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<br />total cost. LSCRC will be responsible for the balance of$123,768, which represents $25% of <br />the construction cost. <br /> <br />LSCRC is requesting a 20-year loan from the CWCB. The standard municipal lending rate <br />would be 3.75%, resulting in annual payments of approximately $26,720. The amount of <br />replacement water needed for each lot ranges from 2.2 shares to 3.7 shares, depending on the <br />various augmentation plan. Annual assessments will increase from $2.00 per share up to $8.50 <br />per share. Based on this, each lot owner's annual assessment will be from $19.00 to $31.50. <br />Table 2 is a summary of the financial aspects ofthe project. See Appendix H, Financial <br />Statements for 2001 - 2004. <br /> <br />Table 2. Financial Summary <br /> <br />Project Cost <br />Loan Amount (75% of Project Cost) <br />CWCB Loan Payment Amount <br />Number ofShares(J) <br />Current Assessment per Share <br />Future Assessment per Share <br />Annual Project Cost per lot (2.2 to 3.7 shares/lot) <br /> <br />$495,072.00 <br />$371,304.00 <br />$26,720.00 <br />3500.00 <br />$2.00 <br />$8.50 <br />$18.50 to $31.45 <br /> <br />(1) Assumes the reduction of200 share because ofthe capacity going from 37 afto 35 af. <br /> <br />LSCRC's 25% share has been obtained through a one time special assessment. Operation and <br />maintenance costs are expected to decrease with the lining, and can be accommodated by the <br />Company's existing budget. <br /> <br />Credit worthiness: LSCRC has no existing debt. Table 3 shows the Financial Ratios for <br />LSCRC and indicates average to strong ability to repay with the project in place. <br /> <br />Table 3. Financial Ratios <br />Financial Ratio Without tile Project With the project <br />Operating Ratio (revenue/expense) 200% (strong) 105% (average) <br />Debit Service Coverage Ratio No debt (strong) 106% (average) <br />(revenues-expenses)/debt service <br />Cash Reserves to Current Expense 787% (strong) 91% (average) <br />Annual Cost per acre-foot $104 (average) $810 (average) <br />Annual Cost per subdivision lot $5.20 (average) $22.07 (average) <br /> <br />Alternative financing considerations: LSCRC has investigated aItemative financing <br />sources including commercial loans. All were higher than the rates of the CWCB. <br /> <br />8 <br />