Laserfiche WebLink
<br />' <br /> believe that this amount will be adequate to cover costs prior to receiving <br /> CWCB funds. This loan will be repaid and WRCC cash reinstated upon <br />' receipt of CWCB funds. The Farmers Bank loan will be a credit line to be <br /> drawn on as needed. Farmers Bank will charge WRCC interest at the rate of <br /> 1 % over prime (this number now is a total of 5%). <br />' <br /> c) WRCC annual expenses and income: <br /> 1. The WRCC 2008 budget projects income of $891,262 and expenses of <br /> $823,557. The only realistic projection over the life of the proposed loan <br /> would be to increase the numbers based on the 75 year average rate of <br /> <br />' inflation which is 4%. <br /> d Loan re a ent lan: <br />p Ym p <br />' A. The annual loan repayment amount will be provided by assessments. The <br />annual loan repayment will be approximately $62,000 which will include the <br /> 1% origination fee and for the first ten years an additional $6,000. The <br /> company will set aside a Certificate of Deposit or other secured funds to cover <br />' the 10% ($6,000) for the first ten years. The balance due of $62,131 will be <br /> divided by the 1,000 shares which results in a maximum probable assessment <br />' increase of $62.00 per share. The current assessment is $275.00 per share. <br /> e) The financial impact on the users will be the amount of annual assessment increase <br /> necessary to make annual payments. The company has considered this and has <br />' concluded that this will not result in an undue hardship particularly when balanced <br /> against the gains that will be obtained as a result of the project. <br />' Credit Worthiness <br />' WRCC, Inc. has no debt. The company is financially strong as can be seen from the <br />financial statements being Appendixes J. The investment package was created as a result <br />of the sale of shares owned by Windsor Reservoir and Canal Company in the Tunnel <br />' Water Company. The investment money has been used sparingly and is currently with <br />Capital Investments with the object being to generate operational funds from income. <br />' Previous loans by Windsor include the Poudre Valley Ditch improvement project and the <br />Reservoir #8, Annex and Elder project, both of which have been paid off in a timely <br />manner. <br />Alternative Financing Considerations <br />' WRCC, Inc. considered financing this project entirely through a loan from the Farmers <br />Bank. The company has a long term, good working relationship with Farmers Bank and <br />Farmers has been the source of funds in the past for project and operating expenses. All <br />' loans have been timely paid. However, the bank is reluctant to enter into a long term <br />loan such as the one being requested here and the cost of repayment would be <br />significantly higher and more burdensome on the shareholders. <br />Page 4 <br />