Laserfiche WebLink
amount ($1,900,000) to determine potential effects on the stockholder assessments represents a <br />worst case scenario for assessment increases. The remainder of the project costs, the 1% loan <br />origination fee, the loan payments and the payments into the 10% reserve would be paid by an <br />increase in assessments on the shares of stock. <br />Revenue for operations is derived from assessments on 2,844 shares of outstanding FMRICo <br />stock. The annual recommended budget and assessments are presented to the stockholders and <br />approved at the annual meeting held in January of each year. The 2009 assessment was <br />$109.16 per share. (In comparison, the 2008 assessment was $109.16 per share and the 2007 <br />assessment was $105.16.) Part of the annual FMRICo assessment ($19.16 per share) is to pay <br />assessments to Jackson Lake Reservoir & Irrigation Company for two CWCB loans. The <br />JLRICo loans are scheduled to be retired in 2031 and 2031. <br />The financial condition of the Company is solid at the present time. FMRICo has two <br />outstanding loans, both with the same local bank. A vehicle loan will be paid off in August <br />2010. A 10-year loan to finance purchase of 30 acres of property will be paid off <br />approximately two years prior to the scheduled 2017 payoff date. Two years of financial <br />statements are included in Appendix G. For fiscal year 2008, the Company had total operating <br />revenues of $516,402 and total operating expenses of $429,370. <br />Table 1 on Page 12 shows the projected cash flow and annual financial statement for the <br />Company's operations, which includes the proposed $1,900,000 loan at 2.90 % interest over a <br />30-year repayment period. <br />The analysis in Table 1 includes payment of ~19,000 for the proposed loan to a Project <br />Reserve Fund over a ten-year period to provide for one yearly payment in reserve. This <br />payment will be placed in a Project Reserve Fund and we have assumed a rate of return of 2% <br />interest on the Fund, which is included in column (4) as income. <br />Funds required by the Company during construction are included in columns (8) and (12) and <br />includes the 1% origination fee in 2010. The yearly payment to the CWCB, starting in 2011 <br />for the proposed loan, is shown in column (10). The total income and expenses are indicated in <br />Columns (5) and (12). <br />10 <br />