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. . CHAPTER VII PROJECT EVALUATION . The primary source of funding for the District is the district tax assessment against the 19,134 acres wUhln the District. AddUional sources of Income Include water assessments, Interest earned on deposUs, and other miscellaneous sources, The District has been conducting major dam rehabllUatlon measures since 1985 which have been funded oUl of the general operating budget for the District. In order to pay for the recent repair measures on Dams No, 2 and 3 and in anticipation of fUlure expendUures for repairs, the District has been increasing the acreage assessment on a fairly regular basis since 1984, The recent assessment history is listed in Table 3, The $2,00 surcharge (assessment increased to $18,00 per year) in 1991 will generate an additional $38,300 per year which will be allocated exclusively for repayment of future debt incurred in the course of additional rehabllUationjreplacement. . . . During the 1986 through 1989 period (1989 is the latest year for which information Is available), the District has been spending an average of nearly $50,000 per year for major engineering exploration and design, and for construction of embankment rehabilitation measures for Dams No, 2 and 3, The distribution of the extraordinary expenses during the four year period was estimated from the total expense and the period during which repairs were performed, Within this periOd, the District also purchased several major pieces of construction and maintenance equipment, which are reflected In the "Operations and Maintenance" totals, The overall District deficit averaged less than $3,000 per year, The District's balance sheets for 1986 through 1989 are summarized in Table 3, Recently, the District has operated with a fairly substantial cash reserve for emergencies, The end-of-year emergency reserve balance, which has averaged aboUl $100,000 In recent years, Is shown on the last line of Table 3, . . . Also shown in Table 3 Is a projection of future revenues and expenditures which demonstrate the District's ability to repay the CWCB loan. Financing for the lqan repayment Is based upon the 1991 increase in assessments and the reduction of extraordinary engineering and construction expenses, The projection amounts to aboUl $50,400 total available for the loan repayment and other "new" uses, such as contribUlions to an emergency reserve fund, Note that the Interest income and "othe(' income, which has historically averaged aboUl $36,800 per year, has . 18 .