCUMULATED DEPRECIATION Account 108 Balance first of year $ 2,288,414 $ $ 46,532 $ 2,334,946 Credit during year: Accruals charged to: Account (1) $ 97,455 $ $ 2,445 $ 99,900 Account (2) - Account (2) - Other Accounts (specify): Salvage - - Other Credits (Specify): - - as per auditor auditor adjustment - Total Credits $ 97,455 $ - $ 2,445 $ 99,900 Debits during year: Book cost of plant retired 34, ,782 Cost of Removal - Other Debits (specify): Total Debits $ 34,172 $ - $ 610 $ 34,782 Balance end of year $ 2,351,697 $ - $ 48,367 $ 2,400,064 ACCUMULATED AMORTIZATION Account 110 Balance first of year $ $ $ $ - Credit during year: cruals charged to: $ $ $ $ - Account (3) - Other Accounts (specify): - - Total credits $ - $ - $ - $ - Debits during year: Book cost of plant retired - Other debits (specify): - - Total Debits $ - $ - $ - $ - Balance end of year $ - $ - $ - $ - (1) Account 108 for Class B utilities. (2) Not applicable for Class B utilities. (3) Account 110 for Class B utilities. F-8

34 REGULATORY COMMISSION EXPENSE AMORTIZATION OF RATE CASE EXPENSE (ACCOUNTS 666 AND 766) CHARGED OFF EXPENSE DURING YEAR DESCRIPTION OF CASE INCURRED (DOCKET NO.) DURING YEAR ACCT. AMOUNT (a) (b) (d) (e) WU $ $ 12,350 Total $ 666 $ 12,350 NONUTILITY PROPERTY (ACCOUNT 121) Report separately each item of property with a book cost of $25,000 or more included in Account 121. Other Items may be grouped by classes of property. BEGINNING ENDING YEAR DESCRIPTION YEAR ADDITIONS REDUCTIONS BALANCE (a) (b) (c) (d) (e) None $ $ $ $ Total Nonutility Property $ - $ - $ - $ - SPECIAL DEPOSITS ( ACCOUNTS 132 AND 133) Report hereunder all special deposits carried in Accounts 132 and 133. DESCRIPTION OF SPECIAL DEPOSITS (a) YEAR END BOOK COST (b) SPECIAL DEPOSITS (Account 132): Customer Deposits $ 72,172 Total Special Deposits $ 72,172 OTHER SPECIAL DEPOSITS (Account 133): Interim Rate Reserve $ - Health Insurance Co-Pay 394 Total Other Special Deposits $ 394 F-9

35 INVESTMENTS AND SPECIAL FUNDS ACCOUNTS Report hereunder all investments and special funds carried in Accounts 123 through 127. FACE OR YEAR END DESCRIPTION OF SECURITY OR SPECIAL FUND PAR VALUE BOOK COST (a) (b) (c) INVESTMENT IN ASSOCIATED COMPANIES (Account 123): None $ $ Total Investment in Associated Companies $ UTILITY INVESTMENTS (Account 124): None $ $ Total Utility Investment $ OTHER INVESTMENTS (Account 125): $ $ None Total Other Investment $ SPECIAL FUNDS (Class A Utilities: Accounts 126 and 127; Class B Utilities: Account 127): $ None Total Special Funds $ F-10

36 ACCOUNTS AND NOTES RECEIVABLE - NET ACCOUNTS Report hereunder all accounts and notes receivable included in Accounts 141, 142, and 144. Amounts included in Amounts included in Accounts 142 and 144 should be listed individually. DESCRIPTION TOTAL (a) (b) CUSTOMER ACCOUNTS RECEIVABLE (Account 141): Water $ 35,498 Wastewater Other Total Customer Accounts Receivable $ 35,498 OTHER ACCOUNTS RECEIVABLE ( Account 142): Employee accounts receivable $ 1,302 Total Other Accounts Receivable $ 1,302 NOTES RECEIVABLE (Account 144 ): $ None Total Notes Receivable $ - Total Accounts and Notes Receivable $ 36,800 ACCUMULATED PROVISION FOR UNCOLLECTIBLE ACCOUNTS ( Account 143) Balance first of year $ Add: Provision for uncollectibles for current year $ Collection of accounts previously written off Utility Accounts Others Total Additions $ Deduct accounts written off during year: Utility Accounts Others Total accounts written off $ Balance end of year $ - TOTAL ACCOUNTS AND NOTES RECEIVABLE - NET $ 36,800 F-11

37 ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES ACCOUNT 145 Report each account receivable from associated companies separately. DESCRIPTION (a) TOTAL (b) None $ Total $ NOTES RECEIVABLE FROM ASSOCIATED COMPANIES ACCOUNT 146 Report each note receivable from associated companies separately. INTEREST DESCRIPTION RATE TOTAL (a) (b) (c) %$ None % % % % % % Total $ MISCELLANEOUS CURRENT AND ACCRUED ASSETS ACCOUNT 174 DESCRIPTION - Provide itemized listing (a) BALANCE END OF YEAR (b) None $ Total Miscellaneous Current and Accrued Liabilities $ F-12

38 UNAMORTIZED DEBT DISCOUNT AND EXPENSE AND PREMIUM ON DEBT ACCOUNTS 181 AND 251 Report the net discount and expense or premium separately for each security issue. AMOUNT WRITTEN OFF YEAR END DESCRIPTION DURING YEAR BALANCE (a) (b) (c) UNAMORTIZED DEBT DISCOUNT AND EXPENSE (Account 181): None $ $ Total Unamortized Debt Discount and Expense $ $ UNAMORTIZED PREMIUM ON DEBT (Account 251): None $ $ Total Unamortized Premium on Debt $ $ - EXTRAORDINARY PROPERTY LOSSES ACCOUNT 182 Report each item separately. DESCRIPTION (a) TOTAL (b) None $ Total Extraordinary Property Losses $ F-13

39 MISCELLANEOUS DEFERRED DEBITS ACCOUNT 186 AMOUNT WRITTEN OFF YEAR END DESCRIPTION - Provide itemized listing DURING YEAR BALANCE (a) (b) (c) DEFERRED RATE CASE EXPENSE (Class A Utilities: Account 186.1) $ 12,350 $ - Total Deferred Rate Case Expense $ 12,350 $ - OTHER DEFERRED DEBITS (Class A Utilities: Account 186.2): 3 year well maintenance & testing $ 6,447 19,727 5 year tank testing 6,006 15,744 Total Other Deferred Debits $ 12,453 $ 35,471 REGULATORY ASSETS (Class A Utilities: Account ): $ $ Total Regulatory Assets $ - $ - TOTAL MISCELLANEOUS DEFERRED DEBITS $ 24,803 $ 35,471 F-14

40 CAPITAL STOCK ACCOUNTS 201 AND 204* DESCRIPTION RATE TOTAL (a) (b) (c) COMMON STOCK Par or stated value per share % $ 1 Shares authorized 7,500 Shares issued and outstanding 100 Total par value of stock issued % $ 100 Dividends declared per share for year % $ PREFERRED STOCK Par or stated value per share None % $ Shares authorized Shares issued and outstanding Total par value of stock issued % $ Dividends declared per share for year % $ * Account 204 not applicable for Class B utilities. BONDS ACCOUNT 221 INTEREST PRINCIPAL DESCRIPTION OF OBLIGATION ANNUAL FIXED OR AMOUNT PER (INCLUDING DATE OF ISSUE AND DATE OF MATURITY) RATE VARIABLE * BALANCE SHEET (a) (b) (c) (d) % $ None % % % % % % % % Total $ * For variable rate obligations, provide the basis for the rate. (i.e.. prime + 2%, etc.) F-15

41 STATEMENT OF RETAINED EARNINGS 1. Dividends should be shown for each class and series of capital stock. Show amounts as dividends per share. 2. Show separately the state and federal income tax effect of items shown in Account No ACCT. NO. DESCRIPTION AMOUNTS (a) (b) (c) 215 Unappropriated Retained Earnings: Balance Beginning of Year $ (314,571) Changes to Account: 439 Adjustments to Retained Earnings ( requires Commission approval prior to use): Credits: $ - Total Credits: $ - Debits: $ Total Debits: $ Balance Transferred from Income $ (17,775) 436 Appropriations of Retained Earnings: Total Appropriations of Retained Earnings $ - Dividends Declared: 437 Preferred Stock Dividends Declared 438 Common Stock Dividends Declared Shareholder Distributions - Total Dividends Declared $ Year end Balance $ (332,346) 214 Appropriated Retained Earnings (state balance and purpose of each appropriated amount at year end): 214 Total Appropriated Retained Earnings $ - Total Retained Earnings $ (332,346) Notes to Statement of Retained Earnings: F-16

42 ADVANCES FROM ASSOCIATED COMPANIES ACCOUNT 223 Report each advance separately. DESCRIPTION (a) TOTAL (b) None $ Total $ - OTHER LONG-TERM DEBT ACCOUNT 224 INTEREST PRINCIPAL DESCRIPTION OF OBLIGATION ANNUAL FIXED OR AMOUNT PER (INCLUDING DATE OF ISSUE AND DATE OF MATURITY) RATE VARIABLE * BALANCE SHEET (a) (b) (c) (d) Devoloper Payments Due Harper Boulder Hill 0.00 % $ 286 Developer Payments Due Ellison Country Walk 0.00 % 519 Developer Payments Due Albright Hilltop 0.00 % 7,946 Developer Payments Due Williamson Northwoods 0.00 % 1,589 Developer Payments Due Ellison Stonehill 0.00 % 278 Developer Payments Due Labuinger Silverwood Villa 0.00 % 100 Developer Payments Due Seyler Conventry 0.00 % 3,180 Developer Payments Due Lake Bryant Estates 0.00 % 3,635 Developer Payments Due Albright Lake Weir Hgts 2nd Add 0.00 % 3,612 Developer Payments Due Tuscany Hills 0.00 % 18,750 Developer Payments Due Lexington Estates Developer AGR 0.00 % 19,477 % % % % % Total $ 59,372 * For variable rate obligations, provide the basis for the rate. (i.e.. prime + 2%, etc.) F-17

43 NOTES PAYABLE ACCOUNTS 232 AND 234 INTEREST PRINCIPAL DESCRIPTION OF OBLIGATION ANNUAL FIXED OR AMOUNT PER (INCLUDING DATE OF ISSUE AND DATE OF MATURITY) RATE VARIABLE * BALANCE SHEET (a) (b) (c) (d) NOTES PAYABLE ( Account 232): % $ - L/P Kyocera Copier 0.00 % Fixed 4,074 N/P Tract A QR 5.25 % Fixed 13,436 Line of Credit 5.50 % Prime + 2% 48,000 % % % % Total Account 232 $ 65,510 NOTES PAYABLE TO ASSOC. COMPANIES (Account 234): % $ None % % % % % % % Total Account 234 $ - * For variable rate obligations, provide the basis for the rate. (i.e.. prime + 2%, etc.) ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES ACCOUNT 233 Report each account payable separately. DESCRIPTION (a) TOTAL (b) None $ Total $ - F-18

44 ACCRUED INTEREST AND EXPENSE ACCOUNTS 237 AND 427 INTEREST ACCRUED BALANCE DURING YEAR INTEREST DESCRIPTION BEGINNING ACCT. PAID DURING BALANCE END OF DEBIT OF YEAR DEBIT AMOUNT YEAR OF YEAR (a) (b) (c) (d) (e) (f) ACCOUNT NO Accrued Interest on Long Term Debt $ $ $ $ Total Account $ - $ - $ - $ - ACCOUNT NO Accrued Interest on Other Liabilities Customer Deposits $ $ 1,941 1,796 $ 165 Tract A QR Line of Credit Total Account $ 20 $ 3,180 $ 3,035 $ 165 Total Account 237 (1) $ 20 $ 3,180 $ 3,035 $ 165 INTEREST EXPENSED: Total accrual Account $ 3,180 (1) Must agree to F-2 (a), Beginning and Less Capitalized Interest Portion of AFUDC: Ending Balance of Accrued Interest. Net Interest Expensed to Account No. 427 (2) $ 3,180 (2) Must agree to F-3 (c), Current Year Interest Expense F-19

45 MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES ACCOUNT 241 DESCRIPTION - Provide itemized listing (a) BALANCE END OF YEAR (b) $ Accrued Payroll 6,000 Payroll Taxes Payable - Total Miscellaneous Current and Accrued Liabilities $ 6,000 ADVANCES FOR CONSTRUCTION ACCOUNT 252 BALANCE DEBITS BEGINNING ACCT. BALANCE END NAME OF PAYOR * OF YEAR DEBIT AMOUNT CREDITS OF YEAR (a) (b) (c) (d) (e) (f) $ 252 $ $ Total $ - $ - $ - $ - * Report advances separately by reporting group, designating water or wastewater in column (a). F-20

46 OTHER DEFERRED CREDITS ACCOUNT 253 AMOUNT WRITTEN OFF YEAR END DESCRIPTION - Provide itemized listing DURING YEAR BALANCE (a) (b) (c) REGULATORY LIABILITIES (Class A Utilities: Account 253.1): None $ $ Total Regulatory Liabilities $ - $ - OTHER DEFERRED LIABILITIES (Class A Utilities: Account 253.2): None $ $ Total Other Deferred Liabilities $ - $ - TOTAL OTHER DEFERRED CREDITS $ - $ - F-21

47 CONTRIBUTIONS IN AID OF CONSTRUCTION ACCOUNT 271 W & WW OTHER WATER WASTEWATER THAN SYSTEM DESCRIPTION (W-7) (S-7) REPORTING TOTAL (a) (b) (c) (d) (e) Balance first of year $ 1,886,513 $ - $ 17,850 $ 1,904,363 Add credits during year: $ 10, ,610 Less debit charged during the year $ $ - $ $ - Total Contribution In Aid of Construction $ 1,897,258 $ - $ 18,715 $ 1,915,973 ACCUMULATED AMORTIZATION OF CONTRIBUTIONS IN AID OF CONSTRUCTION ACCOUNT 272 W & WW OTHER WATER WASTEWATER THAN SYSTEM DESCRIPTION (W-8(a)) (S-8(a)) REPORTING TOTAL (a) (b) (c) (d) (e) Balance first of year $ 1,290,295 $ - $ 11,134 $ 1,301,429 Debits during the year: $ 46, $ 46,897 Credits during the year $ - $ - $ $ - Total Accumulated Amortization of Contributions In Aid of Construction $ 1,336,730 $ - $ 11,596 $ 1,348,326 F-22

48 RECONCILIATION OF REPORTED NET INCOME WITH TAXABLE INCOME FOR FEDERAL INCOME TAXES (UTILITY OPERATIONS) 1. The reconciliation should include the same detail as furnished on Schedule M-1 of the federal tax return for the year. The reconciliation shall be submitted even though there is no taxable income for the year. Descriptions should clearly indicate the nature of each reconciling amount and show the computations of all tax accruals. 2. If the utility is a member of a group which files a consolidated federal tax return, reconcile reported net income with taxable net income as if a separate return were to be filed, indicating intercompany amounts to be eliminated in such consolidated return. State names of group members, tax assigned to each group member, and basis of allocation, assignments or sharing of the consolidated tax among the group members. DESCRIPTION REF. NO. AMOUNT (a) (b) (c) Net income for the year F-3(c) $ Reconciling items for the year: Taxable income not reported on books: Deductions recorded on books not deducted for return: Income recorded on books not included in return: Deduction on return not charged against book income: Federal tax net income $ - Computation of tax : This Corporation is an "S" Corporation, therfore this schedule is not applicable F-23

49 WATER OPERATION SECTION

50 WATER LISTING OF SYSTEM GROUPS List below the name of each reporting system and its certificate number. Those systems which have been consolidated under the same tariff should be assigned a group number. Each individual system which has not been consolidated should be assigned its own group number. The water financial schedules (W-2 through W-10) should be filed for the group in total. The water engineering schedules (W-11 through W-14) must be filed for each system in the group. All of the following water pages (W-2 through W-14) should be completed for each group and arranged by group number. CERTIFICATE GROUP SYSTEM NAME / COUNTY NUMBER NUMBER Sunshine Utilities (Marion County - Quail Run & Ponerosa Pines) 363W 1 Sunshine Utilities (Marion County - All Except Quail Run & Ponderosa Pines 363W 4 Note: On August 1, 1999 Citrus County took over monitoring responsibilties Therefore Citrus County is no longer included in this report. W-1

51 WATER OPERATION SECTION GROUP 1

52 Sunshine Utilities (Marion County - Quail Run & Ponerosa Pines) SCHEDULE OF YEAR END WATER RATE BASE ACCT. REFERENCE WATER NO. ACCOUNT NAME PAGE UTILITY (a) (b) (c) (d) 101 Utility Plant In Service W-4(b) $ 195,373 Less: Nonused and Useful Plant (1) Accumulated Depreciation W-6(b) 58, Accumulated Amortization Contributions in Aid of Construction W-7 18, Advances for Construction F-20 - Subtotal $ 118,110 Add: 272 Accumulated Amortization of Contributions in Aid of Construction W-8(a) $ 5,532 Subtotal $ 123,642 Plus or Minus: 114 Acquisition Adjustments (2) F-7 (9,685) 115 Accumulated Amortization of Acquisition Adjustments (2) F-7 2,906 Working Capital Allowance (3) 7,520 Other (Specify): 105 Construction in Process - WATER RATE BASE $ 124,383 WATER OPERATING INCOME W-3 $ 11,312 ACHIEVED RATE OF RETURN (Water Operating Income / Water Rate Base) 9.09% NOTES : (1) Estimate based on the methodology used in the last rate proceeding. (2) Include only those Acquisition Adjustments that have been approved by the Commission. (3) Calculation consistent with last rate proceeding. In absence of a rate proceeding, Class A utilities will use the Balance Sheet Method and Class B Utilities will use the One-eighth Operating and Maintenance Expense Method. W-2 GROUP 1

53 Sunshine Utilities (Marion County - Quail Run & Ponerosa Pines) WATER OPERATING STATEMENT ACCT. REFERENCE CURRENT NO. ACCOUNT NAME PAGE YEAR (a) (b) (c) (d) UTILITY OPERATING INCOME 400 Operating Revenues W-9 $ 82, Less: Guaranteed Revenue and AFPI W-9 - Net Operating Revenues $ 82, Operating Expenses W-10(a) $ 60, Depreciation Expense W-6(a) 5,208 Less: Amortization of CIAC W-8(a) 512 Net Depreciation Expense $ 4, Amortization of Utility Plant Acquisition Adjustment F-7 (242) 407 Amortization Expense (Other than CIAC) F-8 - Taxes Other Than Income Utility Regulatory Assessment Fee 3, Property Taxes 1, Payroll Taxes 1, Other Taxes and Licenses 408 Total Taxes Other Than Income $ 6, Income Taxes Deferred Federal Income Taxes Deferred State Income Taxes Provision for Deferred Income Taxes - Credit Investment Tax Credits Deferred to Future Periods Investment Tax Credits Restored to Operating Income Utility Operating Expenses $ 70,866 Utility Operating Income $ 11,312 Add Back: 469 Guaranteed Revenue (and AFPI) W-9 $ Income From Utility Plant Leased to Others 414 Gains (losses) From Disposition of Utility Property Allowance for Funds Used During Construction Total Utility Operating Income $ 11,312 W-3 GROUP 1

54 Sunshine Utilities (Marion County - Quail Run & Ponerosa Pines) WATER UTILITY PLANT ACCOUNTS ACCT. PREVIOUS CURRENT NO. ACCOUNT NAME YEAR ADDITIONS RETIREMENTS YEAR (a) (b) (c) (d) (e) (f) 301 Organization $ 0 $ $ Franchises Land and Land Rights 36, , Structures and Improvements 5,207 5, Collecting and Impounding Reservoirs Lake, River and Other Intakes Wells and Springs 43, , Infiltration Galleries and Tunnels Supply Mains Power Generation Equipment Pumping Equipment 18,905 3, , Water Treatment Equipment 7, , Distribution Reservoirs and Standpipes 9,371 32,544-2,343 39, Transmission and Distribution Mains 11, , Services 8, , Meters and Meter Installations 11, , Hydrants Backflow Prevention Devices Other Plant Miscellaneous Equipment Office Furniture and Equipment 5, , Transportation Equipment 1, , Stores Equipment Tools, Shop and Garage Equipment Laboratory Equipment Power Operated Equipment Communication Equipment Miscellaneous Equipment Abandonment of Regional Plant 0 0 TOTAL WATER PLANT $ 159,612 $ 38,339 $ -2,578 $ 195,373 NOTE: Any adjustments made to reclassify property from one account to another must be footnoted. W-4(a) GROUP 1

55 Sunshine Utilities (Marion County - Quail Run & Ponerosa Pines) WATER UTILITY PLANT MATRIX SOURCE TRANSMISSION OF SUPPLY WATER AND ACCT. CURRENT INTANGIBLE AND PUMPING TREATMENT DISTRIBUTION GENERAL NO. ACCOUNT NAME YEAR PLANT PLANT PLANT PLANT PLANT (a) (b) (c) (d) (e) (f) (g) (h) 301 Organization $ 0 $ 0 $ $ $ $ 302 Franchises Land and Land Rights 36,113 36, Structures and Improvements 5,207 5, Collecting and Impounding Reservoirs Lake, River and Other Intakes Wells and Springs 43,921 43, Infiltration Galleries and Tunnels Supply Mains Power Generation Equipment Pumping Equipment 22,512 22, Water Treatment Equipment 7,911 7, Distribution Reservoirs and Standpipes 39,572 39, Transmission and Distribution Mains 11,648 11, Services 8,427 8, Meters and Meter Installations 12,356 12, Hydrants Backflow Prevention Devices Other Plant Miscellaneous Equipment Office Furniture and Equipment 5,927 5, Transportation Equipment 1,013 1, Stores Equipment Tools, Shop and Garage Equipment Laboratory Equipment Power Operated Equipment Communication Equipment Miscellaneous Equipment Abandonment of Regional Plant 0 0 TOTAL WATER PLANT $ 195,373 $ 0 $ 107,753 $ 7,911 $ 72,003 $ 7,706 W-4(b) GROUP 1

56 Sunshine Utilities (Marion County - Quail Run & Ponerosa Pines) BASIS FOR WATER DEPRECIATION CHARGES AVERAGE AVERAGE DEPRECIATION SERVICE NET RATE APPLIED ACCT. LIFE IN SALVAGE IN IN PERCENT NO. ACCOUNT NAME YEARS PERCENT (100% - d) / c (a) (b) (c) (d) (e) 304 Structures and Improvements % 305 Collecting and Impounding Reservoirs 306 Lake, River and Other Intakes 307 Wells and Springs % 308 Infiltration Galleries and Tunnels 309 Supply Mains % 310 Power Generation Equipment % 311 Pumping Equipment % 320 Water Treatment Equipment % 330 Distribution Reservoirs and Standpipes % 331 Transmission and Distribution Mains % 333 Services % 334 Meters and Meter Installations % 335 Hydrants % 336 Backflow Prevention Devices 339 Other Plant Miscellaneous Equipment % 340 Office Furniture and Equipment % 341 Transportation Equipment % 342 Stores Equipment % 343 Tools, Shop and Garage Equipment % 344 Laboratory Equipment % 345 Power Operated Equipment % 346 Communication Equipment % 347 Miscellaneous Equipment % 349 Abandonment of Regional Plant % Water Plant Composite Depreciation Rate * * If depreciation rates prescribed by this Commission are on a total composite basis, entries should be made on this line only. W-5 GROUP 1

57 Sunshine Utilities (Marion County - Quail Run & Ponerosa Pines) ANALYSIS OF ENTRIES IN WATER ACCUMULATED DEPRECIATION BALANCE TOTAL ACCT. AT BEGINNING OTHER CREDITS NO. ACCOUNT NAME OF YEAR ACCRUALS CREDITS * ( d + e ) (a) (b) (c) (d) (e) (f) 301 Organization $ 0 $ 0 $ Structures and Improvements 5, Collecting and Impounding Reservoirs Lake, River and Other Intakes Wells and Springs 8,693 1,462 1, Infiltration Galleries and Tunnels Supply Mains Power Generation Equipment Pumping Equipment 11,789 1,091 1, Water Treatment Equipment 1, Distribution Reservoirs and Standpipes 9, Transmission and Distribution Mains 10, Services Meters and Meter Installations 4, Hydrants Backflow Prevention Devices Other Plant Miscellaneous Equipment Office Furniture and Equipment 3, Transportation Equipment Stores Equipment Tools, Shop and Garage Equipment Laboratory Equipment Power Operated Equipment Communication Equipment Miscellaneous Equipment Abandonment of Regional Plant TOTAL WATER ACCUMULATED DEPRECIATION $ 55,902 $ 5,208 $ 0 $ 5,208 * Auditor Adjustment W-6(a) Use ( ) to denote reversal entries. GROUP 1