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Feasibility Study for the Plaza Project — Phase 2. McDonald Ditch Implementation Project <br />Section 9 - Financial Plan <br />9.1 Current Financial Condition <br />The McDD Company proposes to apply for a $70,000.00 loan from the Colorado Water <br />Conservation Board (CWCB) for 20 years at 2.50% interest. This amount represents 8% of the <br />total project cost. Other sources of funds are detailed in Section 8. The 1% loan origination fee <br />and loan payments will be paid with funds from the McDD savings and stock assessments. <br />Revenue is derived from assessments of 14.4 shares of stock at $50o annually. This assessment <br />value has been constant for over five years. It is not anticipated that an increase in assessments <br />will be necessary to make payments, but the shareholders are willing to do so if needed. <br />The McDD currently has $22,879.54 in savings that has been accumulated in preparation for the <br />Project. Another $7,200.00 will be added to savings after assessments are collected in March <br />2012. At that time, the total funds in savings will be $30,079.54• Annual financial standings are <br />in the treasurer's report in the annual meeting minutes from 2010 and 2011 (Appendix E). <br />9.2 Credit Worthiness <br />The financial condition of the McDD is solid at the present time. The company has no debt and <br />no outstanding obligations. The McDD has a history of responsible borrowing; in the 1970s, a <br />loan with CWCB was executed to line the ditch with concrete. This project was completed on <br />time and on budget. The loan has since been paid in full. The McDD has never had to borrow <br />money to conduct normal business. <br />22 <br />