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The financial condition of the Company is solid at the present time. The Company has a large <br />cash reserve at this time with liquid cash assets of $571,080 which includes cash in their checking <br />and savings accounts and certificate -of- deposit. The Company also has investments of <br />$414,555. They plan to pay for their portion of the project and the loan origination fee using their <br />cash assets. <br />Table 10 shows the Annual Financial Schedule of income and expenses for the Company. This <br />includes the Company's operations expenses, past loans, and the projected yearly loan payment to <br />the CWCB of $59,154 for the current project. The loan payment is based on the CWCB loan rate <br />of 3.75% over a 30 -year repayment period. <br />Column (1) shows the assessment level project over the life of the project and loan; column (2) <br />shows the revenue from assessment on 16,647 shares of stock; column (3) shows the "other <br />income" the company has from leases, water transfers, and augmentation and was held constant to <br />provide an analysis in today's dollars without inflation; column (4) is the operating expense as <br />taken from the 2011 financial statement and was held constant rather than estimating inflation; <br />and, columns (5) and (6) show the loan payment on the existing CWCB loans. <br />Column (7) in Table 10 shows the funds that will be required by the Company for its share of the <br />project costs including the Feasibility Study and the 1% loan origination fee in 2012 and the <br />remainder of their 10% of the project cost in 2012 and 2013. <br />Columns (8) and (9) show the loan payments that will be required to the CWCB and the payment <br />made into the "certificate of deposit" for the Project Reserve Fund. <br />The total income and expenses are indicated in Columns (10) and (11) with the net income for each <br />year shown in Column (12). The cash balance is the sum of Column (11) and the cash balance <br />from the previous year. The assessment levels were set to maintain CASH BALANCE greater <br />than or approximately equal to at least 50% of their normal Operations and maintenance costs. <br />Table 10 is presented in current dollars as no inflation is included. No interest is included on the <br />certificate -of- deposit or on the cash balance. Due to the low return expected over the next few <br />years, no interest was included for simplicity and as any rate chosen would be hard to justify. <br />As indicated in Table 10, the assessments will not have to be increased significantly over the <br />current $15 per share of stock. The assessment levels, as shown in Table 10, will range from $13 <br />to as high as $19 per share of stock based on our analysis. This does not take into account <br />inflation in the future, which would raise the normal O &M costs. The analysis is based on todays <br />dollars. <br />Allen Lake and Lake Isabelle — 12.012 <br />Left Hand Ditch Company Page 23 <br />