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<br />The Fulton is requesting a 20-year loan from the CWCB. The standard agricultural <br />lending rate would be 2.5%, resulting in annual payments of$10,905.07. Table 3 is a <br />summary of the financial aspects of the project. Annual assessments have been increased <br />from $22.00 per share, up to $30.00 per share. This represents an annual assessment <br />increase of $57,480.00, or 53~ acre-foot, based on average annual diversions 30,666 acre- <br />feet. <br /> <br />Table 3. Financial Summary <br /> <br />Project Cost $200,000 <br />Loan Amount (75% of Project Cost) $170,000 <br />CWCB Loan Payment Amount, including 10% loan reserve $11,177.64 <br />Number of Shareholders 220 <br />Number of Shares of Stock 7,185 <br />Past Assessment per Share $22.00 <br />Current Assessment per Share $30.00 <br />Annual Project Cost per acre-foot <br />(Average annual diversions: 30,666 acre-feet) $.36 <br /> <br />Since all other funding for the project is in the form of self funding, the Company <br />would have no other debt service on this project. <br /> <br />Credit worthiness: Fulton has no existing debt. Current financial statements show <br />Fulton operating at a net loss in recent years. These statements are somewhat deceiving <br />given payments in excess of $100,000 which Fulton has received from the City of <br />Brighton for a carriage agreement which was shown as the sale of a property right or <br />easement rather than income. This method has also been used to deal with payments for <br />easements or crossings received from E-470 and other entities in the past. <br /> <br />Fulton as a Colorado Mutual Ditch Company does not seek any profit in its <br />business or operations. Fulton is in the process of determining what assessments are <br />needed to meet its operating expenses and loan obligations in the future, and will increase <br />assessments as necessary to meet expenses. <br /> <br />Alternative financing considerations: The Fulton has investigated alternative financing <br />sources. Fulton is in the process of obtaining a short term (6 month) loan for $100,000 <br />from South Adams County Water and Sanitation District to assist in the initial <br />construction cost. It is anticipated that Fulton will utilize the funds provided by CWCB <br />to repay/refinance the South Adams loan. <br /> <br />Collateral: As security for the CWCB loan the Fulton can pledge assessment income, <br />and the real estate owned by the Company. <br /> <br />Page 8 of9 <br /> <br />C:\Documents and SetlingslJody KammIMy Documenls\DitcheslFultonISpillwaylFeasibilityStudy.doc <br />