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i� <br />i� <br />I' <br />of approximately $14,000 which is approximately the amount of reserve the SIDC carries over <br />each year. This reserve is approximately equal to approximately 18 % of their normal operating <br />expenses. <br />Table 8 is presented in current dollars as no inflation is included. Interest is included on the <br />' certificate-of-deposit at a S% rate and interest is included on the cash balance at a 2.5 % rate. Both <br />rates may be slightly high for today's market but would be expected to be a reasonable for the life <br />of the loan. <br />As indicated in Table 8, the assessments will have to be increased significantly over the current <br />level of $125 per share. The assessments will spike at a$230 per share level in 2006 and will <br />remain at approximately $215 a share throughout most of the loan period. <br />CREDIT WORTHINESS <br />The SIDC currently has only one outstanding loan to the First National Bank of Longmont for the <br />ditch rider's residence. This loan had a balance due on December 31, 2002 of $21,045 with a <br />maturity date of March 25, 2011. The monthly payment on this loan is $574.88 and is included <br />in the operational costs indicated in Table 9. <br />The SIDC does have a relationship with and has conducted business with First National Bank of <br />Longmont and has a credit line of $10,000 with this bank. However, they have not borrowed <br />large sums of money in the past as they have not affected any major rehabilitation of the system. <br />ALTERNATIVE FINANCING CONSIDERATIONS <br />The SIDC has investigated alternative fnancing with the First National Bank of Longmont. The <br />bank has indicated they would consider a loan for the SIDC after review of their fnancial status. <br />The loan would be for 25 years with a variable interest rate equal to the Wall Street Journal Prime <br />Rate plus 1-1/4 percent. Currently that rate would be 5-1/2 percent and would increase the yearly <br />loan payment from $49,384 to $74,550. Included in Appendix G is a letter from the bank stating <br />their position. <br />Knoth Reservoir-Feasibility Study Page 11 <br />