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<br />t <br /> <br />Financial Analvsis <br /> <br />The total estimated cost of the project is $280,000. Bennett qualifies for the mupicipal middle <br />income interest rate for 30 years at 3.50%. Bennett will provide the 10% local srare ($30,000) of <br />the project cost with cash from its reserves. <br /> <br />Due to the urgency of replacing Well #5, Bennett has acquired a commercial bridge loan from <br />Guaranty Banle This bridge loan allowed an award of a contract to re-drill/co1TIj~lete a <br />replacement well in time for summer use. The bridge loan terms require repa~ent in the <br />summer of2008, The request for a CWCB loan allows for the long term finanCirl g of the project. <br /> <br />Table 1 is a summary of the financial aspects of the project. <br />Table 1. Financial Summary <br /> <br />Proj ect Cost $ 280,000 <br />Number of Taps 1,100 <br />CWCB Loan Amount (90% of project cost) $ 250,000 <br />CWCB Loan (Inc. 1 % Service Fee) $ 252,500 <br />CWCB Annual Loan Payment $ 13,729 <br />CWCB Loan Obligation (inCluding 10% debt reserve funding) $ 15,102 <br />Monthly cost of loan per tap $ 1.14 <br />Creditworthiness: Bennett's Water Enterprise Fund has two outstanding long- erm debts <br />(balances as of December 2006): <br /> Table 2. Existing Long Term Debt <br /> Beginning Ending Due Wijrnn Payoff <br />Notes: Balance Reductions Balance One y ~ar Date <br />1995 DOLA $ 123,480 $ 11,250 $ 112,230 $ 11 ,813 2014 <br />2004 DOLA $ 48,412 $ 1,588 $ 46,825 $ 1,~67 2024 <br />Table 3 (on following page) shows the Financial Ratios for Bennett. <br /> 4 <br />