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<br />.' l I,. ... <br /> <br />start on the construction, the Company would borrow the CWCB <br />portion for a short term from the local bank and repay the bank <br />with proceeds from the CWCB loan when money is available after <br />July 1, 1991. <br /> <br />The Company's banker indicates that the $350,000 loan would <br />carry an interest rate of 12 percent. The payment on this loan <br />would be $42,456, for the life of the loan or $1,698.250. The <br />combined annual payment for the CWCB loan and the Company's <br />bank loan would be $62,853. This amounts to an annual <br />assessment of $62.85/share for the Company. <br /> <br />(b) 2nd Plan <br /> <br />The Company has requested a 100 percent, 40 year 5 percent <br />loan. The $700,000 40 year loan requires a $40,795 annual <br />payment and a total payback of $1,631,788. <br /> <br />Recommendation <br /> <br />The Board has considered the above requests and several <br />options. Regarding the lOO percent loan request they are <br />listed below. <br /> <br />Loan Interest Term Annual Cost <br />Amount Percent Years Payment Per Share <br />$700.000 5 % 30 $45,536 $45.53 <br />700,000 5 % 25 49,666 49.66 <br />700.000 5 % 20 56,169 56.l6 <br />700,000 6 % 30 50,854 50.85 <br />700,000 6 % 20 61,029 61. 02 <br /> <br />It is the Board's recommendation that this project be <br />authorized by the General Assembly in the amount of $700,000 <br />with a 25 year repayment period, subject to the Windsor <br />Reservoir Company demonstrating to the Board's satisfaction <br />that it can meet its repayment Obligation. <br /> <br />DWW/GKE/bj <br /> <br />-2- <br />