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� <br />' <br />� <br />_� <br />� <br />� <br />' <br />� <br />, <br />� <br />I! <br />� <br />The SOA is requesting a 20-year loan from the CWCB. The lending rate would be <br />4.25%, resulting in annual payments of $14,335.10 To this would be added $1433.51 <br />per year for the first 10 years to fund the emergency reserve account, for a total annual <br />cost of $15,768.61 Table 4 is a summary of the financial aspects of the project. $36 <br />annual assessments will be levied on each residential lot for the duration of the loan. This <br />represents an annual increase of $36, or $1.80 per acre-foot, based on average annual <br />diversions of 20 acre-feet. <br />Table 4. Financial <br />Summary <br />Since all other funding for the project is in the form of cash on hand, the SOA would <br />have no other debt service on this project. Operation and maintenance costs are <br />expected to decrease with the new reservoir structure, and can be accommodated by <br />the SOA's existing budget. <br />' Credit worthiness: SOA has no existing debt. SOA relies on dues collection and <br />special assessments to finance its annual budget and any extraordinary expenses. A <br />CWCB loan obligation would be handled via an annual special assessment. SOA has a <br />, history of 95% compliance with dues and special assessment collection. SOA <br />anticipates no problems satisfying its debt obligation to CWCB. <br />�l <br />� <br />� <br />, <br />, <br />, <br />Alternative �nancing considerations: The SOA has investigated alternative <br />financing sources. They have found no other source of loans or grants. <br />Co/lateral: As security for the CWCB loan the SOA can pledge its water rights. The <br />Water Rights valuation statement is included in Appendix B. <br />Economic Analysis <br />The economic benefit of the project is considerable. Without the augmentation reservoirs <br />Stagestop would not be able to use wells already drilled nor drill new wells. This would <br />leave SOA with several choices. First, go on without water letting each lot owner handle <br />his own water as needed, or second, creating a Substitute Water Supply Plan (SWSP). <br />Stagestop Augmentation Reservoirs 11 <br />Rehabilitation Feasibility Study <br />May 2010 <br />�i <br />� <br />