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<br />IV. CUSTOMER CLASS DISTRmUTION FACTORS <br /> <br />A. Distribution Factors for Oneration and Maintenance Exnenses <br />All system operation and maintenance expenses are functionalized and allocated according to the <br />allocation units shown in Table A-6 in Appendix A. These functionalized costs should be <br />distributed to the five customer classes based upon the system base and base/IllllX-day~ except for <br />meters, hydrants, billing/collecting and administrative fees. Operating and.rri~intenance expense <br />for the exceptions are allocated as described in detail in the previotlssectiOn.;>Table A-6 in <br />Appendix A gives the cost distribution units for the total test y~~r opeta.~ion andrriaintenance <br />expenses of the City's water utility system allocable to each of the customer classes. <br /> <br />B. Debt Service Cost Distribution <br />All debt service and other capital expenditures should be allocated to the customers on the basis <br />of distribution factors for plant responsibility as well as specificll~age 9fthe proceeds of each <br />bond issue. <br /> <br /> <br />CUy of Paris, Texas <br />Water and Wastewater Cost of Service Study <br />June 2007 <br /> <br />11 <br /> <br />rT-. <br />