EFFICIENT BUSINESS METHODS AT PASADENA
The business department report for the year ending June 30, 1916, orf the waterworks of Pasadena, Cal., by the Business Manager, Mr. William Selbie shows efficient business methods. The financial report embraces the following schedules and tables: Schedule “A” —A synopsis of each cash transactions only iuserted to show that all cash transactions prove with the City Auditor’s books.
Schedule “B”—Covering everything in the line of income and expense and with supplementary schedules showing details of the various classes..
Schedule “D”—Balance Sheet, with supplements showing details of all fixed capital.
Schedule “E”—Sinking Fund and Bond Interest Account. These reports are so arranged as to show the corresponding totals for las year for purposes of comparison.
In addiion o he above schedules there are some tables which are worthy of study and full of information:
Table 1—General Information; Table 2— Water consumption and revenue for three years classified. Table 3—Automobile costs. Table 4—Water bills statistics; Table 5—Statistics as to water costs; Table 6—Percentage o fannual profit; Table 7—Meter and service department data.
The financial report shows that the water revenue for the year was about $26,000 more than for the prior year, and further, that the percentage of water revenue required to-meet expenses of operation and maintenance proper shows a steady decrease. The year ending June 30, 1914, required 31 per cent. The year ending June 30, 1913, required 24.1 per cent, and the year ending June 30, 1916, required 22.6 per cent. Since the last repart all outside liabilities have been paid up n full, and on September first last year $25,000 of bonds, not due till October 1, 1917, were paid off, thus increasing the surplus account that much, besides saving a actual cash twenty-five months’ interest at $93.75 per month, or $2,343.75 in all, which would otherwise have had to be paid. The balance sheet shows $2,291.49 in the reserve for employees accident liability. This money is embraced in the general water fund credit balance with the autitor, but Business Manager Selbie suggests that as it ought not to be considered available for any other purpose, that the Board instruct that an even $2,000 of this amount be deposited in the bank on an interest bearing time certificate payable to joint order of the City Auditor and the City Treasurer and left in the custody of the Water Department. Another interesting point is the water bill statistics. About 147,000 bills were collected during the year, at an average cost per bill of 4 l-7c. This qovers postage on notices, receipts and correspondence, collectors’ and cashier’s salaries and expense. About 144,000 regular monthly bills were made, at an average cost for printing and making these bills and postal card notices of a little over one cent per set. About 143,000 of the regular monthly bills were collected during the year, of which about 77 per cent, of the number and 80 per cent, of the amount was paid before becoming delinquent. There were paid at the counter about 76 per cent, of the number or 66 per cent, of the amount. There were paid by mail about 14 per cent, of the number or 26 per cent, of the amount. There
were paid to field collectors about 10 per cent, o fthe number or 8 per cent, of the amount. Water bills were rebated, account of charity, amounting to $220.65; account impossible to collect $259.16. The wated Department had no authority to require deposit to guarantee payment of doubtful bills.