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Well Augmentation Subdistrict - Loan Feasibility Study <br />Page 14 <br />ALTERNATIVE NO. 3. PURCHASE WATER SUPPLIES IN EXCESS OF ALTERNATIVE NO. 2 <br />This alternative is similar to Alternative No. 2 but would involve purchases of larger amounts of <br />fully consumable water and storage capacity. The exact amounts and locations of consumable <br />water and storage capacity were not quantified but could include amounts up to approximately <br />15,000 - 20,000 acre -feet. While this alternative is attractive because it greatly expedite <br />devleopment of the WAS system, the alternative was eliminated from further consideration because <br />of the high cost and debt service and the potential impact on WAS to develop additional water <br />supply projects. <br />SELECTED ALTERNATIVE <br />Alteranative No. 2 was selected because of the relative low cost and high positive impact it would <br />have on the ability of WAS constituents to pump their groundwater wells. The following sections of <br />this report address WAS financial situation including revenues and expenses, assets and liabilities, <br />and information concerning WAS's ability to service additional debt, i.e., repayment of the loan in <br />this application to CWCB. <br />FINANCIAL ANALYSIS OF THE WELL AUGMENTATION SUBDISTRICT <br />In 2011 the Well Augmentation Subdistrict's total annual revenues were $1,865,257, and are <br />projected to be $2,202,943 in 2012. Funds in 2011 were obtained from both tax revenues and <br />annual Class D member assessments for plan augmentation. WAS revenues are used to purchase, <br />lease and develop water rights, as well as to operate the annual augmentation plan. Comparative <br />financial information over the period 2005 - 2011 is shown in Table 4. Detailed financial <br />statements for the years 2010 and 2011 are provided as Attachment C. By statute WAS is <br />required to conduct an independent review of its finances (audit) each year, and the audit report <br />for 2011 is provided as Attachment D. WAS's financial budget for 2012 is provided as Attachment <br />E. <br />LeonardRice <br />ENGINEERUNC. <br />