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Contributions in aid of construction property: operating expense
Publication year - 1982
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.1002/j.1551-8833.1982.tb04831.x
Subject(s) - depreciation (economics) , appeal , property (philosophy) , business , law , law and economics , economics , political science , microeconomics , profit (economics) , philosophy , epistemology , financial capital , capital formation
A Florida appellate court ruled that a county ordinance authorized a board of commissioners to allow depreciation on contributions in aid of construction property to a private water company as an operating expense. Although a utility rate increase which included depreciation of CIAC property as an operating expense was overruled on appeal by a home owner's association, the appellate court said that depreciation of CIAC property was allowable as an operating expense. The trial court should have ordered that the reserve be established as a condition of collecting the depreciation.