Kunia Water Association Inc

Variable cost fund - this fund is used to account for assessments and the portion of operating costs identified as "variable operating costs", as defined in the declaration, that fluctuate depending upon the amount of water delivered. Variable operating cost assessments are charged to each member based on the actual metered amount of water delivered to the member's delivery point, such as electric costs to run the pumps to deliver water to the members. Approximately 380 million gallons of water was delivered.

Capital reserve fund - this fund is used to account for assessments for "capital recovery costs" incurred to keep the water sources, water easements, and the water delivery system in good and working order. Such costs include capital expenditures made by the association to construct, replace, upgrade, or retrofit, the common metering devices, pumps, transmission lines, reservoirs, appurtenants, and other improvements and facilities for the production and/or delivery of water from the water sources to the delivery points. Capital recovery cost assessments are assessed based on the water allocation percentage, as defined in the declaration. This fund is also used to accumulate capital funds for future reasonably anticipated capital expenditures.