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� Page 3 <br /> Trust Company was considered to have the best overall proposal and also had the lowest <br /> proposed charges. <br /> The proposals submitted to the City were as follows: � <br /> Firm Fees <br /> Magna $1,500 flat fee or 6% of gross <br /> Farmers National $50 per month and 6% of gross <br /> FirstBank 10% of gross <br /> First of America did not include in proposal <br /> RJW Fanns none - submitted cash rent bid of$166.01 per tillable acre <br /> for DeWitt property and recommended not farming Oakley <br /> site. <br /> There are two common farm management fee alternatives: annual flat fee and percentage of <br /> gross. Magna Trust Company proposed these rates: <br /> A. $1,500 annual flat fee. <br /> Advanta�es <br /> Easy to administer. <br /> Fixed, known cost with quarterly payments. <br /> Disadvanta�es <br /> May cost slightly more than the percentage of gross income alternative if crop yield is <br /> lower than average. <br /> B. 6% of annuat gross income. <br /> Advantages <br /> May cost slightly less than flat fee if crop yield is lower than average. <br /> Disadvantages <br /> Slightly more difficult to administer. <br /> Annual cost can be estimated but not guaranteed. <br /> Cost will increase if more property at the Oakley site is farmed. <br /> The 6% of annual gross income fee would be approximately $1,498. This is based on 6% of <br /> the cash rent income of$160 per acre X (116 tillable acres [DeWitt] + 40 tillable acres [Oakley]) <br /> _ $24,960. $24,960 X 6% _ $1,498. <br />