To all Lessees
The Board would like to take this opportunity to thank the wider Mt Hotham community for their continued support and commitment to the Wastewater Reuse and Water Conservation Project (the Project). The Project will be a significant contributor to the sustainable future of the resort. It will become an icon project of national significance that will increase environmental flows to regional waterways, reinforcing the future viability of the regional economy and underpin community prosperity in the region.
This Project is the outcome of the strong community, business and government partnership driven by the Board. This partnering has culminated in securing financial and in kind resources to enable the Project to proceed. Subsequently the Minister for Water and Environment, John Thwaites launched the Wastewater Reuse and Water Conservation Project on the 30thJuly 2005. The total cost of the project is $8.36m, this is made up of $4.18m grant from the Victorian Water Trust, $2.09m from the Mt Hotham Ski Company and $2.09m from the Board.
During the proposal’s development stage, the Board held numerous stakeholder forums and provided regular progress reports on the Project. These presentations also indicated the anticipated level of financial support required if our submission was successful. It was acknowledged that the Board would need to introduce a levy based on FECA in order to fund this component. The purpose of this letter is to now advise what that financial impact will be.
The total cost of the Board’s component has now been approved at $2.09m. This will initially be covered through a loan from TCV, with annual repayments of $190,000 over a 20 year period. At its meeting of 19th September 2005, the Board considered options for repaying this loan and the quantum that could be funded from annual surplus vs a levy based on FECA. The Board has established that, without severely impacting on other capital requirements, the amount reliably available out of surplus is around $100,000 per annum.
Consequently this led the Board to decide that the borrowings should be repaid over 20 years by way of this $100k from surplus, and a 3.5% annual levy on FECA for the life of the loan.
It is proposed that the 3.5% levy be applied to the FECA base commencing 1st November 2005. You will each be contacted shortly with the new rates.
Once again I would like to thank all those involved in assisting the Board to achieve this very positive outcome and look forward to continue the spirit of partnership this Project has forged.
Chief Executive Officer