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<br />. <br /> <br />CONCLUSION AND RECOMMENDATION <br /> <br />Although the North poudre Irrigation Company is quite large <br />with 520 shareholders, the company will need financial assistance <br />on a project of this magnitude. The recommended financing for <br />this project is therefore as follows: <br /> <br />Company funds <br />Private funds (wichita Bank of Cooperatives) <br />State funds (to be repaid by water users) <br />Total <br /> <br />$ 490,000 <br />1,567,000 <br />2,057,000 <br />$ 4,114,000 <br /> <br />Under this financing arrangement, charges would be levied by the <br />State at the rate of $119,882 per year for forty years for a <br />total repayment of $4,795,278. <br /> <br />The North poudre Irrigation Company has issued 10,000 shares <br /> <br /> <br />of stock which covers about 30,000 irrigated acres. The current <br /> <br /> <br />assessment is $80 per share each year. <br /> <br />The payback on the proposed private loan is anticipated to <br />be $284,200 per year for 30 years (based on an 18% interest <br />rate). The effect of the total payback on this project will be <br />to raise the annual assessment to $93 on each share of <br />outstanding stock. This amounts to just over $4 per year for <br />each irrigated acre. <br /> <br />. <br /> <br />-3- <br /> <br />Revised 1/8/82 <br /> <br />/ <br />