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including the 20% contingency, and $461,000 for construction of the storage reservoir, including the <br />20% contingency, for a total of $559,000. <br />The funds required will necessitate that OAC raise assessments to provide the cash flow indicated. <br />Revenue for operations are derived from assessments on 17 the wells; and, the loan repayments for <br />the Well Augmentation Project will be made from assessment on 17 wells. Assessments are <br />presented to members and approved at the annual meeting held in December of each year. The <br />assessments have generally been $1,000 to $2,000 per share since 2005 as shown below. <br />The assessments for the years 2005 to 2008 are summarized are shown in Table 12. <br />TABLE 12 <br />OGILVY AUGMENTATION COMPANY ASSESMENTS <br />yew. Assessm®nts (per well) <br />2008 $ 2,000 <br />2007 $ 1,250 <br />2006 $ 1,250 <br />2005 $ 1,000 <br />The OAC is a relatively new company without any history of long-term debt. OAC anticipates <br />repayment of the CWCB through assessment of its members. The financial condition of the <br />company is solid at the present time. The company has no long term obligations. <br />Table 13 shows the cash flow and annual financial schedule for the Company's operations which <br />includes the proposed $999,765 CWCB loan at 2.5 % interest over a 30-year repayment period. The <br />schedule also includes the 10% share of the project which will have to be paid by the members <br />during design and construction. <br />Table 13 shows the assessment that is levied on 17 individual wells for normal O&M expenses <br />(column 1); the assessments on 17 wells (column 2) for the Well Augmentation Project; and the <br />revenue from special assessments and other income sources are shown in column (4). The expenses <br />for operation and maintenance are shown in column (5). <br />Column (12) entitled "Income Minus Expenses" is the sum of all revenue and expenses for that year <br />with the "Cash Balance" (column 13) being the sum of the previous year's "Cash Balance" plus the <br />current years "Income Minus Expenses". The assessments are established in Table 13 to provided <br />for a positive cash flow each year (column 12) or a minimum cash balance greater than $6,450 in <br />Feasibility Study of the Ogilvy Augmentation Company Page 19 <br />Well Augmentation Project <br />