C150125 Feasibility Study - Laserfiche WebLink

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Assessments have been raised over the past few years in anticipation of the repairs being made to Hotel Twin Reservoir. A recent history of annual assessments and proposed assessments is as follows: Past Assessments 2000 $ 30 2001 $ 55 2002 $ 70 Proposed Assessments 2003 $70 Alternative Fundin2: Sources The Company has investigated alternative financing with the Surface Creek Bank Center in Cedaredge and has received a temporary financing line-of-credit (with a credit limit of $215,000) that is due and payable on or before September 10, 2003. The CWCB loan will be used to payoff the balance on the line-of-credit. Credit Worthiness The SCD & RC has' an existing construction loan with Surface Creek Bank Center in Cedaredge that will be paid offwith the CWCB permanent loan. The SCD & RC will maintain a cash reserve of about $10,000 in 2002. By maintaining the current assessment level at $70 the company hopes to build this level to $15,000 to $20,000 in several years. Collateral As security for the loan the SCD & RC will pledge assessment revenues backed by an assessment covenant and the project itself. Social and Physical Impacts The project will have no significant social impacts, since it will assure the continued operation of an existing reservoir. The project will have minor physical impacts, once construction is complete. Conclusions 1. The SCD & RC is an incorporated entity. It is registered in the State of Colorado and therefore qualifies to enter into a contract with the CWCB for the purpose of obtaining a Construction Fund Loan. 2. The project would provide for the continued delivery of irrigation water to shareholders. 3. The total estimated cost ofthe project is $363,500 and will be financed by a grant from the ~CS for planning and engineering services and by a $265,000 CWCB loan for construction. Opinion of Feasibilitv The project appears to be technically and financially feasible. 7