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� <br />, <br />� <br />�' J <br />� <br />, <br />' <br />� <br />� <br />The Grand River Ditch Company will cover any costs that exceed the estimated project cost. <br />The Grand River Ditch Company is requesting a 30-year loan from the CWCB. The standard <br />agricultural lending rate would be 4%, resulting in annual payments of $14,458. To this would be <br />added $1,446 per year for the first 10 years to fund the emergency reserve account, for a total <br />annual cost of 15 903. <br />Ta61e 3 is a summary of the financial aspects of the project. Annual assessments are $150 per <br />share. <br />**The increase in annual assessments are to be determined. <br />Table 3. Financial Summary <br />Pro'ect Cost $538,000 <br />Loan Amount 75% of Pro'ect Cost $538,000 <br />CWCB Loan Pa ment Amount, includin 10% loan reserve $15,903 <br />Number of Shareholders 148 <br />Number of Shares of Stock 270 <br />Current Assessment per Share $150 <br />Future Assessment er Share **see above <br />Annual Project Cost per acre-foot <br />Avera e annual diversions: 15,000 acre-feet <br />Since all other funding for the project is in the form of grants, the Company would have no other <br />debt service on this project. Operation and maintenance costs are expected to decrease with <br />the new diversion structure, and can be accommodated by the Company's existing budget. <br />' Credit worthiness: Grand River Ditch Company has no existing debt. Table 4 shows the <br />Financial Ratios for the Grand River Ditch Company and indicates average to strong ability to <br />repay with the project in place. <br />� The Grand River Ditch Company operates on assessments of the water users. For many years <br />the Ditch Company has kept the assessments as low as possible as many of the users are just <br />getting by. Prior projects have required loans by the District to be funded. A major project like <br />' this could cause the failure of the ditch company and leave the water unused if loans and grants <br />are not obtained. <br />, <br />, <br />' <br /> �' <br />Table 4. Financial Ratios <br />Financial Ratio Without the ro "ect With the ro "ect <br />O eratin Ratio revenue/ex ense <br />Debit Service Coverage Ratio <br />revenues-ex enses /debt service <br />Cash Reserves to Current Ex ense <br />Annual Cost per acre-foot <br />15,000 acre-feet diverted. <br /> � <br />