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Inflation
<br /> Inflation has been quite low for a number of years and would not be
<br /> significant for this project except for the fact that it has been seven years since
<br /> the $3 million bond was calculated and posted, and the project will probably
<br /> take at least two more years to complete.
<br /> The following table illustrates the approximate effect of inflation on the
<br /> budget for this project. It is my understanding that the $3 million bond initially
<br /> was established and posted in 1988 and then reevaluated/affirmed in 1991.
<br /> Hence, the table begins with the year 1991. DMG expenditures shown on the
<br /> table are from the DMG accounting sheets. I understand that MCR expended
<br /> approximately $800,000 during the six years 1992-1997 (mostly on structure
<br /> dismantle). I do not know exactly when the money was spent. Hence, I have
<br /> divided that expenditure evenly throughout those six years. (The Consumer
<br /> Price Index-US values shown in the table were taken from CDA/Wiesenberger.)
<br /> Effect of Inflation on this Project
<br /> CPI MCR DMG CPI
<br /> Adjusted Spent Spent Adjusted Yearly
<br /> ear Budget Estimate Actual Residual CPI Inflation
<br /> 1991 $3,000,000 $ 0 $ 0 $3,000,000 3.06% $91 ,800
<br /> 1992 $3,091 ,800 $133,000 $ 0 $2,958,800 2.87% $84,918
<br /> 1993 $3,043,718 $133,000 $ 0 $2,910,718 2.78% $80,918
<br /> 1994 $2,991 ,636 $133,000 $2,000 $2,856,636 2.68% $76,558
<br /> 1995 $2,933,193 $133,000 $481 ,000 $2,319,193 2.47% $57,284
<br /> 1996 $2,376,477 $133,000 $423,000 $1 ,820,477 3.39% $61 ,714
<br /> 1997 $1 ,882,192 $133,000 $237,000 $1 ,512,192 1 .70% $25,707
<br /> 1998 $1 ,537,899 $ 0 $107,000 $1 ,430,899 1 .80% $25,756
<br /> Sub-Totalsi $798,0001 $1 , 250,000 $504,655
<br /> Future (Estimated) --------
<br /> 1999 $1 ,456,655 $ 0 $500,000 $956,655 2.00% $19, 133
<br /> 2000 $975,788 $ 0 $452,000 $523,788 2.00% $10,476
<br /> Totalsl $798,0001 $2,202,000 r $534,264
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