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I I I I I I I I I I I I I I I I I I I lending rate would be 2.5%, resulting in annual payments of $4294. Table 3 is a summary of the ftnancial aspects of the Project. Table 3. Financial Summary Project Cost $506,000 Loan Amount (25% of Project Cost) $126,000 CWCB Loan Payment Amount $4294. CFS of water to be carried on behalf of the Members 11.25 Annual Commitment for repayment per cfs of water to be carried $382 Annual Project Cost per acre-foot (based upon 756 acre-ft) $5.67 Since all other funding for the Project is in the form of grants, the Company would have no other debt service on this Project. The Company was incorporated in October 2004 for the purpose of undertaking the Project. Therefore, the Company has no financial history. The Company has no existing debt. The owners of the Ditch spent an average of $100 per year on maintenance costs in the recent past. Maintenance costs are expected to be about the same or less with the new pipeline, and can be accommodated by Company assessments to Members pursuant to the Bylaws. The Company checking account at the Mancos Valley Bank presently has a balance of $130 as a reserve for maintenance expenses. Credit worthiness: The Company has no existing debt. The Company's ability to repay the loan is supported by the Funding Agreement and the payment reserve account. Loan Application: The Loan application to CWCB for the Project financing is contained in Appendix E. Alternative financing considerations: The Company has obtained approximately $380,000 in cost share (grant) from the NRCS to cover 75% of the construction costs plus an in-kind grant from the NRCS for engineering design and construction inspection. Long-term financing for the Company's portion of the construction costs ($126,000) could not be attained elsewhere, and the cost could not be financed internally with a one-time assessment. Collateral: As security for the CWCB loan, the Company can pledge the Funding Agreement, the project structures, and a payment reserve account of two annual payments. Economic Analysis The economic benefit of the project is considerable. The additional water to be delivered to the Members after completion of the Project is estimated by the NRCS to