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<br />Nov-02-2004 02:56pm Prom- <br /> <br />T-58! P.OOS/ODS P-SS8 <br /> <br />'\ <br /> <br />..' .. <br /> <br />accomplish this task.) These two figures ($44,565.00 and $5,435.00) sum to an adjusted . <br />deficir of$50,OOO.00, and an October 2004, Project construction cost of$252,000.00 <br />(i.e., $202,000.00 + $50,000.00 = $252,000.00). At present (October 2004), we have a <br />Reserve Account balance of$29,553.48. The Board and coe have agreed to take <br />$20,000.00 out ofihis account to reduce the $50,000.00 deficit. 'This brings us to the <br />$30,000.00 we need to borrow from CWCB that I spoke to you about on the phone. <br /> <br />r have computed the annual payment on $30,000.00 at 2.75 percent interest over 30 years <br />to be $1,481.53, 'This payment computes to approltimately$0.74 per share of additional <br />annual cost that we will be aSking our shareholder to pay (i,e., $1,481.53 / approximately <br />2,000 shares = $0.74). <br /> <br />The only other cost associated with the Project that J am aware of and have not accounted <br />for, is the day-to-day Project oversight cost to be paid AIdon Westbrook, our ditch rider. <br />Aldon has a wealth of experience in heavy equipment operation and related work. It has <br />been, alld continues to be, the Board and COC's desire that A1don will monitor the daily <br />progress on the Project through completion. The Board has estimated the cost for this <br />service to be between $5,000.00 and $7,000.00. 'This expense will be paid from a <br />separate working capital fund account in our budget. <br /> <br />On Thursday, November 4, 2004, the Board will hold a special meeting to ask our <br />shareholders to approve the additional increase to cover the deficit. The Board regrets <br />the need to go back to our shareholders for additional support, ,but we do not see another . <br />viable option. <br /> <br />As always, thank you for your assistance and guidance in this matter. If you have any <br />questions please call me at (970) 883-5595 (H), (970) 759-6868 (C), or (970) 385-6558 <br />(W). <br /> <br />~~ <br /> <br />Ken Beck <br />President <br />Pine River Bayfield Ditch Company <br /> <br />. <br /> <br />2 <br />