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Income to repay the CWCB loan will come from a dues increase of about $917 per month. The <br />KTC's ability to enforce payment of inembership dues through lien and foreclosure against <br />individual properties assures that dues can always be collected. <br />Alternative financing sources: The KTC actively sought alternative financing, and did apply <br />for a loan from their Financial Institution. However the terms were prime plus 1%. This option <br />would result in a loan payment of approximately $80,000 per year (compared to $45,411 with a <br />CWCB loan.) The Financial Institution option is not feasible for the Association. <br />Collateral: As security for the loan the KTC will pledge revenues from membership dues <br />backed by rate covenant, and other KTC property (water rights or real estate) of value at least <br />equal to the loan amount. <br />Economic Analysis <br />If the project is not completed the lake level will drop as discussed in the no action altemative. <br />The net loss is the recreation and aesthetic value of the property adjacent to the lake. With no <br />recreation the value of the land adjacent to the lake decreases significantly. Without adequate <br />fish habitat the very reason for the existence of the KTC is eliminated. The actual fost dollar <br />value has not been estimated but this loss will be realized until the water is allowed to run <br />through the lake and the lake level maintained at an acceptable elevation. A major benefit of the <br />project is avoiding the economic loss associated with the lack of augmentation water within the <br />service area. <br />Social and Physical Impacts <br />The project will have no significant socia/ impacts, since it will assure the continued operation of <br />an existing recreation facility. The project will have minor physical impacts, once construction is <br />complete. The outlet structure will be small and a slight increase in dam elevation will not be <br />noticed. <br />Kenosha Trout Club Page 8 of 9 <br />Feasibility Study - Augmentation Water Purchase 1038KTCO2 <br />March 2001 <br />Table 3. Financial Ratios <br />