Common use of Allocation of Revenues and Expenses Clause in Contracts

Allocation of Revenues and Expenses. A. All revenues, receipts and income derived from the operation of the sewer system portion of the Utility System shall be allocated to Hildale City as the owner of the system to the extent permitted by Arizona law for any portion of the sewer system located in Arizona. B. All revenues, receipts and income derived from the operation of the Gas, Water, and Fiber Optic Networking Systems shall be allocated between the Cities as follows: 1. All revenues received from each of the Cities' customer ▇▇▇▇▇▇▇▇ shall be credited to that customer's City. 2. Investment income shall be allocated between the Cities based upon the proportion that each City's balance in the Operation Fund bears to the total balance on deposit therein; and 3. All other revenues, receipts and income shall be allocated between the Cities based upon initial Utility System cost, total energy sales, number of customers, or such other method as shall be fair and reasonable to each of the Cities. All revenues, receipts and income shall be so allocated when received. 4. If any commodity produced by either city is sold at wholesale to another entity, the revenues derived from the sale shall be allocated as outlined in Section 12(C)1. Neither city shall agree to the sale of a commodity produced to another entity without the prior approval of each cities governing body. C. All costs and expenses incurred in the operation of the Gas, Water, and Fiber Optic Networking Systems shall be allocated between the Cities as follows: 1. All costs and expenses shall be allocated on the basis of the proportion of annual commodity usageto each City's Utility customers. The allocation of costs and expenses shall be reassessed annually prior to the beginning of each fiscal year and shall utilize commodity sales figures for the prior calendar. 2. If either city produces a commodity that is intended to be distributed to the customers of the system, the cost of production of the commodity shall be allocated to all customers of the commodity produced, as outlined in Section 12(C)1. 3. Colorado City and Hildale each agree to pay, but solely out of the revenues derived from the operation of the Colorado City portion of the Utility System and the Hildale portion of the Utility System, respectively, and as an operation and maintenance expense of and a first charge on the revenues of such Utility System, all amounts charged to it in respect to the costs and expenses incurred hereunder.

Allocation of Revenues and Expenses. A. All revenues, receipts and income derived from the operation of the sewer system portion of the Utility System shall be allocated to Hildale City as the owner of the system to the extent permitted by Arizona law for any portion of the sewer system located in Arizona. B. All revenues, receipts and income derived from the operation of the Gas, Water, and Fiber Optic Networking Systems shall be allocated between the Cities as follows: 1. All revenues received from each of the Cities' customer ▇▇▇▇▇▇▇▇ shall be credited to that customer's City. 2. Investment income shall be allocated between the Cities based upon the proportion that each City's balance in the Operation Fund bears to the total balance on deposit therein; and 3. All other revenues, receipts and income shall be allocated between the Cities based upon initial Utility System cost, total energy sales, number of customers, or such other method as shall be fair and reasonable to each of the Cities. All revenues, receipts and income shall be so allocated when received. 4. If any commodity produced by either city is sold at wholesale to another entity, the revenues derived from the sale shall be allocated as outlined in Section 12(C)1. Neither city shall agree to the sale of a commodity produced to another entity without the prior approval of each cities governing body. C. All costs and expenses incurred in the operation of the Gas, Water, and Fiber Optic Networking Systems shall be allocated between the Cities as follows: 1. All costs and expenses shall be allocated on the basis of the proportion of annual commodity usageto usage to each City's Utility customers. The allocation of costs and expenses shall be reassessed annually prior to the beginning of each fiscal year and shall utilize commodity sales figures for the prior calendar. 2. If either city produces a commodity that is intended to be distributed to the customers of the system, the cost of production of the commodity shall be allocated to all customers of the commodity produced, as outlined in Section 12(C)1. 3. Colorado City and Hildale each agree to pay, but solely out of the revenues derived from the operation of the Colorado City portion of the Utility System and the Hildale portion of the Utility System, respectively, and as an operation and maintenance expense of and a first charge on the revenues of such Utility System, all amounts charged to it in respect to the costs and expenses incurred hereunder.