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Table 2 Schedule of Proiected Operatin~ Revenue and Operatin~ Expenditures <br />Annual Annual Oaeratin~ <br />Year Revenues* Exnenditures** Annual Net Ooeratin¢ Gain/Loss*** <br />Actual 2007 $2,871,082 $2,629,239 $241,843 <br />Projected <br />(unaudited) <br />2008 <br />$2,889,452 <br />$2,744,263 <br />$145,189 <br />Projected 2009 $2,986,619 $2,873,121 $113,498 <br />Projected 2010 $3,150,883 $2,973,680 $177,203 <br />Projected 2011 $3,324,182 $3,077,759 $246,423 <br />Projected 2012 $3,507,012 $3,185,481 $321,531 <br />Projected 2013 $3,699,897 $3,296,972 $402,925 <br />Projected 2014 $3,903,392 $3,412,366 $491,025 <br />Projected 2015 $4,118,078 $3,531,799 $586,279 <br />Projected 2016 $4,344,572 $3,655,412 $689,160 <br />Projected 2017 $4,583,524 $3,783,352 $800,172 <br />Projected 2018 $4,835,618 $3,915,769 $419,849 <br />Projected 2019 $5,101,577 $4,052,821 $1,048,756 <br />Projected 2020 $5,382,163 $4,194,670 $1,187,494 <br />Projected 2021 $5,678,182 $4,341,483 $1,336,699 <br />Projected 2022 $5,990,482 $4,493,435 $1,497,047 <br />Projected 2023 $6,319,959 $4,650,705 $1,669,254 <br />Projected 2024 $6,667,557 $4,813,480 $1,854,077 <br />Projected 2025 $7,034,272 $4,981,952 $2,052,321 <br />Projected 2026 $7,421,157 $5,156,320 $2,264,837 <br />Projected 2027 $7,829,321 $5,336,791 $2,492,530 <br />Projected 2028 $8,259,934 $5,523,579 $2,736,355 <br />Projected 2029 $8,714,230 $5,716,904 $2,997,326 <br />* includes Water and Sanitation Service Fees, net investment income, specific ownership taxes, other misc..revenue; <br />excludes property tax revenue. Based on 1% annual increase in water usage and 4.5~ annual increase in service fees. <br />*'~ Includes Water and Sanitation Operations and General and Administrative Costs; Excludes Debt Service <br />Based on Operating expenditures increasing due to inflation by 3.5~ annualiy. <br />*** Money available for repayment of loan and the capital replacement of infrastrudure. <br />District Revenue and Repayment Sources <br />The District currently receives property tax revenue for the repayment of a Generai <br />Obligation Bond. Revenue projections are based on the assumption that the tax <br />revenue will not continue after the bond is defeased in 2013. The total income and <br />expenses in Table 2 will remain the same regardless. <br />10 <br />