C150336 Feasibility - Laserfiche WebLink

Home Browse Search

CREDIT WORTHINESS The Company currently has one outstanding loan as previously described. The loan will mature and be paid off in 2029. The Company has significant capital assets, with total assets of over $1,600,000. As shown in Table 10, the Company does not have to significantly raise the assessments and could tap into their cash reserves to make the yearly payment without significantly affecting their financial position. ALTERNATIVE FINANCING CONSIDERATIONS The Company has investigated alternative financing with the Bank of the West located in Niwot, Colorado. The bank has indicated they would consider a loan for the Company after review of their financial status. They would consider a loan with a 30 year term at an interest rate between 5.22% and 5.22 %. Using the 5.22% interest rate for 30 years, the yearly loan payment would increase from $54,375 to $76,409. Included in Appendix D is a letter from the bank stating the bank's position. The Company has also investigated financing by a one -time assessment increase. Based on the 16,532 shares of stock the one -time assessment increase will be $77 per share of stock. This increase has been determined to be unfavorable for the stockowners and has been rejected by the board. OPINION OF FEASIBILITY With the permit secured for Lake Isabelle there do not appear to be significant roadblocks which would keep the Left Hand Ditch Company from successfully completing this project. The project does not significantly raise the level assessments from the current level of $15 per share. Following is a cost to benefit analysis of the project. Total Proiect Cost including interest $54,375 x 30 years + $12,730 + 127,300 = $ 1,771,280 Total Cost per Share of Stock $1,771,280 - 16,647 = $107 Total Cost Per Share of Stock Per Year $ 107 - 30 years = $3.57 Cost Per Acre -foot Of Water Saved Allen Lake and Lake Isabelle — 12.012 Left Hand Ditch Company Page 25